Create a journal entry and a T-Account entry for each of the following transactions: a. $30,000 worth of supplies is

Question

Create a journal entry and a T-Account entry for each of the following transactions: a. $30,000 worth of supplies is purchased with cash. b. $10,000 worth of supplies is used to provide clients with goods and services. c. Wages due to employees that had been previously recorded as a liability are now paid in cash in the amount of $50,000. d. Bills are submitted to insurance companies in the amount of $90,000 for services rendered to patients. e. Cash payments of $60,000 are received for services previously provided and billed. f. $5,000 worth of additional supplies is purchased on account

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Answer: JOURNAL Date Account Head & Description Debit Amount Credit Amount a. Supplies 30000 Cash 30000 (to record the purchase of supplies) b. cost of goods sold 10000 Supplies 10000 (to record supplies used to provide clients with goods and services) c. Salary payable 50000 Cash 50000 (to record payment of salary payable) d. Accounts receivable 90000 Service revenue 90000 (to record the service revenue ) e. Cash 60000 Accounts receivable 60000 (to record the cash receipts from account receivable) f. Supplies 5000 Accounts payable 5000 (to record the purchase of supplies on credit) Cash Date $ Date $ e Accounts receivable 60000 a Supplies 30000 c Salary payable 50000 balance c/d 20000 80000 80000 Accounts Receivable Date $ Date $ d Service Revenue 90000 e Cash 60000 By Balance c/d 30000 90000 90000 Supplies Date $ Date $ a Cash 30000 b Cost of goods sold 10000 f Accounts payable 5000 By Balance c/d 25000 35000 35000 Accounts Payable Date $ Date $ f Supplies 5000 To Balance c/d 5000 5000 5000 Salary payable Date $ Date $ c. Cash 50000 Balance b/d 50000 50000 50000 cost of goods sold Date $ Date $ b Supplies 10000 Profit & loss account 10000 10000 10000 Service Revenue Date $ Date $ d Accounts Receivable 90000 To Profit & Loss account c/d 90000 90000 90000

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Create a journal entry and a T-Account entry for each of the following transactions: a

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Archived Solution

JOURNAL
Date	Account Head & Description	Debit Amount	Credit Amount
a.	Supplies	30000
	Cash		30000
	(to record the purchase of supplies)

b.	cost of goods sold	10000
	Supplies		10000
	(to record supplies used to provide clients with goods and services)

c.	Salary payable	50000
	Cash		50000
	(to record payment of salary payable)

d.	Accounts receivable	90000
	Service revenue		90000
	(to record the service revenue )

e.	Cash	60000
	Accounts receivable		60000
	(to record the cash receipts from account receivable)

f.	Supplies	5000
	Accounts payable		5000
	(to record the purchase of supplies on credit)

Cash
Date		$	Date		$
e	Accounts receivable	60000	a	Supplies	30000
			c	Salary payable	50000


	balance c/d	20000
		80000			80000

Accounts Receivable
Date		$	Date		$
d	Service Revenue	90000	e	Cash	60000

				By Balance c/d	30000
		90000			90000

Supplies
Date		$	Date		$
a	Cash	30000	b	Cost of goods sold	10000
f	Accounts payable	5000		By Balance c/d	25000
		35000			35000

Accounts Payable
Date		$	Date		$
			f	Supplies	5000

	To Balance c/d	5000
		5000			5000

Salary payable
Date		$	Date		$
c.	Cash	50000		Balance b/d	50000


		50000			50000

cost of goods sold
Date		$	Date		$
b	Supplies	10000

				Profit & loss account	10000
		10000			10000

Service Revenue
Date		$	Date		$
			d	Accounts Receivable	90000

	To Profit & Loss account c/d	90000
		90000			90000