WA_2-ACCT - La Rosa1 Melissa La Rosa Dr. Christine Anglim...

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Unformatted text preview: La Rosa1 Melissa La Rosa Dr. Christine Anglim Accounting 101 2/7/12 Writing Assignment # 2 Chapter 3 Brief Exercise 3.2 Record the following selected transactions in general journal form for Sun Orthopedic Clinic, inc. Include a brief explanation of the transaction as part of the journal entry. Oct 1 The clinic issued $4,000 additional shares of capital stock to Doctor Soges at $50 per share. Oct 4 The clinic purchased diagnostic equipment. The equipment cost $75,000, of which $25,000 was paid in cash; a note payable was issued for the balance. Oct 12 Issued a check for $9,000 in full payment of an account payable to Zeller Laboratories. Oct 19 Purchased surgical supplies for $2,600. Payment is not due until November 28. Oct 25 Collected a $24,000 account receivable from Health One Insurance Company. Oct 30 Declared and paid a $300,000 cash dividend to stockholders. La Rosa2 GENERAL JOURNAL 1 2 DOC. POST. GENERAL DATE ACCOUNT TITLES NO. REF. DEBIT CREDIT 1 OCT 1 CASH 4,000.00 1 2 CAPITAL STOCK 4,000 2 3 *OWNER INVEST MORE CASH INTO DOCTOR SOGES* 3 4 OCT 4 CASH 25,000 4 5 NOTES PAYABLE 50,000 5 EQUIPMENT 75,000 6 *VENDOR PURCHASED EQUIPMENT FOR 75K, PAID 25K CASH* 6 7 OCT 12 CASH 9,000 7 8 ACCOUNTS PAYABLE 9,000 8 9 *PAID THE WHOLE BALANCE DUE TO ZELLER LABORATORES* 9 10 OCT 19 SUPPLIES 2,600 10 11 ACCOUNTS PAYABLE 2,600 11 12 *PURCHASE OF SURGICAL SUPPLIES FOR BUSINESS* 12 13 OCT 25 CASH 24,000 13 14 ACCOUNTS RECEIVABLE 24,000 14 15 *COLLECTION OF AN ACCOUNT RECEIVABLE* 15 16 OCT 30 CASH 300,000 16 17 CAPITAL STOCK 300,000 17 18 *PAID DIVIDEND TO STOCKHOLDERS* 18 Brief Exercise 3.7 La Rosa3 The following transactions were carried out during the month of May by M. Palmer and Company, a firm of design architects. For each of the five transactions, you are to state whether the transaction represented revenue to the firm during the month of May. Give reasons for your decisions. a. M. Palmer and Company received $25,000 cash by issuing additional shares of capital stock. b. Collected Cash of $2,400 from an account receivable. The receivable originated in April from services rendered to a client....
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WA_2-ACCT - La Rosa1 Melissa La Rosa Dr. Christine Anglim...

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