Quiz

TLE-9
Journalizing transactions

Dr. John Travolta opened a medical clinic in Toril, Davao City to serve his constituents in the area. Record the transactions during the
first month of its operation using the given chart of accounts:

CHART OF ACCOUNTS

Assets Owner’s Equity

Cash on Hand John Travolta , Capital
Medical supplies John Travolta, Drawing
Medical equipment
Income
Medical Fees Income
Liabilities
Accounts Payable
Expenses
Salaries expense
Taxes and licenses
Utilities expense
Transactions:

Nov 1 - Dr. John invested cash amounting to 850,000 cash.

2 - Bought medical equipment from G-Mall Toril amounting to 650,000.
3 - Bought medical supplies on account from Amesco worth 90,000.
4 - The doctor withdrew for his personal use, 10,000.
5 - Medical fees income earned for the 1st week cash 50,000
6 - Paid the following expenses : Taxes and Licenses – 10,000; Salaries of attendants –
55,000; and utilities Expense – 30,000.