BRIEF EXERCISE $3\mathrm{.}2$ Record the following selected transactions in general journal form

for Sun Orthopedic Clinic Limited. Include a brief explanation of the transaction as part of each

journal entry.

$1$ Oct. The clinic issued $4,000$ additional shares to Doctor Soges at $$50$ per share.

$4$ Oct. The clinic purchased diagnostic equipment. The equipment cost $$75,000,$ of which

$$25,000$ was paid in cash; a note payable was issued for the balance.

$12$ Oct. Issued a check for $$9,000$ in full payment of an account payable to Zeller

Laboratories.

$19$ Oct. Purchased surgical supplies for $$2,600.$ Payment is not due until $28$ November.

$25$ Oct. Collected a $$24,000$ account receivable from Health One Insurance Company.

$30$ Oct. Declared and paid a $$300,000$ cash dividend to shareholders.

BRIEF EXERCISE $3\mathrm{.}3$ Brown Consulting Services organized as a corporation on $18$ January

and engaged in the following transactions during its first two weeks of operation:

$18$ Jan. Issued shares in exchange for $$30,000$ cash.

$22$ Jan. Borrowed $$20,000$ from its bank by issuing a note payable.

$23$ Jan. Paid $$100$ for a radio advertisement aired on $24$ January.

$25$ Jan. Provided $$1,000$ of services to clients for cash.

$26$ Jan. Provided $$2,000$ of services to clients on account.

$31$ Jan. Collected $$800$ cash from clients for the services provided on $26$ January.

a$.$ Record each of these transactions.

b$.$ Determine the balance in the Cash account on $31$ January. Be certain to state whether the

balance is debit or credit.

BRIEF EXERCISE $3\mathrm{.}4$ Five account classifications are shown as column headings in the table

below. For each account classification, indicate the manner in which increases and decreases are

recorded $($i$.$e$.,$ by debits or by credits$).$

BRIEF EXERCISE $3\mathrm{.}5$ Jackson Corporation's Retained Earnings account balance was

$$75,000$ on $1$ January. During January, the company recorded revenue of $$100,000,$ expenses of

$$60,000,$ and dividends of $$5,000.$ The company also purchased land during the period for $$20,000$

cash. Determine the company's Retained Earnings account balance on $31$ J$$nuary$.$

BRIEF EXERCISE $3\mathrm{.}6$ On $26$ May, Breeze Camp Ground paid KPRM Radio $$500$

cash for ten $30-$second advertisements. Two of the ads were aired in May, seven in June, and one

in July.

a$.$ Apply the recognition principle to determine how much advertising revenue KPRM Radio

earned from Breeze Camp Ground in May, June, and July.

b$.$ Apply the matching principle to determine how much advertising expense Breeze Camp

Ground incurred in May, June, and July.