Q 36PGB-1 Journalizing transactions, posti... [FREE SOLUTION]

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鈥� 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 1. Journalize each transaction. Explanations are not required

Question:The accounts of Anderson Moving Company follow with their normal balances as of August 31, 2018. The accounts are listed in no particular order. Common Stock $ 49,800 Trucks $ 123,000 Insurance Expense 600 Fuel Expense 1,000 Accounts Payable 4,000 Dividends 5,600 Service Revenue 82,000 Utilities Expense 300 Building 41,000 Accounts Receivable 10,000 Advertising Expense 200 Notes Payable 56,000 Salaries Expense 6,000 Office Supplies 100 Cash 4,000 Prepare Anderson鈥檚 trial balance as of August 31, 2018.

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

Beth Stewart started her practice as a design consultant on November 1, 2018. During the first month of operations, the business completed the following transactions:

Nov. 1 Received \(41,000 cash and issued common stock to Stewart.

4 Purchased office supplies, \)1,200, and furniture, \(2,300, on account.

6 Performed services for a law firm and received \)2,100 cash.

7 Paid \(27,000 cash to acquire land to be used in operations.

10 Performed services for a hotel and received its promise to pay the \)800 within one week.

14 Paid for the furniture purchased on November 4 on account.

15 Paid assistant鈥檚 semimonthly salary, \(1,470.

17 Received cash on account, \)500.

20 Prepared a design for a school on account, \(680.

25 Received \)1,900 cash for design services to be performed in December.

28 Received \(3,100 cash for consulting with Plummer & Gordon.

29 Paid \)840 cash for a 12-month insurance policy starting on December 1.

30 Paid assistant鈥檚 semimonthly salary, $1,470. 30 Paid monthly rent expense, $650.

30 Received a bill for utilities, \(650. The bill will be paid next month.

30 Paid cash dividends of \)2,800.b

Requirements 4. Prepare the trial balance of Beth Stewart, Designer, as of November 30, 2018.

What is the calculation for the debt ratio? Explain what the debt ratio evaluates.

Question: Correcting errors in a trial balance

The following trial balance of Joy McDowell Tutoring Service as of May 31, 2018, does not balance.

Account Title Office Supplies Cash Debit Credit Accounts Receivable Computer Equipment Accounts Payable Utilities Payable Common Stock Dividends Service Revenue Salaries Expense Utilities Expense Rent Expense Total Balance $ 33,100 11,600 $ 11,100 9,600 800 $ 2,800 $ 35,000 1,900 800 700 2,000 600 15,800 10,400

Investigation of the accounting records reveals that the bookkeeper:

a. Recorded a \(400 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.

b. Posted a \)2,000 credit to Accounts Payable as \(200.

c. Did not record Utilities Expense or the related Utilities Payable in the amount of \)300.

d. Understated Common Stock by $100.

Prepare the corrected trial balance as of May 31, 2018, complete with a heading; journal entries are not required.

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Short Answer

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Step-by-Step SolutionStep 1: Definition of Salary Expense

Recording Journal Entries

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	Journal entry
Date	Particulars	Debit ($)	Credit ($)
Nov
1	Cash	$41,000
	Common Stock		$41,000

4	Office Supplies	$1,200
	Furniture	$2,300
	Accounts Payable		$3,500

6	Cash	$2,100
	Service Revenue		$2,100

7	Land	$27,000
	Cash		$27,000

10	Accounts Receivables	$800
	Service Revenue		$800

14	Accounts Payable	$2,300
	Cash		$2,300

15	Salary Expense	$1,470
	Cash		$1,470

17	Cash	$500
	Accounts Receivables		$500

20	Accounts Receivables	$680
	Service Revenue		$680

25	Cash	$1,900
	Unearned Revenue		$1,900

28	Cash	$3,100
	Service Revenue		$3,100

29	Prepaid Insurance	$840
	Cash		$840

30	Salary Expense	$1,470
	Cash		$1,470

30	Rent expense	$650
	Cash		$650

30	Utilities Expense	$650
	Utilities Payable		$650

30	Dividends	$2,800
	Cash		$2,800