Maria Juarez is a licensed dentist. During the first month of the operation of her business, the
Question:
Maria Juarez is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.
April 1 Invested $40,000 cash.
1 Hired a secretary-receptionist at a salary of $600 per week payable monthly.
2 Paid office rent for the month $1,000.
3 Purchased dental supplies on account from Smile Company $4,000.
10 Provided dental services and billed insurance companies $5,100.
11 Received $1,000 cash advance from Trudy Borke for an implant.
20 Received $2,100 cash for services completed and delivered to John Stanley.
30 Paid secretary-receptionist for the month $2,400.
30 Paid $1,600 to Smile Company for accounts payable due.
Maria uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126
Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 301 Maria Juarez, Capital; No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2010.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
a J1 Date Account Titles and Explanation Ref Debit Credit Apr 1 Cash 101 40000 Maria Juarez Capital 301 40000 Owners investment of cash in business 1 ...View the full answer
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
