Journalize the Following: SCENARIO: Dr. Celine Dion, a practicing physician, decided to set up her own medical clinic in AUG 2024. Transactions for the first month are summarized below: AUG 2. Funded her business with initial investment amounting to $ 600,000. AUG 4. The business was registered. Permits and licenses paid were $6,000. Applications for utilities were also processed. Miscellaneous expenses amounted to $3,000. AUG 5. Leased a clinic and paid one year of advance rental, $130,000. Monthly rent is $20,000. AUG 7. Hired a receptionist-secretary for her clinic. The monthly salary of the staff is $30,000. AUG 10. Borrowed $200,000 from MSME Bank. Dion, acting in the interest of her business, signed a promissory note, committing to pay the amount after 12 months. Annual interest rate is 12%. AUG 12. Purchased medical supplies and paid in cash, $30,000. AUG 12. Purchased medical equipment, on account, $70,000. The amount can be paid in full or by installment, within 15 days. AUG 15. Bought furniture and fixtures, $90,000. Dion made $30,000 down payment, and the balance payable after 30 days. AUG 20. Paid half of the amount owed from the purchase of medical equipment. AUG 23. Purchased office computer, $50,000 cash. AUG 27. Paid half-month salary of the receptionist-secretary. AUG 28. Received the electric bill, $8,500. Amount will be paid after 10 days. AUG 29. Received the water bill, payable in 15 days, $3,000. AUG 30. Internet and phone bills, worth $4,000 were received and immediately paid. AUG 30. Services performed for the month totaled $60,000. Cash received, $50,000. Balance is on account, collectible in 5 days. AUG 30. Withdraw cash for personal use $5,000. AUG 31. Rent expense and interest expense were both recognized at the full month’s cost. AUG 31. Medical supplies consumed amounted to $9,000. AUG 31. Depreciation expenses will not yet be recorded for the first month.
Journalize the Following:
SCENARIO:
Dr. Celine Dion, a practicing physician, decided to set up her own medical clinic in AUG 2024. Transactions for the first month are summarized below:
AUG 2. Funded her business with initial investment amounting to $ 600,000.
AUG 4. The business was registered. Permits and licenses paid were $6,000. Applications for utilities were also processed. Miscellaneous expenses amounted to $3,000.
AUG 5. Leased a clinic and paid one year of advance rental, $130,000. Monthly rent is $20,000.
AUG 7. Hired a receptionist-secretary for her clinic. The monthly salary of the staff is $30,000.
AUG 10. Borrowed $200,000 from MSME Bank. Dion, acting in the interest of her business, signed a promissory note, committing to pay the amount after 12 months. Annual interest rate is 12%.
AUG 12. Purchased medical supplies and paid in cash, $30,000.
AUG 12. Purchased medical equipment, on account, $70,000. The amount can be paid in full or by installment, within 15 days.
AUG 15. Bought furniture and fixtures, $90,000. Dion made $30,000 down payment, and the balance payable after 30 days.
AUG 20. Paid half of the amount owed from the purchase of medical equipment.
AUG 23. Purchased office computer, $50,000 cash.
AUG 27. Paid half-month salary of the receptionist-secretary.
AUG 28. Received the electric bill, $8,500. Amount will be paid after 10 days.
AUG 29. Received the water bill, payable in 15 days, $3,000.
AUG 30. Internet and phone bills, worth $4,000 were received and immediately paid.
AUG 30. Services performed for the month totaled $60,000. Cash received, $50,000. Balance is on account, collectible in 5 days.
AUG 30. Withdraw cash for personal use $5,000.
AUG 31. Rent expense and interest expense were both recognized at the full month’s cost.
AUG 31. Medical supplies consumed amounted to $9,000.
AUG 31.
Step by step
Solved in 2 steps
