Question

1) Create a journal entry and a T-Account for each of the following transactions:

a)      $15,000 worth of equipment is purchased on credit.

b)      $40,000 of patient bills from last year are collected in cash.

c)      $10,000 is received from a managed care company for services to be rendered next year for members

d)      $20,000 worth of supplies is purchased and paid for in cash.

e)      $5,000 of accounts payable is paid in cash.

f)       $30,000 of cash is received from taking out a note with the local bank.

g)      $10,000 of accounts receivable from last year is received in cash.

Answer 1

Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
a.	Equipment	15,000.00
	Accounts Payable		15,000.00
	(record the purchase of equipment)
b.	Cash	40,000.00
	Accounts Receivable		40,000.00
	(record the cash recd of patient bills of last year)
c.	Cash	10,000.00
	Unearned Service Revenue		10,000.00
	(record the cash collected for serviced in advance)
d.	Supplies	20,000.00
	Cash		20,000.00
	(record the supplies purcahsed)
e.	Accounts Payable	5,000.00
	Cash		5,000.00
	(record the cash paid to accounts payable)
f.	Cash	30,000.00
	Notes Payable		30,000.00
	(record the amount borrowed from bank)
g.	Cash	10,000.00
	Accounts Receivable		10,000.00
	(record the cash recd.)

Cash					Equipment					Accounts Payable
b.	40,000.00	20,000.00	d.		a.	15,000.00				e.	5,000.00	15,000.00	a.
c.	10,000.00	5,000.00	e.
f.	30,000.00
g.	10,000.00
Accounts Receivable					Unearned Revenue					Supplies
		40,000.00	b.				10,000.00	c.		d.	20,000.00
		10,000.00	g.
Notes Payable
		30,000.00	f.