Share
Explore BrainMass

Accounting Concepts and Journal Entries

It is now July 31st. You are continuing to advise Dr. Leo Krusack on basic accounting procedures. His practice had the following transactions during July.

On July 1st, he paid out $1,200 in office rent for the month of July.

He purchased a new dental chair for $1,300 cash on July 6th.

On July 10th, he purchased $2,000 worth of dental supplies on account.

He used $1,300 worth of dental supplies in July.

On July 10th, he paid an electric bill for $250

On July 12th, he paid $75 to place an ad in the local newspaper.

He paid out $1,500 in wages to his hygienist on July 15th and 31st.

On July 18th, he withdrew $250 for personal expenses.

On July 25th, he received an electric bill for $287, which he will pay in August.

By July 31st, the practice had received $7,710 in cash payments for services rendered in June.

By July 31st, his practice had received $4,340 in cash from and billed $7,560 to patients for services rendered during July.

Show how each transaction would be handled using the accrual basis of accounting. Give the amount of revenue or expense for July. Journal entries are not required. Use the following format for your answer. Show your calculations.

Amount of Revenue (Expense) for July 200_
Date-- Revenue (Expense)-- Accrual-Basis Amount

Compute July net income (loss) under the accrual basis of accounting.

Solution Preview

It is now July 31st. You are continuing to advise Dr. Leo Krusack on basic accounting procedures. His practice had the following transactions during July.

On July 1st, he paid out $1,200 in office rent for the month of July.

He purchased a new dental chair for $1,300 cash on July 6th.

On July 10th, he purchased $2,000 worth of dental ...

Solution Summary

This discusses the ways to prepare Journal entries

$2.19