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Question: Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance

Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:

Jul. 1 York contributed \(63,000 cash to the business in exchange for common stock.

5 Paid monthly rent on medical equipment, \)510.

9 Paid \(23,000 cash to purchase land to be used in operations.

10 Purchased office supplies on account, \)1,600.

19 Borrowed \(22,000 from the bank for business use.

22 Paid \)1,100 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 \)6,400 cash and \(6,000 on account.

31 Paid employees’ salaries \)2,200, office rent \(1,900, and utilities \)560. Record as a compound entry.

31 The business received \(1,120 for medical screening services to be performed next month.

31 Paid cash dividends of \)7,200.

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.

Requirements 3. Prepare the trial balance of Vince York, M.D., as of July 31, 2018.

Step by step solution

01

Step-by-Step SolutionStep 1: Definition of salaries expense

The salaries expense is defined as the cost incurred by the company in order to compensate their employees.

02

Step 2:Preparing trial balance

Vince York
Trial Balance
July 31, 2018
Account Titles	Debit ($)	Credit ($)
Cash	$56,050
Accounts Receivables	$6,000
Office Supplies	$1,600
Land	$23,000
Accounts Payable		$500
Advertising Payable		$240
Unearned revenue		$1,120
Notes Payable		$22,000
Common stock		$63,000
Dividends	$7,200
Service Revenue		$12,400
Salaries Expense	$2,200
Rent expense	$2,410
Utilities expense	$560
Advertising Expense	$240
Total	$99,260	$99,260

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