Answer:
Vernon Yung, M.D.
1. Journal Entries:
Jul. 1 Debit Cash $68,000
Credit Common stock $68,000
Jul. 5 Debit Rent Expense $520
Credit Cash $520
Jul. 9 Debit Land $20,000
Credit Cash $20,000
Jul. 10 Debit Office supplies $1,700
Credit Accounts payable $1,700
Jul. 19 Debit Cash $20,000
Credit Notes Payable $20,000
Jul. 22 Debit Accounts payable $1,100
Credit Cash $1,100
Jul. 28 Debit Advertising expense $200
Credit Advertising payable $200
Jul. 31 Debit Cash $6,200
Debit Accounts receivable $5,600
Credit Service Revenue $11,800
Jul. 31 Debit Salaries expense $2,900
Debit Office rent expense $700
Debit Utilities expense $250
Credit Cash $3,850
Jul. 31 Debit Cash $1,190
Credit Deferred revenue $1,190
Jul. 31 Debit Dividends $7,300
Credit Cash $7,300
2. T- accounts:
Cash
Date Account Titles Debit Credit
Jul. 1 Common stock $68,000
Jul. 5 Rent Expense $520
Jul. 9 Land 20,000
Jul. 19 Notes payable 20,000
Jul. 22 Accounts payable 1,100
Jul. 31 Service revenue 6,200
Jul. 31 Salaries expense 2,900
Jul. 31 Rent expense 700
Jul. 31 Utilities expense 250
Jul. 31 Deferred revenue 1,190
Jul. 31 Dividends 7,300
Jul. 31 Balance $62,620
Accounts receivable
Date Account Titles Debit Credit
Jul. 31 Service revenue $5,600
Common stock
Date Account Titles Debit Credit
Jul. 1 Cash $68,000
Service Revenue
Date Account Titles Debit Credit
Jul. 31 Cash $6,200
Jul. 31 Accounts receivable 5,600
Jul. 31 Balance $11,800
Rent Expense
Date Account Titles Debit Credit
Jul. 5 Cash $520
Jul. 31 Cash 700
Jul. 31 Balance $1,220
Advertising Expense
Date Account Titles Debit Credit
Jul. 28 Advertising payable $200
Salaries expense
Date Account Titles Debit Credit
Jul. 31 Cash $2,900
Utilities
Date Account Titles Debit Credit
Jul. 31 Cash $250
Land
Date Account Titles Debit Credit
Jul. 9 Cash $20,000
Office supplies
Date Account Titles Debit Credit
Jul. 10 Accounts payable $1,700
Accounts payable
Date Account Titles Debit Credit
Jul. 10 Office supplies $1,700
Jul. 22 Cash $1,100
Jul. 31 Balance 600
Notes payable
Date Account Titles Debit Credit
Jul. 19 Cash $20,000
Advertising payable
Date Account Titles Debit Credit
Jul. 28 Advertising expense $200
Deferred revenue
Date Account Titles Debit Credit
Jul. 31 Cash $1,190
Dividends
Date Account Titles Debit Credit
Jul. 31 Cash $7,300
3. Vernon Yung, M.D.
Trial Balance as of July 31, 2018
Account Titles Debit Credit
Cash $62,620
Accounts receivable 5,600
Common stock $68,000
Service revenue 11,800
Accounts payable 600
Notes payable 20,000
Advertising payable 200
Deferred revenue 1,190
Rent expense 1,220
Advertising expense 200
Salaries expense 2,900
Utilities expense 250
Land 20,000
Office supplies 1,700
Dividends 7,300
Totals $101,790 $101,790
Explanation:
a) Data and Analysis:
Jul. 1 Cash $68,000 Common stock $68,000
Jul. 5 Rent Expense $520 cash $520
Jul. 9 Land $20,000 Cash $20,000
Jul. 10 Office supplies $1,700 Accounts payable $1,700
Jul. 19 Cash $20,000 Notes Payable $20,000
Jul. 22 Accounts payable $1,100 Cash $1,100
Jul. 28 Advertising expense $200 Advertising payable $200
Jul. 31 Cash $6,200 Accounts receivable $5,600 Service Revenue $11,800
Jul. 31 Salaries expense $2,900 Office rent expense $700 Utilities expense $250 Cash $3,850
Jul. 31 Cash $1,190 Deferred revenue $1,190
Jul. 31 Dividends $7,300 Cash $7,300
