74 Chapter 2 Analyzing Transactions

Apr. 17. Paid cash for renewal of a six-month property insurance policy, $370.20. Discovered that the balances of the cash account and the accounts payable

account as of April 1 were overstated by $200. A payment of that amountto a creditor in March had not been recorded. Journalize the $200 paymentas of April 20.

24. Paid cash for laboratory analysis, $545.27. Paid cash from business bank account for personal and family expenses,

$1,250.30. Recorded the cash received in payment of services (on a cash basis) to pa-

tients during April, $1,720.30. Paid salaries of receptionist and nurses, $1,725.30. Paid various utility expenses, $360.30. Recorded fees charged to patients on account for services performed in

April, $5,145.30. Paid miscellaneous expenses, $132.

Outz’s account titles, numbers, and balances as of April 1 (all normal balances) arelisted as follows: Cash, 11, $4,123; Accounts Receivable, 12, $6,725; Supplies, 13, $290;Prepaid Insurance, 14, $465; Equipment, 18, $19,745; Accounts Payable, 22, $765; J. F.Outz, Capital, 31, $30,583; J. F. Outz, Drawing, 32; Professional Fees, 41; Salary Expense,51; Rent Expense, 53; Laboratory Expense, 55; Utilities Expense, 56; MiscellaneousExpense, 59.

Instructions1. Open a ledger of standard four-column accounts for Dr. Outz as of April 1. Enter

the balances in the appropriate balance columns and place a check mark (✔) in thePosting Reference column. (Hint: Verify the equality of the debit and credit bal-ances in the ledger before proceeding with the next instruction.)

2. Journalize each transaction in a two-column journal.3. Post the journal to the ledger, extending the month-end balances to the appropri-

ate balance columns after each posting.4. Prepare an unadjusted trial balance as of April 30.