Question

Here are the transactions of Rock Medical Company (a service company organized as a corporation), for the month of March. Record the following transactions for Rock Medical Company. Mar 1 Jim Rock invests $50,000 cash in exchange for common stock in Rock Medical Company. 1 Takes out a $5,000, 30-day short term note payable with an annual interest rate of 6%. 1 Purchases medical equipment on account from JK Enterprises for $22,800. 3 Pays rent for office space, $1,500 for the month. 3 Employs a receptionist, Michelle Kwin. 4 Purchases medical supplies for cash, $1,165. 10 Receives cash of $850 from patients for services performed. 15 Bills patients $11,560 for services performed. 21 Pays JK Enterprises on account, $7,600. 26 Receives $2,600 from patients on account. 30 Bills patients $6,890 for services performed. 31 Pays the following expenses in cash: Salaries and wages $2,500; miscellaneous office expenses $910. 31 Pays principal and interest on the note payable. 31 Medical supplies used during the month, $695. 31 Record depreciation expense on the equipment using the straight line method; the equipment has a 5-year life and no salvage value. 31 Record utility expense of $200 incurred for the month; bill not paid at month end Chart of Accounts: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Notes Payable (short term) Common Stock Note Payable Service Revenue Rent Expense Office Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense Utility Expense Income Summary Instructions

(e) Prepare closing entries and enter the transactions in the T-accounts (from part (b); journal entries can be handwritten or typed in Word/Excel; put on a separate page(s).

(f) Prepare a post-closing trial balance in EXCEL; use formulas to total the debits and credit

NEED HELP WITH "E" and "F"

Answer 1

Answer a.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-Mar	Cash	50,000.00
	Common Stock		50,000.00
	(record the issue of Common Stock)
1-Mar	Cash	5,000.00
	Notes Payable (Short Term)		5,000.00
	(record the loan taken on short term)
1-Mar	Equipment	22,800.00
	Accounts Payable		22,800.00
	(Record the purchase of Medical Equip.)
3-Mar	Rent Expenses	1,500.00
	Cash		1,500.00
	(record the rent paid)
3-Mar	No Journal Entry for employ of receptionist
4-Mar	Supplies	1,165.00
	Cash		1,165.00
	(record the purchase of medical supplies)
10-Mar	Cash	850.00
	Service Revenue		850.00
	(Record the service revenue)
15-Mar	Accounts Receivable	11,560.00
	Service Revenue		11,560.00
	(Record the service revenue)
21-Mar	Accounts Payable	7,600.00
	Cash		7,600.00
	(Record the payment made to JK Entt.)
26-Mar	Cash	2,600.00
	Accounts Receivable		2,600.00
	(record the cash recd from patients)
30-Mar	Accounts Receivable	6,890.00
	Service Revenue		6,890.00
	(Record the service revenue)
31-Mar	Notes Payable (Short Term)	5,000.00
	Interest Expense	25.00
	Cash		5,025.00
	(Record the note paid)
31-Mar	Supplies Expenses	695.00
	Supplies		695.00
	(record the supplies used)
31-Mar	Depreciation Expense	380.00
	Accumulated Depreciation - Equipment		380.00
	(Record the dep. Expense).
	Dep. Exp = $22,800 /5 Years X (1/12) = $380
31-Mar	Utility Expenses	200.00
	Accounts Payable		200.00
	(record the utility expenses) (b) Cash Accounts receivable Supplies Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.1 50000 Mar.3 1500 Mar.15 11560 Mar.26 2600 Mar.4 1165 Mar.31 695 Mar.1 5000 Mar.4 1165 Mar.30 6890 End.Bal. 15850 End.Bal. 470 Mar.10 850 Mar.21 7600 Mar.26 2600 Mar.31 3410 18450 18450 1165 1165 Mar.31 5025 Beg.Bal. 15850 Beg.Bal. 470 End Bal. 39750 58450 58450 Beg.Bal. 39750 Acumulated depreciation - equipment Accounts payable Date Debit Date Credit Date Debit Date Credit End.Bal. 380 Mar.31 380 Mar.21 7600 Mar.1 22800 End Bal. 15400 Mar.31 200 Equipment 380 380 Date Debit Date Credit Beg.Bal. 380 23000 23000 Mar.1 22800 End.Bal. 22800 Beg.Bal. 15400 22800 22800 Common stock Note payable Beg.Bal. 22800 Date Debit Date Credit Date Debit Date Credit End.Bal. 50000 Mar.1 50000 Note payable (short term) 50000 50000 Date Debit Date Credit Beg.Bal. 50000 Office expense Mar.31 5000 Mar.1 5000 Date Debit Date Credit 5000 5000 Mar.31 910 Mar.31 910 0 Service revenue Date Debit Date Credit Rent expense Depreciation expense Mar.10 850 Date Debit Date Credit Date Debit Date Credit Mar.15 11560 Mar.3 1500 Mar.31 Mar.31 380 Mar.31 Mar.30 6890 1500 0 380 0 0 19300 Salaries and wages expense Supplies expense Interest expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.31 2500 Mar.31 Mar.31 695 Mar.31 Mar.31 25 Mar.31 Utility expense Income summary Date Debit Date Credit Date Debit Date Credit Mar.31 200 Mar.31 Answer c. Trial Balance Accounts Title Debits Credits Cash      43,160.00 Accounts Receivable      15,850.00 Supplies            470.00 Equipment      22,800.00 Accumulated Depreciation - Equipment            380.00 Common Stock      50,000.00 Notes Payable (Short Term)                     -   Accounts Payable      15,400.00 Service Revenue      19,300.00 Rent Expense        1,500.00 Interest Expense              25.00 Supllies Expense            695.00 Depreciation Expense            380.00 Utility Expense            200.00 Total      85,080.00      85,080.00

