York contributed $63,000 cash
Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:
|
Jul. 1 |
York contributed $63,000 cash to the business in exchange for common stock. |
|
5 |
Paid monthly rent on medical equipment, $510. |
|
9 |
Paid $23,000 cash to purchase land to be used in operations. |
|
10 |
Purchased office supplies on account, $1,600. |
|
19 |
Borrowed $22,000 from the bank for business use. |
|
22 |
Paid $1,100 on account. |
|
28 |
The business received a bill for advertising in the daily newspaper to be paid in August, $240. |
|
31 |
Revenues earned during the month included $6,400 cash and $6,000 on account. |
|
31 |
Paid employees’ salaries $2,200, office rent $1,900, and utilities $560. Record as a compound entry. |
|
31 |
The business received $1,120 for medical screening services to be performed next month. |
|
31 |
Paid cash dividends of $7,200. |
The business uses the following accounts: Cash;
Requirements
- Journalize each transaction. Explanations are not required.
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.- Prepare the
trial balance of Vince York, M.D., as of July 31, 2018.
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