Warren Smith pracitces medicine under the business title Warren Smith, M.D. During April, the medical practice completed the following transactions:
April 1 Smith deposited $78,000 cash in the business bank account. The business gave capital to Smith.
April 5 Paid monthly rent on medical equipment, $780.
April 9 Paid $18,000 cash to purchase land for an office site.
April 10 Purchased supplies on account, $1,200.
April 19 Borrowed $20,000 from the bank for business use. Smith signed a note payable to the bank in the name of the business.
April 22 Paid $800 on account.
April 30 Revenues earned during the month included $5,900 cash and $4,900 on account.
April 30 Paid employees’ salaries $2,000, office rent $1,800, and utilities $420. Make a single compound entry.
April 30 Owner withdrew $9,000.
1. Journalize each transaction. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting referneces in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balanace of Warren Smith, M.D., at April 30, 2010.
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