Deck 7: Recording Financial Information

Question 1

Create a journal entry and a T-Account for each of the following transactions:
a) $15,000 worth of equipment is purchased on credit.
b) $40,000 of patient bills from last year are collected in cash.
c) $10,000 is received from a managed care company for services to be rendered next year for members
d) $20,000 worth of supplies is purchased and paid for in cash.

Answer 1

a) b) c) d)

Question 2

Create a journal entry and a T-Account for each of the following transactions:
a) $5,000 of accounts payable is paid in cash.
b) $30,000 of cash is received from taking out a note with the local bank.
c) $10,000 of accounts receivable from last year is received in cash.
d) $7,000 is paid back on the borrowed note.

Answer 2

a) b) c) d)