Question

Learning Objectives 3, 4 P2-35B Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Victor Yang practices medicine under the business title Victor Yang, M.D. During March, the medical practice completed the following transactions: 2. Cash Balance $69,680 Mar. 1. 5 9 10 19 22 Yang contributed $62,000 cash to the business in exchange for common stock. Paid monthly rent on medical equipment, $570. Paid $14,000 cash to purchase land to be used in operations. Purchased office supplies on account, $1,500. Borrowed $27,000 from the bank for business use. Paid $1,400 on account. The business received a bill for advertising in the daily newspaper to be paid in April, $220. Revenues earned during the month included $6,700 cash and $5,800 on account. Paid employees' salaries $2,100, office rent $1,500, and utilities $350. Record as a compound entry. The business received $1,000 for medical screening services to be performed next month. Paid cash dividends of $7,100. 31 31 31
Please explain your answer. Thank you.

Answer 1

Requirement 1: Journal Entries

Date	Account title and Explanation	Debit	Credit
Mar.1	Cash	$62,000
	Common stock		$62,000
	[To record issuance of common stock for cash]
Mar.5	Rent expense	$570
	Cash		$570
	[To record payment of rent expense]
Mar.9	Land	$14,000
	Cash		$14,000
	[To record purchase of land]
Mar.10	Office supplies	$1,500
	Accounts payable		$1,500
	[To record purchased office supplies on account]
Mar.19	Cash	$27,000
	Notes payable		$27,000
	[To record cash borrowed from bank]
Mar.22	Accounts payable	$1,400
	Cash		$1,400
	[To record cash paid for accounts payable]
Mar.28	Advertising expense	$220
	Advertising payable		$220
	[To record advertising expense to be paid in April]
Mar.31	Cash	$6,700
	Accounts receivable	$5,800
	Service revenue		$12,500
	[To record services performed for cash and on account]
Mar.31	Salaries expense	$2,100
	Rent expense	$1,500
	Utilities expense	$350
	Cash		$3,950
	[To record payment of salaries,rent and utilities]
Mar.31	Cash	$1,000
	Unearned revenue		$1,000
	[To record advance received from customers]
Mar.31	Cash dividends	$7,100
	Cash		$7,100
	[To record payment of cash dividends]

Requirement 2: T-accounts

Cash					Common stock
Mar.1	$62,000	Mar.5	$570				Mar.1	$62,000
Mar.19	$27,000	Mar.9	$14,000				Bal.	$62,000
Mar.31	$6,700	Mar.22	$1,400
Mar.31	$1,000	Mar.31	$3,950		Dividends
		Mar.31	$7,100		Mar.31	$7,100
Bal.	$69,680				Bal.	$7,100
Accounts receivable					Service revenue
Mar.31	$5,800						Mar.31	$12,500
Bal.	$5,800						Bal.	$12,500
Office supplies					Salaries expense
Mar.10	$1,500				Mar.31	$2,100
Bal.	$1,500				Bal.	$2,100
Land					Rent expense
Mar.9	$14,000				Mar.5	$570
Bal.	$14,000				Mar.31	$1,500
					Bal.	$2,070
Accounts payable
Mar.22	$1,400	Mar.10	$1,500		Utilities expense
		Bal.	$100		Mar.31	$350
					Bal.	$350
Advertising payable
		Mar.28	$220		Advertising expense
		Bal.	$220		Mar.28	$220
					Bal.	$220
Unearned revenue
		Mar.31	$1,000
		Bal.	$1,000
Notes payable
		Mar.19	$27,000
		Bal.	$27,000

Requirement 3: Trail Balance

Trial Balance
For the month ended Mar 31,2018
Account title	Debit	Credit
Cash	$69,680
Accounts receivable	$5,800
Office supplies	$1,500
Land	$14,000
Accounts payable		$100
Advertising payable		$220
Unearned revenue		$1,000
Notes payable		$27,000
Common stock		$62,000
Dividends	$7,100
Service revenue		$12,500
Salaries expense	$2,100
Rent expense	$2,070
Utilities expense	$350
Advertising expense	$220
Total	$102,820	$102,820