Question

Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts.

Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.

Answer 1

Here are the journal entries for the transactions and how they should be posted to the T-accounts with transaction dates as posting references.

Step-by-step explanation:

Here are the journal entries for the transactions:

1. Jul. 1:
   - Debit: Cash $68,000
   - Credit: Common Stock $68,000
2. Jul. 5:
   - Debit: Rent Expense $510
   - Credit: Cash $510
3. Jul. 9:
   - Debit: Land $16,000
   - Credit: Cash $16,000
4. Jul. 10:
   - Debit: Office Supplies $1,600
   - Credit: Accounts Payable $1,600
5. Jul. 19:
   - Debit: Cash $26,000
   - Credit: Notes Payable $26,000
6. Jul. 22:
   - Debit: Accounts Payable $1,100
   - Credit: Cash $1,100
7. Jul. 28:
   - Debit: Advertising Expense $250
   - Credit: Accounts Payable $250
8. Jul. 31:
   - Debit: Cash $11,600 (revenues earned)
   - Debit: Accounts Receivable $5,300 (revenues earned on account)
   - Credit: Revenue $16,900
   - Debit: Salaries Expense $1,900
   - Debit: Office Rent Expense $1,400
   - Debit: Utilities Expense $600
   - Credit: Cash $4,900
9. Jul. 31:
   - Debit: Cash $1,340
   - Credit: Unearned Revenue $1,340
10. Jul. 31:
    - Debit: Dividends $6,900
    - Credit: Cash $6,900

The journal entries have been posted to the T-accounts with the appropriate transaction dates used as posting references. This helps keep track of the chronological order of the transactions.

Answer 2

July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.

Dr cash 68,000

Cr common stock 68,000

July 5. Paid monthly rent on medical equipment, $510.

Dr rent expense 510

Cr cash 510

July 9. Paid $16,000 cash to purchase land to be used in operations.

Dr land 16,000

Cr cash 16,000

July 10. Purchased office supplies on account, $1 ,600.

Dr office supplies 1,600

Cr accounts payable 1,600

July 19. Borrowed $26,000 from the bank for business use.

Dr cash 26,000

Cr notes payable 26,000

July 22. Paid $1,100 on account.

Dr accounts payable 1,100

Cr cash 1,100

July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.

Dr advertising expense 250

Cr accounts payable 250

July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.

Dr cash 6,300

Dr accounts receivable 5,300

Cr service revenue 11,600

July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.

Dr wages expense 1,900

Dr rent expense 1,400

Dr utilities expense 600

Cr cash 3,900

July 31. The business received $1 ,340 for medical screening services to be performed next month.

Dr cash 1,340

Cr unearned revenue 1,340

July 31. Paid cash dividends of $6,900.

Dr dividends 6,900

Cr cash 6,900

cash

debit credit

July 1 68,000

July 5 510

July 9 16,000

July 19 26,000

July 22 1,100

July 31 6,300

July 31 3,900

July 31 1,340

July 31 6,900

101,640

accounts receivable

debit credit

July 31 5,300

office supplies

debit credit

July 10 1,600

land

debit credit

July 9 16,000

accounts payable

debit credit

July 10 1,600

July 22 1,100

July 28 250

750

unearned revenue

debit credit

July 31 1,340

notes payable

debit credit

July 19 26,000

common stock

debit credit

July 1 68,000

service revenue

debit credit

July 31 11,600

rent expense

debit credit

July 5 510

July 31 1,400

advertising expense

debit credit

July 28 250

wages expense

debit credit

July 31 1,900

utilities expense

debit credit

July 31 600

dividends

debit credit

July 31 6,900