Question

B PROBLEMS 

P3-1B (L04,6,7) (Transactions, Financial Statements-Service Company) Listed below are the transactions of Rook Medical, for the month of March 

March I Rook begins practice as a family practitioner and invests $ 50,000 cash.

1 Purchase medical equipment on account from IK 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 Reserves cash of $850 from patients for services performed.

15 Bulls patients $ 11,560 for services performed

21 Pays IK Enterprises. on account serged

23 Withdraws $ 3,000 cash from the business for personal use

26 Receives $ 2 and 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. Medical supplies used during the month $695.

Instructions 

(a) Enter the transactions shown above inappropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable Supplies, Equipment, Accumulated Depreciation Equipment, Accounts Pay. able. Owner's Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense Supplies Expense, Depreciation Expense, and Income Summary. Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the other accounts needed. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account 

(b) Prepare a trial balance. 

(c) Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet 

(d) Close the ledger 

(e) Prepare a post-closing trial balance.

Answer 1