Exercise for chapter Exercise Dr JJ has been practicing as a family doctor for three years Dr JJ’s account balances as of April 20X0 (all normal balances) are listed as follows: Account Balance ($) Cash 4,123 Account Receivable 6,725 Supplies 290 Prepaid Insurance 465 Equipment 19,745 Account Payable 765 Capital 30,583 During April,20X0, Dr JJ completed the following transactions: April Paid office rent for April, $800 Purchased equipment on account, $2,100 Received cash from patients who owe the business, $3,150 Purchased medicine and other supplies on account, $245 One of the items of equipment purchased on April was defective It was returned with the permission of the supplier, who agreed to reduce the account for the amount of the item, $325 12 Paid cash to creditors, $1,250 17 Paid cash for renewal of a six-month property insurance policy, $370 20 Discovered that the balances of the Cash Account and the Accounts Payable as of April were overstated by $200 A payment of that amount to a creditor in March has not been recorded Journalise the $200 payment as of April 20 24 Paid cash for laboratory tests, $545 27 Paid cash from business Bank Account for personal and family expenses, $1,250 30 Recorded the cash received in payment of services to patients during April, $1,720 30 Paid salaries of receptionist and nurses, $1,725 30 Paid various utility expenses, $360 30 Recorded fees charged to patients on account for services performed in April, $5,145 30 Paid miscellaneous expenses, $132 Requirements: i ii Journalise the transactions during April 20X0 Determine the balances of accounts at the end of April 20X0 Exercise Lolita S., an architect, opened an office on March of the current year During the month, she completed the following transactions connected with her practice: a Transferred cash from a personal bank account to an account to be used for the business, $15,000 b Paid March rent for office and workroom, $2,000 c Purchased used car for $11,500, paying $2,500 cash and took a bank loan for the remainder d Purchased office and computer equipment on account, $5,500 e Paid cash for supplies, $750 f Paid cash for annual insurance policies, $1,050 g Received cash form client for plans delivered, $3,100 h Paid cash for miscellaneous expenses, $75 i j k l m n Paid cash to creditors, $2,950 Paid instalment due on the bank loan, $400 Received invoice for printing service, due in April, $525 Recorded fee earned on plans delivered, payment to be received in April, $4,150 Paid salaries of assistant, $1,200 Paid petrol and repairs on car for March, $150 Requirement: Journalise the transactions during the month Exercise On June of the current year, Adam established an interior decorating business, AA Designs During the remainder of the month, Adam completed the following transactions related to the business: June Adam transferred cash from a personal bank account to an account to be used for the business, $18,000 Paid rent for period of June to end of the month, $2,000 Purchased office equipment on account, $10,500 Purchased a used truck for $18,000, paying $10,000 cash and taking a bank loan for the remainder 10 Purchased supplies for cash $1,315 12 Received cash for job completed, $7,300 20 Paid annual premium on property insurance, $1,200 23 Recorded jobs completed on account and sent invoices to customers, $4,950 24 Received an invoice for truck expenses, to be paid in July, $450 29 Paid utilities expense, $750 29 Paid miscellaneous expense, $210 30 Received cash from customers who owe, $2,200 30 Paid salaries of employees, $3,000 30 Paid creditor a portion of the amount owed for equipment purchased on June 7, $1,800 30 Withdrew cash for personal use, $3,500 Requirement: Journalise the transactions during the month