Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:

---

• Jul. 1 - York contributed $63,000 cash to the business in exchange for common stock.
•         5 - Paid monthly rent on medical equipment,$510.
•         9 - Paid $23,000 cash to purchase land to be used in operations.
•       10 - Purchased office supplies on account,$1,600.
•       19 - Borrowed $22,000 from the bank for business use.
•       22 - Paid$1,100 on account.
•       28 - The business received a bill for advertising in the daily newspaper to be paid in August, $240.
•       31 - Revenues earned during the month included$6,400 cash and $6,000 on account.
•       31 - Paid employees' salaries$2,200, office rent $1,900, and utilities$560. Record as a compound entry.
•       31 - The business received $1,120 for medical screening services to be performed next month.
•       31 - Paid cash dividends of$7,200.

---

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

1. Journalize each transaction. Explanations are not required.
2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vince York, M.D., as of July 31, 2018.

John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.

• Jan. 1 - The business received $34,000 cash and issued common stock to Daniel.
•        2 - Purchased medical supplies on account,$17,000.
•        4 - Performed services for patients receiving $1,600.
•      12 - Paid monthly office rent of$3,000.
•      15 - Recorded $7,000 revenue for services rendered to patients on account.

Journalize the transactions of John Daniel, M.D. Include an explanation with each entry.

Vincent Yarwood practices medicine under the business title Vincent Yarwood, M.D. During July, tl1e medical practice completed the following transactions:

Jul. 1. Yarwood contributed $68,000 cash to the business in exchange for common stock. 5. Paid monthly rent on medical equipment,$550. 9. Paid $17,000 cash to purchase land to be used in operations. 10. Purchased office supplies on account,$1,800. 19. Borrowed $24,000 from the bank for business use. 22. Paid$1,700 on account. 28. The business received a bill for advertising in the daily newspaper to be paid in August, $290. 31. Revenues earned during the month included$6,000 cash and $5,500 on account. 31. Paid employees' salaries$2,000, office rent $1,000, and utilities$550. Record as a compound entry. 31. The business received $1,260 for medical screening services to be performed next month. 31. Paid cash dividends of$7,400.

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.

The following procedures were recently installed by Raspberry Creek Company:

a. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. b. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer’s office for approval. c. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund. d. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. e. At the end of each day, all cash receipts are placed in the bank’s night depository. f. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank. g. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. h. The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

Instructions: Indicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness. For each weakness, indicate why it exists.

The trial balance as of July 31, 2018, for Sara Simon, Registered Dietician, is presented below:

$$\begin{array}{c} \textbf{SARA SIMON REGISTERED DIETICIAN}\\ \textbf{Trial Balance}\\ \textbf{July 31, 2018} \end{array}$$

$$\begin{array}{lrr} {\textbf{Account Title}}&\textbf{Debit}&\textbf{Credit}\\ \text{Cash}\hspace{20pt}&\text{\$\hspace{5pt}38,000}\\ \text{Accounts Receivable}&\text{9,000}\\ \text{Office Supplies}&\text{2,300}\\ \text{Prepaid Insurance}&\text{2,400}\\ \text{Equipment}&\text{16,000}\\ \text{Accounts Payable}&&\text{\$\hspace{10pt}3,000}\\ \text{Unearned Revenue}&&\text{3,912}\\ \text{Notes Payable}&&\text{31,000}\\ \text{Common Stock}&&\text{18,000}\\ \text{Dividends}&\text{2,800}\\ \text{Service Revenue}&&\text{17,888}\\ \text{Salaries Expense}&\text{1,700}\\ \text{Rent Expense}&\text{1,100}\\ \text{Utilities Expense}&\text{\underline{\hspace{23pt}500}}&\text{\underline{\hspace{38pt}}}\\ \text{Total}&\underline{\underline{\$\hspace{5pt}\text{73,800}}}&\underline{\underline{\$\hspace{5pt}\text{73,800}}}\\ \end{array}$$

Requirements

1. Prepare the income statement for the month ended July 31, 2018.
2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of retained earnings was SO.
3. Prepare the balance sheet as of July 31, 2018.
4. Calculate the debt ratio as of July 31, 2018.

The following transactions occurred for Lawrence Engineering:

• Jul. 2 - Received $14,000 contribution from Brett Lawrence in exchange for common stock.
•       4 - Paid utilit ies expense of$370.
•       5 - Purchased equipment on account, $1,600.
•     10 - Performed services for a client on account,$2,900.
•     12 - Borrowed $7,100 cash, signing a notes payable.
•     19 - Cash dividends of$200 were paid to stockholders.
•     21 - Purchased office supplies for $840 and paid cash.
•     27 - Paid the liability from July 5.

Journalize the transactions of Lawrence Engineering. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; N otes Payable; Common Stock; Dividends; Service Revenue; and Utilities Expense.

On December 1, Bob Wonder began an auto repair shop, Wonder's Quality Automotive. The following transactions occurred during December:

Dec. 1. Wonder contributed $55,000 cash to the business in exchange for shares of common stock.

