Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions: Jul 1 Yung deposited $68,000 cash in the business bank account. The business gave capital to Yung. 5 Paid monthly rent on medical equipment, $560. 9 Paid $16,000 cash to purchase land for an office site. 10 Purchased supplies on account, $1,600. 19 Borrowed $23,000 from the bank for business use. Yung signed a note payable to the bank in the name of the business. 22 Paid S1,300 on account. 31 Revenues earned during the month included $6,500 cash and $5,N00 on account. 31 Paid employees' salaries $2,500, office rent $1,100, and utilities $400. Make a single compound entry. 31 Yung withdrew cash of $7,000. The business uses the following accounts: Cash; Accounts receivable; Supplies; Land; Accounts payable; Notes payable; Yung, capital; Yung, drawing; Service revenue; Salary expense; Rent expense; and Utilities expense. Requirements 1. Journalize each transaction, as shown for July 1. Explanations are not reguired. Jul 1 Cash 68,000 Yung, capital 68,000 2. Post the transactions to the T-accounts, using transaction dates as posting refer- ences in the ledger accounts. Label the balance of each account Bal, as shown in the chapter. 3. Prepare the trial balance of Vernon Yung. M.D. at July 31, 2012.
Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions: Jul 1 Yung deposited $68,000 cash in the business bank account. The business gave capital to Yung. 5 Paid monthly rent on medical equipment, $560. 9 Paid $16,000 cash to purchase land for an office site. 10 Purchased supplies on account, $1,600. 19 Borrowed $23,000 from the bank for business use. Yung signed a note payable to the bank in the name of the business. 22 Paid S1,300 on account. 31 Revenues earned during the month included $6,500 cash and $5,N00 on account. 31 Paid employees' salaries $2,500, office rent $1,100, and utilities $400. Make a single compound entry. 31 Yung withdrew cash of $7,000. The business uses the following accounts: Cash; Accounts receivable; Supplies; Land; Accounts payable; Notes payable; Yung, capital; Yung, drawing; Service revenue; Salary expense; Rent expense; and Utilities expense. Requirements 1. Journalize each transaction, as shown for July 1. Explanations are not reguired. Jul 1 Cash 68,000 Yung, capital 68,000 2. Post the transactions to the T-accounts, using transaction dates as posting refer- ences in the ledger accounts. Label the balance of each account Bal, as shown in the chapter. 3. Prepare the trial balance of Vernon Yung. M.D. at July 31, 2012.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vernon Yung practices medicine under the business title Vernon Yung, M.D. During
July, the medical practice completed the following transactions:
Jul 1 Yung deposited $68,000 cash in the business bank acount.
The business gave capital to Yung.
5 Paid monthly rent on medical equipment, $560.
9 Paid $16,000 cash to purchase land for an office site.
10 Purchased supplies on account, $1,600.
19 Borrowed $23,000 from the bank for business use. Yung signed
a note payable to the bank in the name of the business.
22 Paid $1,300 on account.
31
Revenues carned during the month included $6,500 cash and
$5,800 on account.
Paid employees' salaries $2,500, office rent $1,100, and
utilities $400. Make a single compound entry.
31 Yung withdrew cash of $7,000.
31
The business uses the following accounts: Cash; Accounts receivable; Supplies; Land;
Accounts payable; Notes payable; Yung, capital; Yung, drawing; Service revenue;
Salary expense; Rent expense; and Utilities expense.
Requirements
1. Journalize cach transaction, as shown for July 1. Explanations are not required.
Jul 1
Cash
68,000
Yung, capital
68,000
2. Post the transactions to the T-accounts, using transaction dates as posting refer-
ences in the ledger accounts. Label the balance of each account Bal, as shown in
the chapter.
3. Prepare the trial balance of Vernon Yung, M.D. at July 31, 2012.
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