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Horngren'S Financial And Managerial Accounting
Found in: Page 107

Short Answer

Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Victor Yang practices medicine under the business title Victor Yang, M.D. During March, the medical practice completed the following transactions:

Mar. 1 Yang contributed $62,000 cash to the business in exchange for common stock.

5 Paid monthly rent on medical equipment, $570.

9 Paid $14,000 cash to purchase land to be used in operations.

10 Purchased office supplies on account, $1,500.

19 Borrowed $27,000 from the bank for business use.

22 Paid $1,400 on account.

28 The business received a bill for advertising in the daily newspaper to be paid in April, $220.

31 Revenues earned during the month included $6,700 cash and $5,800 on account.

31 Paid employees’ salaries $2,100, office rent $1,500, and utilities $350. Record as a compound entry.

31 The business received $1,000 for medical screening services to be performed next month.

31 Paid cash dividends of $7,100.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.

Requirements 3. Prepare the trial balance of Victor Yang, M.D., as of March 31, 2018.

The advertising payable is the amount of adverting expense incurred but not yet paid and the required trial balance is prepared with a total of $102,820

See the step by step solution

Step by Step Solution

Step-by-Step SolutionStep 1: Definition of Unearned Revenue

The Advertising payable is defined as the outstanding advertising expense of the business or company.

Step 2:Preparing Trial balance

Victor Yang

Trial Balance

March 31, 2018

Account Titles

Debit ($)

Credit ($)

Cash

$69,680

Accounts Receivables

$5,800

Office Supplies

$1,500

Land

$14,000

Accounts Payable

$100

Advertising Payable

$220

Unearned revenue

$1,000

Notes Payable

$27,000

Common stock

$62,000

Dividends

$7,100

Service Revenue

$12,500

Salaries Expense

$2,100

Rent expense

$2,070

Utilities expense

$350

Advertising Expense

$220

Total

$102,820

$102,820

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