Alicia Hiram is a licensed dentist. During the first month of the operation of her business, the
Question:
Alicia Hiram is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.
April 1 Stockholders invested $40,000 cash in exchange for common stock.
1 Hired a secretary-receptionist at a salary of $600 per week payable monthly.
2 Paid office rent for the month $1,700.
3 Purchased dental supplies on account from Jennings Company $5,200.
10 Performed dental services and billed insurance companies $6,600.
11 Received $1,200 cash advance from Bob Carow for an implant.
20 Received $2,100 cash for dental services performed for Ryan Banks.
30 Paid secretary-receptionist for the month $2,400.
30 Paid $2,200 to Jennings Company for accounts payable due.
Alicia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable,
No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2015.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
a Date Account Titles and Explanation Ref Debit Credit Apr 1 Cash 101 40000 Common Stock 311 40000 Issued shares of stock for cash 1 No entrynot a transaction 2 Rent Expense 729 1700 Cash 101 1700 Pai...View the full answer
Financial Accounting
ISBN: 9781118334324
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
