Using the data and basic templates provided:

a. Complete journal entries for above transactions. Note:the first two have been done for you. b. Post journal entries to general ledger accounts (T-accounts) c. Complete a trial balance

The following transactions occurred in March, 20xx when Doctors Smith and Jones opened the Lake Superior Ambulatory Care Facility.

1. Each physician contributed $25,000 to the facility; thus beginning balance (BB) in Cash T-Account is $50,000 and in OE T-Account is 50,000

1. The first 2 months rent of $2000 was prepaid for their space (note: prepaid rent is an asset)

1. Inventory of supplies was purchased for $2500 on account with a local office supply vendor

1. They purchased equipment worth $5000, borrowing money from the bank via a short-term note

1. They collected $3,000 incash paymentsfrom patients at the time of the visit

1. Patients were billed for $4,000 for services rendered. (note: revenue is earned when services are rendered)

1. While treating patients, $400 of supplies from inventory were used up. (note: when supplies are used they become expenses)

1. $2,500 was received in payment from patient who had been billed

1. The physicians paid $2500 plus $30 interest to the vendor from whom they had previously purchased inventory supplies

1. They paid other expenses of: utilities - $50 and Salaries/wages - $1600

1. The physicians recognized that one month's prepaid rent had now been used up. (note: 1 month's prepaid rent now becomes an expense)

GENERAL JOURNAL March 20xx

	Debit	Credit
1. Cash	$25,000
Cash	$25,000
Owner's Equity		$50,000
Physician investment in clinic
2. Prepaid Rent	$2,000
Cash		$2,000
Prepaid 2 months rent
3.
4.
5.
6.
7.
8.
9.
10.
11. Rent Expense	$1000
Prepaid Rent		$1000
One month rent expensed

GENERAL LEDGER

March 20xx

Asset T-Accounts

+ Cash -	+ Prepaid Rent -	+ Supply Inventory -
1. 50,000	2. 2,000	2. 2,000	11. 1000
EB:	EB:	EB:

+ Equipment -	+ Accounts Receivable -
EB:	EB:

Expense T-Accounts

+ Supply -	+ Interest -	+ Utilities -
EB:	EB:	EB:

+ Salary & Wages -	+ Rent -
		11. 1000
EB:	EB:

Equity T-Accounts Liability and Owner's Equity Accounts

Liability Accounts

- Accounts Payable +	- Bank Note Payable +
EB:	EB:

Owner's Equity Account

- Owner's Equity +
	1. 50,000
EB:

Revenue Accounts

- Patient Services Revenue +
EB:

TRIAL BALANCE Lake Superior Ambulatory Care Facility March 31, 20xx

Note: Use Ending Balances of each type of account to create the trial balance

	Debit	Credit
Cash
Prepaid Rent	1000
Inventory
Equipment
Accounts Receivable
Supply Expense
Interest Expense
Utilities Expense
Salary & Wage Expense
Rent Expense	1000
Accounts Payable
Bank Note Payable
Owner's Equity		50,000
Patient Services Revenue
TOTAL	__________________ A + E	_________________ L + OE + R

Assets +Expenses=Liabilities + Owner's Equity + Revenues