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.

Solution

Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Equipment    15,000.00 Accounts Payable    15,000.00 (record the purchase of equipment) b. Cash    40,000.00 Accounts Receivable    40,000.00 (record the cash recd of patient bills of last year) c. Cash    10,000.00 Unearned Service Revenue    10,000.00 (record the cash collected for serviced in advance) d. Supplies    20,000.00 Cash    20,000.00 (record the supplies purcahsed) e. Accounts Payable      5,000.00 Cash      5,000.00 (record the cash paid to accounts payable) f. Cash    30,000.00 Notes Payable    30,000.00 (record the amount borrowed from bank) g. Cash    10,000.00 Accounts Receivable    10,000.00 (record the cash recd.) Cash Equipment Accounts Payable b.    40,000.00    20,000.00 d. a.    15,000.00 e.      5,000.00    15,000.00 a. c.    10,000.00      5,000.00 e. f.    30,000.00 g.    10,000.00 Accounts Receivable Unearned Revenue Supplies    40,000.00 b.    10,000.00 c. d.    20,000.00    10,000.00 g. Notes Payable    30,000.00 f.