Reference no: EM131966810

Problem -

Jul. 1 Yarwood contributed $68,000 cash to the business in exchange for capital.

Jul. 5 Paid monthly rent on medical equipment, $550.

Jul. 9 Paid $17,000 cash to purchase land to be used in operations.

Jul. 10 Purchased office supplies on account, $1800.

Jul. 19 Borrowed $24,000 from the bank for business use.

Jul. 22 Paid $1700 on account.

Jul. 28 The business received a bill for advertising in the daily newspaper to be paid in August, $290

Jul. 31 Revenues earned during the month included $6,000 cash and $5,500 on account

Jul. 31 Paid employees' salaries $2,000, office rent $1,000, and utilities $550. Record as a compound entry

Jul. 31 The business received $1,260 for medical screening services to be performed next month

Jul. 31 Yarwood withdrew cash of $7,400.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yarwood, Capital; Yarwood, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.

Requirements

1. Journalize each transaction. Explanations are not required.

2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.

3. Prepare the trial balance of Vincent Yarwood, M.D., as of July 31, 2017.