Al Ramos, a dentist, opened his own dental clinic on May 1 of the current year, During the first month of operations, the business completed the following transactions. 1 Al Ramos invested 150,000 cash to start his own dental clinic. 1 Paid rent of dental clinic for the month, 8,400. 2 Purchase for cash 10,750 worth of dental supplies. 3 Purchased dental equipment for 245,000, paying cash of 45,000 and issuing 4 non-interest bearing notes for 50,000 each due every end of the month beginning May 31. 5 Rendered services to a patient, receiving cash of 8,200. 9 Paid electricity and water bills, 2,680 10 Rendered services to some patients on account, 19,500 14 Purchased additional dental supplies on account, 7,420 15 Paid salaries of dental aide, 4,190 16 Returned dental supplies worth 1,640 purchased on May 14 because of some defects 18 Received cash from patients on account, 7,800 22 Paid the dental supplies purchased on May 14 25 Al Ramos withdrew cash for his personal use, 5,000 31 Paid the first installment on notes payable, 50,000 Instructions: 1. Record the transactions in the journal, using the following account titles: a. Cash b. Accounts Receivable c. Dental Supplies d. Dental Equipment e. Accounts Pay f. Notes Payable g. Al Ramos, Capital h. Al Ramos, Drawing i. Professional Fees j. Salary Expense Rent Expense k. 1. Utilities Expense 2. Post the journal entries to the ledger 3. Prepare the trial balance at December 31 of the current year
Al Ramos, a dentist, opened his own dental clinic on May 1 of the current year, During the first month of operations, the business completed the following transactions. 1 Al Ramos invested 150,000 cash to start his own dental clinic. 1 Paid rent of dental clinic for the month, 8,400. 2 Purchase for cash 10,750 worth of dental supplies. 3 Purchased dental equipment for 245,000, paying cash of 45,000 and issuing 4 non-interest bearing notes for 50,000 each due every end of the month beginning May 31. 5 Rendered services to a patient, receiving cash of 8,200. 9 Paid electricity and water bills, 2,680 10 Rendered services to some patients on account, 19,500 14 Purchased additional dental supplies on account, 7,420 15 Paid salaries of dental aide, 4,190 16 Returned dental supplies worth 1,640 purchased on May 14 because of some defects 18 Received cash from patients on account, 7,800 22 Paid the dental supplies purchased on May 14 25 Al Ramos withdrew cash for his personal use, 5,000 31 Paid the first installment on notes payable, 50,000 Instructions: 1. Record the transactions in the journal, using the following account titles: a. Cash b. Accounts Receivable c. Dental Supplies d. Dental Equipment e. Accounts Pay f. Notes Payable g. Al Ramos, Capital h. Al Ramos, Drawing i. Professional Fees j. Salary Expense Rent Expense k. 1. Utilities Expense 2. Post the journal entries to the ledger 3. Prepare the trial balance at December 31 of the current year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Al Ramos, a dentist, opened his own dental clinic on May 1 of the current year, During the first month of
operations, the business completed the following transactions.
1 Al Ramos invested 150,000 cash to start his own dental clinic.
1 Paid rent of dental clinic for the month, 8,400.
2 Purchase for cash 10,750 worth of dental supplies.
3 Purchased dental equipment for 245,000, paying cash of 45,000 and issuing 4 non-interest bearing
notes for 50,000 each due every end of the month beginning May 31.
5 Rendered services to a patient, receiving cash of 8,200.
9 Paid electricity and water bills, 2,680
10 Rendered services to some patients on account, 19,500
14 Purchased additional dental supplies on account, 7,420
15 Paid salaries of dental aide, 4,190
16 Returned dental supplies worth 1,640 purchased on May 14 because of some defects
18 Received cash from patients on account, 7,800
22 Paid the dental supplies purchased on May 14
25 Al Ramos withdrew cash for his personal use, 5,000
31 Paid the first installment on notes payable, 50,000
Instructions:
1. Record the transactions in the journal, using the following account titles:
a. Cash
b. Accounts Receivable
c. Dental Supplies
d. Dental Equipment
e. Accounts Payable
f. Notes Payable
g. Al Ramos, Capital
h. Al Ramos, Drawing
i. Professional Fees
j. Salary Expense
k.
Rent Expense
1.
Utilities Expense
2. Post the journal entries to the ledger
3.
Prepare the trial balance at December 31 of the current year
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