View the step-by-step solution to:

Date 1-Jul 5 9 10 19 22 28 31 31 31 31 Accounts and Explanation Debit Credit Available accounts for journal entries: Cash Yarwood, Capital Rent...

P2-29A

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

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

Jul. 1 Yarwood contributed $68,000 cash to the business in exchange for capital.

5 Paid monthly rent on medical equipment, $550.

9 Paid $17,000 cash to purchase land to be used in operations.

10 Purchased office supplies on account, $1,800.

19 Borrowed $24,000 from the bank for business use.

22 Paid $1,700 on account.

28 The business received a bill for advertising in the daily newspaper to be paid in August, $290.

31 Revenues earned during the month included $6,000 cash and $5,500 on account.

31 Paid employees’ salaries $2,000, office rent $1,000, and utilities $550. Record as a compound entry.

31 The business received $1,260 for medical screening services to be performed next month.

31 Yarwood withdrew cash of $7,400.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yarwood, Capital; Yarwood, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.

Requirements

1. Journalize each transaction. Explanations are not required.

2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.

3. Prepare the trial balance of Vincent Yarwood, M.D., as of July 31, 2017.

P2-41

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

Problem P2-41 continues with the consulting business begun in Problem P1-54 in Chapter 1. Here you will account for Daniels Consulting’s transactions as it is actually done in practice.

Daniels Consulting completed the following transactions during December 2016:

Dec. 2 Daniels contributed $20,000 cash in exchange for capital.

2 Paid monthly office rent, $2,000.

3 Paid cash for a computer, $3,600. This equipment is expected to remain in service for five years.

4 Purchased office furniture on account, $3,000. The furniture should last for five years.5Purchased office supplies on account, $800.

9 Performed consulting service for a client on account, $2,500.

12 Paid utilities expenses, $150.

18 Performed service for a client and received cash of $2,100.

21 Received $2,400 in advance for client service to be performed in the future.

21 Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately.

26 Paid $200 on account.

28 Collected $400 on account.

30 Daniels withdrew $1,000.

Requirements

1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Daniels, Capital; Daniels, Withdrawals; Service Revenue; Rent Expense; and Utilities Expense. Explanations are not required.

2. Open a T-account for each of the accounts.

3. Post the journal entries to the T-accounts, and calculate account balances. Formal posting references are not required.

4. Prepare a trial balance as of December 31, 2016.

5. Prepare the income statement of Daniels Consulting for the month ended December 31, 2016.

6. Prepare the statement of owner’s equity for the month ended December 31, 2016.

7. Prepare the balance sheet as of December 31, 2016.

8. Calculate the debt ratio for Daniels Consulting at December 31, 2016.

Date Accounts and Explanation Debit Credit 1-Jul 5 9 10 19 22 28 31 31 31 31
Background image of page 01
Available accounts for journal entries: Cash Yarwood, Capital Rent Expense Cash Land Cash Office Supplies Accounts Payable Cash Notes Payable Accounts Payable Cash Advertising Expense Advertising Payable Cash Accounts Receivable Service Revenue Salaries Expense Rent Expense Utilities Expense Cash Cash Unearned Revenue Yarwood, Withdrawals Cash
Background image of page 02
Show entire document
Sign up to view the entire interaction

Top Answer

The way to approach this... View the full answer

McCauleyR.ACC250. (2).xls

qattachments_970c5d4d97d7523039d222547b5624425e8ffcc7 ÐÏࡱá>þÿ þÿ ÿ ÿ eÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online