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Question: Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Victor Yang practices medicine under the business title Victor Yang, M.D. During March, the medical practice completed the following transactions:

Mar. 1 Yang contributed \(62,000 cash to the business in exchange for common stock.

5 Paid monthly rent on medical equipment, \)570.

9 Paid \(14,000 cash to purchase land to be used in operations.

10 Purchased office supplies on account, \)1,500.

19 Borrowed \(27,000 from the bank for business use.

22 Paid \)1,400 on account.

28 The business received a bill for advertising in the daily newspaper to be paid in April, \(220.

31 Revenues earned during the month included \)6,700 cash and \(5,800 on account.

31 Paid employees’ salaries \)2,100, office rent \(1,500, and utilities \)350. Record as a compound entry.

31 The business received \(1,000 for medical screening services to be performed next month.

31 Paid cash dividends of \)7,100.

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 1. Journalize each transaction. Explanations are not required.

Step by step solution

01

Step-by-Step SolutionStep 1: Definition of Compound Entry

Acompound journal entry is defined as a journal entry that has more than one item on the debit or credit side.

02

Journal Entries Passed

	Journal entry
Date	Particulars	Debit ($)	Credit ($)
March
1	Cash	$62,000
	Common Stock		$62,000
5	Rent expense	$570
	Cash		$570
9	Land	$14,000
	Cash		$14,000
10	Office Supplies	$1,500
	Accounts Payables		$1,500
19	Cash	$27,000
	Notes Payable		$27,000
22	Accounts Payable	$1,400
	Cash		$1,400
28	Advertising Expense	$220
	Advertising Payable		$220
31	Cash	$6,700
	Accounts Receivables	$5,800
	Service Revenue		$12,500
31	Salaries Expense	$2,100
	Rent Expense	$1,500
	Utilities Expense	$350
	Cash		$3,950
31	Cash	$1,000
	Unearned Revenue		$1,000
31	Dividends	$7,100
	Cash		$7,100

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