Question

Directions: Journalize the Transactions

Michael Murray is a licensed dentist. During the first month of the operation of his business, the following events and transactions have taken place:

March 1. Stockholders invested $40,000 cash in exchange for common stock.

1. Hired a secretary- receptionist at a salary of $600 per week payable monthly
2. Paid office rent for the month $1700
3. Purchased dental supplies on account from Jordan’s Company $5,200

10. Performed dental services and billed insurance companies $6,600

11. Received $1,200 cash advance from Hodge Crow for an implant.

20. Received $2,100 cash for dental services performed for Raiman spears.

30. Paid secretary-receptionist for the month $2400

30. Paid $2200 to Jordan’s Company for accounts payable due.

Michael uses this chart of accounts. Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expenses

Date                      Account titles                     Debit                     Credit

Answer 1