Reference no: EM132611070

Dr.Faisal javed, opened a dental clinic on August 1. The business transactions for August are shown below:

Aug. 1 Dr. Faial javed invested $250,000 cash in the business in exchange for shares of capital stock.

Aug. 4 Land and a building were purchased for $320,000. Of this amount, $85,000 applied to the land, and $235,000 to the building. A cash payment of $100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.

Aug. 9 Medical instruments were purchased for $62,000 cash.

Aug. 16 Office fixtures and equipment were purchased for $30,000. Dr. Faisal javed paid $5,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.

Aug. 21 Office supplies expected to last several months were purchased $3,500 cash.

Aug. 24 Dr. Faisal billed patients $2,500 for services rendered. Of this amount, $1,200 was received in cash, and $1,300 was billed on account (due in 30 days).

Aug. 27 A $500 invoice was received for several newspaper advertisements placed in August. The entire amount is due on September 8. Aug. 31 Paid employees $2,700 for salaries earned in August.

Instructions:

Question a. Prepare journal entries (included explanations) for each transaction.

Question b. Post each transaction to the appropriate ledger accounts (T account).

Question c. Prepared a trial balance dated August 31, 2019.