Jul. 1 Yang contributed $68,000 cash to the business in exchange for common stock. Jul. 5 Paid monthly rent on medical equipment, $520.
Jul. 9 Paid $20,000 cash to purchase land to be used in operations.
Jul. 10 Purchased office supplies on account, $1,700.
Jul. 19 Borrowed $20,000 from the bank for business use.
Jul. 22 Paid $1,100 on account.
Jul. 28 The business received a bill for advertising in the daily newspaper to be paid in August, $200.
Jul. 31 Revenues earned during the month included $6,200 cash and $5,600 on account.
Jul. 31 Paid employees' salaries $2,900, office rent $700, and utilities $250. Record as a compound entry.
Jul. 31 The business received $1,190 for medical screening services to be performed next month.
Jul. 31 Paid cash dividends of $7,300.

Required:
a. Journalize each transaction. Explanations are not required.
b. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts.
c. Prepare the trial balance of Vernon Yung, M. D. as of July 31, 2018.

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

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