$78$

Chapter $2$ Analyzing Transactions

Apr. $17.$ Paid cash for renewal of a six$-$month property insurance policy, $$370.$

$20.$ Discovered that the balances of the cash account and the accounts payable account as of April $1$ were overstated by $$200.$ A payment of that amount to a creditor in March had not been recorded. Journalize the $$200$ payment as of April $20.$

$24.$ Paid cash for laboratory analysis, $$545.$

$27.$ Paid dividends, $$1,250.$

$30.$ Recorded the cash received in payment of services $($on a cash basis$)$ to patients during April, $$1,720.$

$30.$ Paid salaries of receptionist and nurses, $$1,725.$

$30.$ Paid various utility expenses, $$360.$

$30.$ Recorded fees charged to patients on account for services performed in April, $$5,145.$

$30.$ Paid miscellaneous expenses, $$132.$

Hearts Inc.$\text{'}$s account titles, numbers, and balances as of April $1($all normal balances$)$ are listed as follows: Cash, $11,$ $$4,123$; Accounts Receivable, $12,$ $$6,725$;$-$Supplies, $13,$ $$290$; Prepaid Insurance, $14,$ $$465$; Equipment, $18,$ $$19,745$; Accounts Payable, $22,$ $$765$; Capital Stock, $31,$$$10,000$; Retained Earnings, $32,$$$20,583$; Dividends, $33,$$$0$; Professional Fees, $41,$ $$0$; Salary Expense, $51,$ $$0$; Rent Expense, $53,$ $$0$; Laboratory Expense, $55,$ $$0$; Utilities Expense, $56,$ $$0$; Miscellaneous Expense, $59,$ $$0.$

Instructions

Open a ledger of standard four$-$column accounts for Hearts Inc. as of April $1.$ Enter the balances in the appropriate balance columns and place a check mark $()$ in the Posting Reference column. $($Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.$)$

Journalize each transaction in a two$-$column journal.

Post the journal to the ledger, extending the month$-$end balances to the appropriate balance columns after each posting.

Prepare an unadjusted trial balance as of April $30.$