Question

Date	Accounts involved in transaction?	Classification of the account?	Increasing or Decreasing?	Debit or Credit the Account?	Amount?
Ye
7/1	Cash	Asset	Increasing	Debit	$           63,000
	York, Capital	Capital	Increasing	Credit	$           63,000
7/5
7/9	Cash
7/10
7/19
7/22
7/28	Accounts Payable
7/31	This is a compound entry.
7/31	This is a compound entry.
7/31
7/31 P2-29A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions: Jul. 1 Yung contributed $63,000 cash to the business in exchange for capital. 5 Paid monthly rent on medical equipment, $510. 9 Paid $23,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $1,600. 19 Borrowed $22,000 from the bank for business use. Yung signed a note payable to the bank in the name of the business. 22 Paid $1,100 on account. 28 The business received a bill for advertising in the daily newspaper to be paid in August, $240. 31 Revenues earned during the month included $6,400 cash and $6000 on account. 31 Paid employees’ salaries $2,200, office rent $1,900, and utilities, $560. Record as a compound entry. 31 The business received $1,120 for medical screening services to be performed next month. 31 Yung withdrew cash of $7,200. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yung, Capital; Yung, 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 Vernon Yung, M.D. as of July 31, 2015.

Answer 1

Answer
Q1. Journalising the transactions
Date	Particulars	Debit	Credit
July 01	Cash	63000
	Yung, Capital		63000
July 5	Rent Expense	510
	Cash		510
July 9	Land	23000
	Cash		23000
July 10	Office Supplies	1600
	Accounts Payable		1600
July 19	Cash	22000
	Notes Payable		22000
July 22	Accounts Payable	1100
	Cash		1100
July 28	Advertising Expense	240
	Advertising Payable		240
July 31	Cash	6400
	Accounts receivable	6000
	Service Revenue		12400
July 31	Salaries Expense	2200
	Rent Expense	1900
	Utilities Expense	560
	Cash		4660
July 31	Cash	1120
	Unearned Revenue		1120
July 31	Yung, Withdrawals	7200
	Cash		7200
Q2. Posting to T-accounts
Date	Particulars	Amount	Date	Particulars	Amount
Cash
July 01	Yung, Capital	63000	July 5	Rent Expense	510
July 19	Notes Payable	22000	July 9	Land	23000
July 31	Service Revenue	6400	July 22	Accounts Payable	1100
July 31	Unearned Revenue	1120	July 31	Salaries Expense	2200
			July 31	Rent Expense	1900
			July 31	Utilities Expense	560
			July 31	Yung, Withdrawals	7200
			July 31	Closing Balance	56050
		92520			92520
Accounts receivable
July 31	Accounts receivable	6000
			July 31	Closing Balance	6000
		6000			6000
Note: The other t-accounts will come in the same format and can copy dorectly from journals.
Q3. Trial balance of Vernon Yung, M.D. as of July 31, 2015
Sl No	Particulars	Debit	Credit
1	Cash	56050
2	Accounts receivable	6000
3	Office Supplies	1600
4	Land	23000
5	Accounts Payable		500
6	Advertising Payable		240
7	Unearned Revenue		1120
8	Notes Payable		22000
9	Yung, Capital		63000
10	Yung, Withdrawals	7200
11	Service revenue		12400
12	Salaries Expense	2200
13	Rent Expense	2410
14	Utilities Expense	560
15	Advertising Expense	240
		99260	99260