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    #Basic Accounting Problems and Solutions#

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    Alexa Lee
    Ms. Lia opened a dental clinic in August 2016. She invested cash into the business and purchased various assets like land, buildings, medical instruments, office equipment, and supplies. She also billed patients for services and paid employee salaries. Journal entries were made for each transaction, debiting the asset or expense accounts and crediting cash or a revenue account.

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    #Basic Accounting Problems and Solutions#

    Uploaded by

    Alexa Lee
    224 views1 page
    Ms. Lia opened a dental clinic in August 2016. She invested cash into the business and purchased various assets like land, buildings, medical instruments, office equipment, and supplies. She also billed patients for services and paid employee salaries. Journal entries were made for each transaction, debiting the asset or expense accounts and crediting cash or a revenue account.

    Original Title

    #BASIC ACCOUNTING PROBLEMS AND SOLUTIONS#

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    Ms. Lia opened a dental clinic in August 2016. She invested cash into the business and purchased various assets like land, buildings, medical instruments, office equipment, and supplies. She also billed patients for services and paid employee salaries. Journal entries were made for each transaction, debiting the asset or expense accounts and crediting cash or a revenue account.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    224 views1 page

    #Basic Accounting Problems and Solutions#

    Uploaded by

    Alexa Lee
    Ms. Lia opened a dental clinic in August 2016. She invested cash into the business and purchased various assets like land, buildings, medical instruments, office equipment, and supplies. She also billed patients for services and paid employee salaries. Journal entries were made for each transaction, debiting the asset or expense accounts and crediting cash or a revenue account.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    BASIC ACCOUNTING PROBLEMS AND SOLUTIONS

    Ms. Lia opened a dental clinic on August 2016. The business transactions for August are
    shown below:
    1. Ms. Lia invested 280,000 cash in the business in exchange for shares of capital stock.
    2. Land and building was purchased for 400,000. Of this amount 60,000 applied to land
    and 340,000 to the building.

    3. Medical instruments were purchased for 75,000.


    4. Office equipment and furniture’s were purchased for 25,000.

    5. Office supplies were purchased for the 4,200.


    6. Ms. Lia billed patients 13,000 for services provided

    7. Paid employees 2200 for salaries earned in august.

    Requirement
    Prepare Journal Entries for each transaction for August 2016.

    1. Cash 280,000
    Capital 280,000
    2. Land and Building 400,000
    Cash 400,000
    3. Medical Instruments 75,000
    Cash 75,000
    4. Office Equipment and furniture 25,000
    Cash 25,000
    5. Supplies 4,200
    Cash 4,200
    6. Accounts Receivable 13,000
    Medical Services 13,000
    7. Salaries Expense 2,200
    Cash 2,200

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