Answer d.
Rock Medical Company
Income Statement
Month Ended Mar 31
Revenues:
Service Revenue		19,300.00
Expenses
Rent Expense	1,500.00
Interest Expense	25.00
Supllies Expense	695.00
Depreciation Expense	380.00
Utility Expense	200.00
Total Expenses		2,800.00
Net Income (Loss)		16,500.00
Rock Medical Company
Statement of Retained Earnings
Month Ended Mar 31
Retained Earnings - Mar 1	-
Net Income (Loss)	16,500.00
Retained Earnings - June 30, 2018	16,500.00
Rock Medical Company
Balance Sheet
Mar 31
Assets
Current Assets
Cash	43,160.00
Accounts Receivable	15,850.00
Supplies	470.00
Total Current Assets		59,480.00
Property, Plant & Equipment
Equipment	22,800.00
Accumulated Depreciation - Equipment	(380.00)
Total Property, Plant & Equipment		22,420.00
Total Assets		81,900.00
Liabilities & Stockholders' Equity
Liabilities
Current Liabilities
Accounts Payable		15,400.00
Long-Term Liabilities		-
Total Liabilities		15,400.00
Stockholders' Equity
Common Stock	50,000.00
Retained Earnings	16,500.00
Total Stockholders' Equity		66,500.00
Total Liabilities & Stockholders' Equity		81,900.00 (e) Date Account title Debit Credit Mar.31 Service revenue 19300 Rent expense 1500 Office expense 910 Depreciation expense 380 Salaries and wages expense 2500 Supplies expense 695 Interest expense 25 Utility expense 200 Income summary 13090 (Closing entry for the month ) Service revenue Rent expense Depreciation expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.31 19300 Mar.10 850 Mar.3 1500 Mar.31 1500 Mar.31 380 Mar.31 380 Mar.15 11560 Mar.30 6890 1500 1500 380 380 19300 19300 Salaries and wages expense Supplies expense Interest expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.31 2500 Mar.31 2500 Mar.31 695 Mar.31 695 Mar.31 25 Mar.31 25 2500 2500 695 695 25 25 Utility expense Office expense Income summary Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.31 200 Mar.31 200 Mar.31 910 Mar.31 910 Mar.31 910 Mar.31 19300 Mar.31 1500 200 200 910 910 Mar.31 380 Mar.31 2500 Mar.31 695 Mar.31 25 Mar.31 200 End.Bal. 13090 19300 19300 (f) Rock Medical Company Trial balance as at March 31 Account Post Closing Debit Credit Cash 39750 Accounts receivable 15850 Supplies 470 Equipment 22800 Acumulated depreciation - equipment 380 Accounts payable 15400 Note payable (Short term) 0 Common stock 50000 Retained earnings 13090 Note payable 0 Service revenue Rent expense Office expense Salaries and wages expense Supplies expense Depreciation expense Interest expense Utility expense T O T A L 78870 78870