1 Create a journal entry and a TAccount for each of the foll

1) Create a journal entry and a T-Account for each of the following transactions: a) $15,000 worth of equipment is purchased on credit. b) $40,000 of patient bills from last year are collected in cash. c) $10,000 is received from a managed care company for services to be rendered next year for members d) $20,000 worth of supplies is purchased and paid for in cash. e) $5,000 of accounts payable is paid in cash. f) $30,000 of cash is received from taking out a note with the local bank. g) $10,000 of accounts receivable from last year is received in cash. h) $7,000 is paid back on the borrowed note.

Solution

Journal Entry No                General Journal                     Debit Credit a) Equipment 15,000 Accounts payable 15,000 b) Cash 40,000 Account receivable 40,000 c) Cash 10,000 unearned service revenue 10,000 d) Supplies 20,000 cash 20,000 e) Accounts payable 5,000 cash 5,000 f) Cash 30,000 notes payable 30,000 g) Cash 10,000 Accounts receivable 10,000 h) Notes payable 7,000 cash 7,000 T- Accounts Equipment a) 15,000 Bal 15,000 Accounts payable e) 5,000 a) 15,000 bal 10,000 Account receivable b) 40,000 g) 10,000 bal 50,000 unearned service revenue c) 10,000 bal 10,000 Cash b) 40,000 d) 20,000 c) 10,000 e) 5,000 f) 30,000 h) 7,000 g) 10,000 Bal 58000 Supplies d) 20,000 bal 20,000 Notes payable h) 7,000 f) 30,000 bal 23,000