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#Basic Accounting Problems and Solutions#

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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Alexa Lee
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334 views

#Basic Accounting Problems and Solutions#

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.

Uploaded by

Alexa Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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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