Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions:Jul. 1Yung contributed $68,000 cash to the business in exchange for capital.5Paid monthly rent on medical equipment, $560.9Paid $16,000 cash to purchase land to be used in operations.10Purchased office supplies on account, $1,600.19Borrowed $23,000 from the bank for business use. Yung signed a note payable to the bank in the name of the business.22Paid $1,300 on account.28The business received a bill for advertising in the daily newspaper to be paid in August, $240.31Revenues earned during the month included $6,500 cash and $5,800 on account.31Paid employees’ salaries $2,500, office rent $1,000, and utilities, $400. Record as a compound entry.31The business received $1,140 for medical screening services to be performed next month.31Yung withdrew cash of $7,000.The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yung, Capital; Yung, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.Requirements1.Journalize each transaction. Explanations are not required.2.Post the journal entries to the T-accounts, using transaction dates as posting ref-erences in the ledger accounts. Label the balance of each account Bal.3.Prepare the trial balance of Vernon Yung, M.D. as of July 31, 2015.
(Solved Homework): Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practic…
Expert Answer
1.
Solution
Journal Entries in the books of Vernon Yung:
Date Account Titles Debit Credit
July 1 Cash $68,000
Yung, Capital $68,000
July 5 Rent Expense $560
Cash $560
July 9 Land $16,000
Cash $16,000
July 10 Office Supplies $1,600
Accounts Payable $1,600
July 19 Cash $23,000
Notes Payable $23,000
July 22 Accounts Payable $1,300
Cash $1,300
July 30 Advertising Expense $240
Advertising Payable $240
July 31 Cash $6,500
Accounts Receivable $5,800
Service Revenue $12,300
July 31 Salaries Expense $2,500
Rent Expense $1,000
Utilities Expense $400
Cash $3,900
July 31 Cash $8,110
Unearned Revenue $1,140
July 31 Yung Withdrawals $7,000
Cash $7,000
