Problems Group A

P2-29A Journalizing transactions, posting journal entries to T-accounts, and

preparing a trial balance

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 capital.

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. Yung signed a note

payable to the bank in the name of the business.

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 Yung withdrew cash of $7,000.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies;

Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable;

Yung, Capital; Yung, Withdrawals; Service Revenue; Salaries Expense; Rent Expense;

Utilities Expense; and Advertising Expense.

Requirements

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.

Learning Objectives 3, 4

2. Cash Balance $69,880

Use the following spreadsheets for homework

Date 1-Jul 5 9 10 19 22 28 31 31 31 31 Accounts and Explanation Debit Credit Available accounts for journal entries: Cash Yung, Capital Rent Expense Cash Land Cash Office Supplies Accounts Payable Cash Notes Payable Accounts Payable Cash Advertising Expense Advertising Payable Cash Accounts Receivable Service Revenue Salaries Expense Rent Expense Utilities Expense Cash Cash Unearned Revenue Yung, Withdrawals Cash Cash Jul. 1 Jul. 19 Jul. 31 Jul. 31 Jul. 5 Jul. 9 Jul. 22 Jul. 31 Jul. 31 Jul. 22 Accounts Payable Service Revenue Jul. 10 Bal. Jul. 31 Bal. Advertising Payable Salaries Expense Jul. 28 Bal. Bal. Accounts Receivable Jul. 31 Bal. Unearned Revenue Jul. 31 Bal. Rent Expense Jul. 31 Bal. Office Supplies Jul. 5 Jul. 31 Bal. Notes Payable Jul. 10 Bal. Jul. 19 Bal. Land Utilities Expense Jul. 31 Bal. Yung, Capital Jul. 9 Bal. Jul. 1 Bal. Jul. 31 Bal. Yung, Withdrawals Advertising Expense Jul. 28 Bal. VERNON YUNG, MD Trial Balance July 31, 2015 Account Title Balance Debit Cash Accounts Receivable Office Supplies Land Accounts Payable Advertising Payable Unearned Revenue Notes Payable Yung, Capital Yung, Withdrawals Service Revenue Salaries Expense Rent Expense Utilities Expense Advertising Expense Total Credit