1. Purchased$9,000 of equipment paying cash.
2. Paid $1,000 for a four-month insurance policy starting on December 1.
3. Paid$16,000 cash to purchase land to be used in operations.
4. Purchased office supplies on account, $2,900.
5. Borrowed$30,000 from the bank for business use. Wonder signed a note payable to the bank in the name of the corporation. The note is due in five years.
6. Paid $1,200 for advertising expenses.
7. Paid$500 on account.
8. The business received a bill for utilities to be paid in January, $230.
9. Revenues earned during the month included$20,500 cash and $3,300 on account.
10. Paid employees' salaries$3,100 and building rent $1,000. Record as a compound entry.
11. The business received$1,050 for auto screening services to be performed next month.
12. Cash dividends of $3,500 were paid to stockholders.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation-Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Common Stock; Retained Earnings; Dividends; Income Summary; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment.

Adjustment data: a. Office Supplies used during the month,$900. b. Depreciation for the month, $150. c. One month insurance has expired. d. Accrued Interest Expense,$75.

Requirements

1. Prepare the journal entries, and post to the T-accounts.
2. Prepare an unadjusted trial balance.
3. Complete the worksheet for the month ended December 31, 2016. (optional)
4. Prepare the adjusting entries, and post to the T-accounts.
5. Prepare an adjusted trial balance.
6. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
7. Prepare the closing entries, and post to the T-accounts.
8. Prepare a post-closing trial balance.

Deb Sikes started her practice as a design consultant on November I, 2017. During the first month of operations, the business completed the following transactions:

Nov. 1. Received $\$ 39.000$ cash and issued common stock to Sikes. 4. Purchased office supplies, $\$ 900$, and furniture, $\$ 1,800$, on account. Performed services for a law firm and received $\$ 2,000$ cash. 7. Paid $\$ 24,000$ cash to acquire land to be used in operations. 10. Performed services for a hotel and received its promise to pay the $\$ 1,200$ within one week. 14. Paid for the furniture purchased on November 4 on account. 15. Paid assistant's semimonthly salary, $\$ 1,410$. 17. Received cash on account, $\$ 1,000$. 20. Prepared a design for a school on account, $\$ 900$. 25. Received $\$ 2,100$ cash for design services to be performed in December. 28. Received $\$ 2,800$ cash for consulting with Plummer & Gordon. 29. Paid $\$ 1,080$ cash for a 12 -month insurance policy starting on December 1. 30. Paid assistant's semimonthly salary, $1,410. 30. Paid monthly rent expense,$\$800$. 30. Received a bill for utilities, $\$ 600$. The bill will be paid next month. 30. Paid cash dividends of $\$ 4,000$.

Requirements

1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Common Srock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are nor required.
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts, using transaction dares as posting references in the ledger accounts. Label the balance of each account Bal.
4. Prepare the trial balance of Deb Sikes, Designer, as of November 30, 2017.

Students in a high school statistics class were given data about the favorite sport to play for a group of 35 girls. They produced the following pictograph. Explain how this graph is misleading.

Ned Brown opened a medical practice in San Diego, California. Jan 1. The business received $29,000 cash and gave capital to Brown. 2. Purchased medical supplies on account,$14,000. 2. Paid monthly office rent of $2,600. 3. Recorded$8,000 revenue for service rendered to patients on account. Requirement

1. Record the preceding transactions in the journal of Ned Brown, M.D. Include an explanation with each entry.

Henderson Floor Coverings reported the following summarized data at December 31, 2016. Accounts appear in no particular order, and all have normal balances.

$$\begin{array}{lrlr} \text { Service Revenue } & \$ 38,000 & \text { Salaries Payable } & \$ 15,000 \\ \text { Equipment } & 45,000 & \text { Salaries Expense } & 1,800 \\ \text { Rent Expense } & 10,000 & \text { Cash } & 12,000 \\ \text { Common Stock } & 25,000 & \text { Accounts Receivable } & 4,000 \\ \text { Accounts Payable } & 1,500 & \text { Interest Payable } & 7,500 \\ \text { Dividends } & 12,900 & \text { Utilities Expense } & 1,300 \end{array}$$

Prepare the trial balance of Henderson Floor Coverings at December 31, 2016.

Raymond Autobody Shop has the following accounts:

Accounts Payable Service Revenue Cash Equipment Utilities Expense Common Stock Automotive Supplies Advertising Expense Dividends Unearned Revenue Retained Earnings

Create a chart of accounts for Raymond Autobody Shop using the standard numbering system. Each account is separated by a factor of 10. For example, the first asset account will be 100 and the next asset account will 110.

Aladdin Carpet Care had the following total assets, liabilities, and equity as of October 31:

$$\begin{array}{lrr} \hline\\ \text{Assets}&\text{\$\hspace{5pt}200,000}\\ \text{Liabilities}&\text{30,000}\\ \text{Equity}&\text{170,000}\\ \\\hline \end{array}$$

What is Aladdin Carpet Care's debt ratio as of October 31?

Write the letter of the best answer to each question.

What percent of $\$1,256.10$ is budgeted for entertainment and miscellaneous if $\$200.00$ is allotted? A $12\%$ B $16\%$ C $19\%$ D $20\%$