74

Chapter 2

Analyzing Transactions

Apr. 17.
20.

24.
27.
30.
30.
30.
30.
30.

Paid cash for renewal of a six-month property insurance policy, $370.

Discovered that the balances of the cash account and the accounts payable
account as of April 1 were overstated by $200. A payment of that amount
to a creditor in March had not been recorded. Journalize the $200 payment
as of April 20.
Paid cash for laboratory analysis, $545.
Paid cash from business bank account for personal and family expenses,
$1,250.
Recorded the cash received in payment of services (on a cash basis) to patients during April, $1,720.
Paid salaries of receptionist and nurses, $1,725.
Paid various utility expenses, $360.
Recorded fees charged to patients on account for services performed in
April, $5,145.
Paid miscellaneous expenses, $132.

Outzs account titles, numbers, and balances as of April 1 (all normal balances) are
listed as follows: Cash, 11, $4,123; Accounts Receivable, 12, $6,725; Supplies, 13, $290;
Prepaid Insurance, 14, $465; Equipment, 18, $19,745; Accounts Payable, 22, $765; J. F.
Outz, Capital, 31, $30,583; J. F. Outz, Drawing, 32; Professional Fees, 41; Salary Expense,
51; Rent Expense, 53; Laboratory Expense, 55; Utilities Expense, 56; Miscellaneous
Expense, 59.

Instructions
1. Open a ledger of standard four-column accounts for Dr. Outz as of April 1. Enter
the balances in the appropriate balance columns and place a check mark () in the
Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.)
2. Journalize each transaction in a two-column journal.
3. Post the journal to the ledger, extending the month-end balances to the appropriate balance columns after each posting.
4. Prepare an unadjusted trial balance as of April 30.