The following transactions were completed by Good Dog Veterinary Clinic during the month of July: July 1
Question:
The following transactions were completed by Good Dog Veterinary Clinic during the month of July:
July 1 You deposited $25,000 in a bank account in the name of the business.
2 Bought filing cabinets on account from ABC Office Supply, $925, Inv. #1654.
(Office Furniture)
5 Paid cash for office supplies purchased at XYZ Office Supply, $523, Inv. #1713.
Ck# 1000.
6 Paid cash for chairs and carpets from Ducky’s Office Furniture for reception area, $938, Ck. #1001.
8 Bought a photocopier from JZ’s Office Equipment, $635, paying $135 down, placing the balance on account, Ck# 1002.
10 Received and paid the telephone bill, which included installation charges, $127,
Ck. #1003.
11 Performed professional services on account, $2,725.
14 You invested your personal computer, printer, and scanner (Office Equipment) in the business with a fair market value of $2,300 (additional investment).
17 Received and paid the bill for the State Veterinary Convention, $365, Ck. #1004,
(Miscellaneous Expense).
18 Received and paid the utility bill, $84, Ck. #1005.
20 Received cash on account from credit customers, $789.
23 Paid on account to ABC Office Supply, Inv. #1654, $155, Ck. #1006.
24 Paid the office rent for the current month, $680, Ck. #1007.
28 Received $565 cash for boarding fees.
30 Paid the receptionist’s salary, $715, Ck. #1008.
31 Withdrew cash for personal use, $1,075, Ck. #1009.
Required:
Journalize the transactions for the month of July, 2014, beginning on page GJ 1.
• You are the owner of this clinic. Therefore, add your name to the equity accounts.
• Post the journal entries to the general ledger accounts. Include the Post Reference #s for each posting.
• Prepare the Trial Balance section of the worksheet.
• Prepare the Adjustments section of the worksheet.
o Compute and record the adjustment for supplies used during the month. An inventory showed supplies on hand of $128.
o Record the adjustment for depreciation of Office Equipment of $80 for the month.
o Record the adjustment for depreciation of Office Furniture of $32 for the month.
• Complete the worksheet.
• Prepare an Income Statement for the month.
• Prepare a Statement of Owner’s Equity.
• Prepare a Balance Sheet using the report form.
• Journalize and post the Adjusting entries.
• Journalize and post the Closing entries.
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren