Question

Prepare journal entries for the chapter two illustrative problem on page 84. Only prepare journal entries.

utive Problem J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April 2018, Outz completed the following transactions in her practice of cardiology: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150. 8. Purchased X-ray film and other supplies on account, $245. 9. One of the items of equipment purchased on April 3 was defective. It was re- turned with the permission of the supplier, who agreed to reduce the account for the amount charged for the item, $325. 12. Paid cash to creditors on account, $1,250. 17. Paid cash for renewal of a six-month property insurance policy. $370. 20. Discovered that the balances of the cash account and the accounts payable account as of April 1 were overstated by $200. A payment of that amount to a creditor in March had not been recorded. Journalize the $200 payment as of April 20. 24. Paid cash for laboratory analysis, $545. 27. Dr. Outz withdrew $1.250 for personal use. $1.720. 30. Recorded the cash received in payment of services to patients during April, 30. Paid salaries of receptionist and nurses, $1,725. 30. Paid various utility expenses, 5360 30. Recorded fees charged to patients on account for services performed in April, 55.115 30 Paid miscellaneous expenses, 5132 Out i les, numbers and balances as of April i ull normal balances are listed © A do) 19 AM 1/15/2020 5

Answer 1

Answer: Debit Credit General Journal Date Apr 1 Rent Expense 800 Cash 800 (To record April rent paid) Apr 3 Equipment Accounts Payable (To record equipment purchased on account) 2,100 2,100 Apr 5 Cash 3,150 Accounts Receivable 3,150 (To record cash received on account) Supplies Accounts Payable (To record Supplies purchased on account) Accounts Payable 245 Apr 8 245 325 Apr 9 Equipment (To record defective equipment returned) Accounts Payable 325 1,250 Apr 12 Cash 1,250 (To record Creditors paid on account) Prepaid Insurance Apr 17 370 Cash 370 (To record premium paid in advance) Accounts Payable Apr 20 200 Cash 200 (To record payment made to Creditors)

Apr 24 Laboratory Expense 545 Cash 545 (To record payment made for Laboratory analysis) J.F. Outz, Drawing Apr 27 1,250 Cash 1,250 (To record amount withdrew for personal use) Cash Apr 30 1,720 Professional Fees 1,720 (To record fee received from patients) Apr 30 Salaries Expense 1,725 Cash 1,725 (To record Salaries paid) Utilities Expense Apr 30 360 Cash 360 (To record Utilities paid) Apr 30 Accounts Receivable 5,145 Professional Fees 5,145 (To record fee earned on account) Miscellaneous Expense Apr 30 132 Cash 132 (To record expenses paid)