Chapter 2, Problem P2.35BPGB

P2-351' jf n,»l« *ng transaction’., posting journal entries to I accounts, and I . paring a trial balance

\ i; • You. i uiu i s nirdicinc undo ilie business tide Vim York, M.l >. During March, die irudu il pi at tier completed the following transactions:

Mar ' York contributed $64,000 cash to the business m exchange for capital 5 Paid monthly rent on medical equipment, $630

^raid $1 <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 $ 1,200 on account.

28 The business received a bill for advertising in the daily newspaper to be paid in

April, $270.

Revenues earned during the month included $6,600 cash and $5,800 on account.

31 Paid employees' salaries $2,700, office rent $1,500, and utilities $400. Record as a compound entry.

31 The business received $ 1,450 for medical screening services to be performed next month.

31 York withdrew cash of $6,600.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable;

York, Capital; York, 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-accounrs, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vito York, M.D., as of March 31, 2017.