Question

Journalizing transactions John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.

Jan. 1 The business received \(34,000 cash and issued common stock to Daniel.

2 Purchased medical supplies on account, \)17,000.

4 Performed services for patients receiving \(1,600.

12 Paid monthly office rent of \)3,000.

15 Recorded $7,000 revenue for services rendered to patients on account.

Journalize the transactions of John Daniel, M.D. Include an explanation with each entry.

Short answer

Accounts receivables are amounts owed to the business and required journal entries are passed in step 2.

Step-by-step solution

Definition of accounts receivables

Accounts receivables are defined as the amount of money owed to a business by clients or customers in exchange for goods or services

Journal Entries

	Journal entry
Date	Particulars	Debit ($)	Credit ($)
Jan 1	Cash	34,000
	Common Stock		34,000
	(Cash invested by the owner)
Jan 2	Medical Supplies	17,000
	Accounts payable		17,000
	(Medical supplies are purchased)
Jan 4	Cash	1,600
	Service Revenue		1,600
	(Service revenue received)
Jan 12	Rent Expense	3,000
	Cash		3,000
	(Rent expenses paid in cash)
Jan 15	Accounts Receivables	7,000
	Service Revenue		7,000
	(Services provided on credits)