PART-I- Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance (20 Marks).
Abreham Zeleke practices medicine under the business title Abreham, M. D. During July 2020, the
medical practice completed the following transactions:
July 1 Abreham contributed Br.63,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, Br.510.
9 Paid Br.23,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, Br.1,600.
19 Borrowed Br.22,000 from the bank for business use.
22 Paid Br.1,100 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in
August, Br.240.
31 Revenues earned during the month included Br.6,400 cash and Br.6,000 on account.
31 Paid employees’ salaries Br.2,200, office rent Br.1,900, and utilities Br.560.
31 The business received Br.1,120 for medical screening services to be performed next
month
31 Paid cash dividends of Br.7,200.
For your information; The business uses the following accounts: Cash; Accounts Receivable;
Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes
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Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities
Expense; and Advertising Expense.
Requirements
1. Journalize each transaction. Explanations are not required (5 Marks).
2. Post the journal entries to the T-accounts (ledger accounts) . Label the balance of each
account Bal.(5 marks)
3. Prepare the trial balance of Abrham Zeleke, M. D., as of July 31, 2018. (10 marks)