Prepare journal entries for the following transactions. Please provide explanations and skip a line after each transaction. refer to the Chart of Accounts on the next page

Jan. 5 - Owner invested the following:Cash = $20,000.00, Computer = $6,000.00 and Office Furniture = $14,000.00.

Jan. 10 - Purchased Office Equipment worth $1,800.00, and paid $600.00 in cash, the balance on account.

Jan. 14 - Rendered services worth $9,300.00, and received $2,000.00 in Cash, the balance on account.

Jan. 18 - Wrote a check to pay the telephone bill for $500.00

Jan. 20 - Paid employees salaries, $1,700.00 for the pay period.

Jan. 25 - Made a $200.00 partial payment on the Office Equipment purchased on Jan. 10.

Jan. 28 - Owner withdrew $1,300.00 cash for personal use.

Jan. 31 - Paid rent for the month, $3,000.00

ASSETS

Account No.

Account Names

Type

QuickBooks

GAAP

1001

Cash

Bank

Current Assets

1005

Petty Cash

Bank

Current Assets

1010

Accounts Receivable

Accounts Receivable

Current Assets

1015

Medical Supplies

Other Current Asset

Current Assets

1020

Office Supplies

Other Current Asset

Current Assets

1025

Prepaid Insurance

Other Current Asset

Current Assets

1030

Medical Equipment

Fixed Assets

Fixed Assets

1030.5

Accumulated Depreciation, Med. Eqpt.

Fixed Assets

Contra Account

1035

Office Equipment

Fixed Assets

Fixed Assets

1035.5

Accumulated Depreciation, Off. Eqpt.

Fixed Assets

Contra Account

1040

Furniture & Fixtures

Fixed Assets

Fixed Assets

1040.5

Accumulated Depreciation, Furn. & Fixt.

Fixed Assets

Contra Account

LIABILITIES

2001

Accounts Payable

Accounts Payable

Current Liabilities

2005

Wages Payable

Other Current Liability

Current Liabilities

2010

Unearned Revenue

Other Current Liability

Current Liabilities

2013

Interest Payable

Other Current Liability

Current Liabilities

2015

Payroll Liabilities

Other Current Liability

Current Liabilities

(Already set up by QB. Do not set up again. Just edit later to include the account number.)

2020

Notes Payable

Long-Term Liability

Long-Term Liabilities

OWNER'S EQUITY

3001

Your Name, Capital

(QB has set up Owner's Equity. Just edit later.)

Equity

Equity

3002

Your Name, Draw

(QB has set up Owner's Draw. Just edit later.)

Equity

Equity

**

Opening Bal. Equity

Equity

Clearing Account

(Already set up by QB.)

***

Retained Earnings

Equity

Equity

REVENUE OR INCOME

4001

Professional Fees

Income

Revenue or Income

4005

Interest Income

Other Income

Other Revenue or Other Income

EXPENSES

5001

Advertising Expense

Expense

Expense

5005

Automobile Expense

Expense

Expense

5010

Bank Service Charges Expense

Expense

Expense

5015

Depreciation Expense, Med. Eqpt.*

Expense

Expense

5016

Depreciation Expense, Off. Eqpt.*

Expense

Expense

5017

Depreciation Expense, Furn. & Fixt.*

Expense

Expense

5020

Equipment Rental Expense

Expense

Expense

5025

Insurance Expense *

Expense

Expense

5030

Licenses & Permits Expense

Expense

Expense

5040

Postage & Delivery Expense

Expense

Expense

5045

Rent Expense

Expense

Expense

5050

Repairs Expense

Expense

Expense

5055

Supplies Expense - Medical *

Expense

Expense

5060

Supplies Expense - Office *

Expense

Expense

5065

Telephone Expense

Expense

Expense

5070

Utilities Expense

Expense

Expense

5075

Payroll Expenses

Expense

Expense

(Already set up by QB.)

5080

Interest Expense

Other Expense

Other Expense

Given the following accounts randomly arranged and showing normal balances, prepare:

1. Profit and Loss Statement for the year ended Dec. 31, (yr)
2. Balance Sheet as of Dec. 31, (yr)

(Please observe proper presentation, arranging the accounts accordingly. Refer to the lecture on proper presentation of the financial statements for full credit.)

XYZ COMPANY

TRIAL BALANCE

DEC. 31, (yr)

Office Supplies

$ 985.00

Prepaid Rent

1,200.00

Cash

5,025.00

Unearned Revenue

950.00

Accounts Receivable

3,850.00

Accounts Payable

4,500.00

Office Furniture

6,800.00

Equipment

8,700.00

Accumulated Depreciation, Off. Furn.

234.00

Accumulated Depreciation, Equipment

457.00

UtilitiesExpense

600.00

Notes Payable - Long Term

10.000.00

DepreciationExpense

691.00

Wages Payable

420.00

Professional Fees

7,500.00

Owner, Drawing

200.00

Owner, Capital (Beginning Capital)

7,765.00

Wages Expense

2,400.00

Rent Expense

1,000.00

Office Supplies Expense

375.00