Question: Vernon Yung practices medicine under the business title Vernon Yung

Vernon Yung practices medicine under the business title Vernon Yung, M. D. During July, the medical practice completed the following transactions:
Jul. 1 Yung contributed $ 68,000 cash to the business in exchange for Common Stock.
5 Paid monthly rent on medical equipment, $ 560.
9 Paid $ 16,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $ 1,600.
19 Borrowed $ 23,000 from the bank for business use.
22 Paid $ 1,300 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in August, $ 240.
31 Revenues earned during the month included $ 6,500 cash and $ 5,800 on account.
31 Paid employees’ salaries $ 2,500, office rent $ 1,000, and utilities $ 400. Record as a compound entry.
31 The business received $ 1,140 for medical screening services to be performed next month.
31 Paid cash dividends of $ 7,000.
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.

1. Journalize each transaction. Explanations are not required.
2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vernon Yung, M. D. as of July 31, 2015.

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  • CreatedJanuary 16, 2015
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