Following is the chart of accounts of the C. Lucern Clinic: Assets 111 Cash 113 Accounts Receivable

Question:

Following is the chart of accounts of the C. Lucern Clinic:

Assets

111 Cash

113 Accounts Receivable

115 Supplies

117 Prepaid Insurance

124 Equipment

Liabilities

221 Accounts Payable Owner’s Equity

311 C. Lucern, Capital

312 C. Lucern, Drawing

Revenue

411 Professional Fees

Expenses

511 Salary Expense

512 Rent Expense

513 Laboratory Expense

514 Utilities Expense

Dr. Lucern completed the following transactions during July:

July 1 Bought laboratory equipment on account from Laser Surgical Supply Company, $ 3,660, paying $ 1,660 in cash and placing the remainder on account, Ck. No. 1730.

3 Paid the office rent for the current month, $ 1,300, Ck. No. 1731.

5 Received cash on account from patients, $ 360.

6 Bought supplies on account from McRae Supply Company, $ 315, Inv. No. 3455.

7 Received and paid the bill for laboratory services, $ 1,380, Ck. No. 1732.

8 Bought insurance for one year, $ 2,650, CK. No. 1733. 12 Performed medical services for patients on account, $ 5,886.

15 Performed medical services for patients for cash, $ 4,793.

16 The equipment purchased on July 1 was found to be broken. Dr. Lucern returned the damaged part and received a reduction in his bill, $ 518, Inv. No. 3162, Credit Memo No. 141. (Credit Equipment.)

18 Paid the salary of the part- time nurse, $ 2,100, Ck. No. 1734.

24 Received and paid the telephone bill for the month, $ 624, Ck. No. 1735.

28 Performed medical services for patients on account, $ 7,381.

29 Dr. Lucern withdrew cash for his personal use, $ 2,000, Ck. No. 1736.

Required

1. Journalize the transactions for July in the general journal, beginning on page 21.

2. Write the name of the owner next to the Capital and Drawing accounts in the general ledger. The balances of the accounts as of June 30 have been recorded in the general ledger in your Working Papers or in CengageNow. Notice the word Balance in the Item column, the check mark in the Post. Ref. column and the fact that the amount is in the Balance column only. This indicates a balance brought forward from a prior page or month.

3. Post the entries to the general ledger accounts.

4. Prepare a trial balance.

Accounts Payable
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...