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I need help solving this accounting problem today please... I have not much time left... thank you Problem 1: Recording transactions in the journal, posting
I need help solving this accounting problem today please... I have not much time left... thank you
Problem 1: Recording transactions in the journal, posting to T accounts and prepare a trial balance (78 points) Dr. Nevertis, MD., opened a health center named Nevertis Health Clinic, Inc. on December 1, 2021. The business transactions for December are shown below: Doc.1Doc.4Dec.9Doc.16Doc.21Doc.24billedonaccount(duein30days).Doc.27Doc.28Dr.Nevertisinvested$780,000cashinthebusinessinexchangefor1,000sharesofcapitalstock.Thecompanyrentedabuildingwherehesetupthehealthcenter.Medicalinstrumentswerepurchasedfor$85,000cash.Paid$4,800fora12-monthinsurancepolicyonthebuilding.OfficesuppliesexpectedtolastthemonthofDecemberwerepurchasedfor$3,200onaccount.Dr.Nevertisbilledpatients$53,000forservicesrendered.Ofthisamount,$40,000wasreceivedincash,and$13,000wasReceived$55,000asadvancedpaymentfromclientsforsurgicalworktobedoneinafuturedate.Received$11,000paymentonthe$13,000accountreceivablerecordedDecember24. Dec.30 Paid employees $3,500 for salaries earned in December. Doc.31 Declared and paid $9,000 dividend to stockholders. Dec.31 Adjusted and expensed the amount of insurance corresponding to the month of December. Doc.31 Income taxes expense for December totals \$12,000. Taxes will be paid in the first quarter of 2022. Instructions a. Prepare joumal entries to record the above transactions. (36 points, 3 points per entry) b. Post all entries in their corresponding T-accounts. ( 24 points) c. Prepare a Trial Balance dated 31 of December 2021. (15 points) d. Does the company appear to have enough liquidity? (3 points)Step by Step Solution
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