1. Analyze the following business transactions of Dr. Who Clinic, a sole proprietorship.

Record the
transactions in the journal by following the rules of debits and credits.

Use the following account titles: Cash, Accounts Receivable, Prepaid Insurance, Furniture and Fixtures,
Computers, Accounts Payable, Notes Payable, Dr. Who, Capital, Dr. Who, Drawing, Professional Fees,
Salaries Expense, Rent Expense, Utilities Expense, and Organization Expense.

Jan 1, 2014 – Dr. Who invested P100 000 into the business.

Jan 3, 2014 – Dr. Who paid P7 500 to city hall for a business permit.

Jan 5, 2014 – Dr. Who paid P10 000 for a one-year insurance.

Jan 10, 2014 – Dr. Who purchased computer equipment amounting to P20 000 for the clinic.

Jan 11, 2014 – Dr. Who acquired furniture and fixtures on account amounting to P15 000.

Jan 15, 2014 – Dr. Who borrowed P30 000 from the bank by signing a note.

Jan 17, 2014 – Dr. Who rendered professional service to various patients and received P35 000 cash.

Jan 20, 2014 – Dr. Who rendered professional service to various patients. The total bill of these patients
amounted to P21 000. These patients had no cash with them and promised to pay Dr. Who on January
30, 2014.

Jan 30, 2014 – Dr. Who collected P21 000 from various patients who owed him money in entry#8.

Jan 31, 2014 – Dr. Who paid P10 000 for rent, P2 500 for utilities, and P15 000 for salaries of employees.

Jan 31, 2014 - Dr. Who withdrew P3 000 from the business for his personal use.

2. Post the journal entries to the ledger accounts. Use the following codes – Cash (101), Accounts
Receivable (111), Prepaid Insurance (131), Furniture and Fixtures (145), Computers (150),
Accounts Payable (201), Notes Payable (212), Dr. Who, Capital ( 300), Dr. Who, Drawing (301),
Professional Fees (406), Salaries Expense (611), Rent Expense (615), Utilities Expense (621), and
Organization Expense (625).
3. Prepare the trial balance.