You are the financial controller of a healthcare company, Los Angeles Healthcare
Corporation. , which operates in the United States. Below is a list of 25 transactions
that occurred during the month of January 2024. Your task is to record these trans-
actions in the appropriate journal entries and prepare a trial balance at the end of
the month.
Transactions (in USD)
Date Account Debit Credit
Title
Jan 1,2024 Medical $75,000
Equipment
Cash $150,000
Equity $225,000
1. January 1, 2024 : Los Angeles Healthcare Corporation. was established by
introducing $150,000 cash and medical equipment worth $75,000.
Date Account Debit Credit
Title
Jan 2,2024 Bank Account $100,000
Cash $100,000
2. January 2, 2024 : Los Angeles Healthcare Corporation. lodged $100,000 of
the cash into a bank account.
Date Account Debit Credit
Title
Jan 3,2024 Office $8,000
Furniture
Cash $8,000
3. January 3, 2024 : Los Angeles Healthcare Corporation. purchased office fur-
niture costing $8,000 by check.
Date Account Debit Credit
Title
Jan 4,2024 Medical $30,000
Supplies
Accounts $30,000
Payable
4. January 4, 2024 : Los Angeles Healthcare Corporation. purchased medical
supplies from PharmaCorp Limited on credit amounting to $30,000.
Date Account Debit Credit
Title
Jan 5,2024 Utility $4,000
Expense
Rent Expense $3,000
Cash $7,000
5. January 5, 2024 : Los Angeles Healthcare Corporation. paid utility charges
and rent to City Council of $4,000 and $3,000 respectively by check.
Date Account Debit Credit
Title
Jan 6,2024 Salary $2,000
Cash $2,000
6. January 6, 2024 : Dr. Smith, the owner, paid himself a salary of $2,000 in
cash.
Date Account Debit Credit
Title
Jan 7,2024 Accounts $45,000
Receivable
Sales $45,000
Date Account Debit Credit
Title
Costs of sold $30,000
goods
Inventory $30,000
7. January 7, 2024 : Los Angeles Healthcare Corporation. sold the medical sup-
plies purchased in No. 4 above for 150% of what they paid for the goods, to
HealthPlus Limited on credit.
Date Account Debit Credit
Title
Jan 8,2024 Sales $4,500
Accounts $4,500
Receivable
Cost of $3,000
returned
goods
Cost of goods $3,000
sold
8. January 8, 2024 : HealthPlus Limited returned 10% of the goods to Los An-
geles Healthcare Corporation. as they were defective.
Date Account Debit Credit
Title
Jan 9,2024 Accounts $30,00
Payable
Discount $15,000
Cash $30,000
9. January 9, 2024 : Los Angeles Healthcare Corporation. sued PharmaCorp
Limited for the defective goods. PharmaCorp agreed to give a 15% discount
on the original purchase amount provided they were paid immediately with a
check. Los Angeles Healthcare Corporation. agreed to this.
Date Account Debit Credit
Title
Jan Legal $1,200
10,2024 expenses
Cash $1,200
10.January 10, 2024 : Los Angeles Healthcare Corporation. incurred legal fees
of $1,200 which they paid in cash.
Date Account Debit Credit
Title
Jan Bank Loan $50,000
11,2024
Cash $50,000
11.January 11, 2024 : Los Angeles Healthcare Corporation. took out a five-year
bank loan for $50,000 which was lodged into the bank account.
Date Account Debit Credit
Title
Jan Cash $75,000
12,2024
Medical $75,000
Equipment
12.January 12, 2024 : Los Angeles Healthcare Corporation. sold the original
medical equipment for $75,000 cash.
Date Account Debit Credit
Title
Jan Medical $120,000
13,2024 Equipment
Cash $75,000
Check $45,000
13.January 13, 2024 : Los Angeles Healthcare Corporation. purchased new ad-
vanced medical equipment for $120,000. They used the $75,000 cash re-
ceived from the sale of the old equipment plus a check for $45,000 to pay for
the new equipment.
Date Account Debit Credit
Title
Jan Accounts $15,000
14,2024 Payable
Cash $15,000
14.January 14, 2024 : Los Angeles Healthcare Corporation. paid $15,000 to
PharmaCorp Limited by check to settle part of the outstanding balance.
Date Account Debit Credit
Title
Jan Cash $20,000
15,2024
Accounts $20,000
Receivable
15.January 15, 2024 : Los Angeles Healthcare Corporation. received $20,000
from HealthPlus Limited as partial payment for the goods sold on January 7.
Date Account Debit Credit
Title
Jan Medical $10,000
16,2024 Supplies
Cash(Check/ $10,000
Bank)
16.January 16, 2024 : Los Angeles Healthcare Corporation. purchased addi-
tional medical supplies costing $10,000 by check.
Date Account Debit Credit
Title
Jan Advertising $5,000
17,2024 Expense
Cash $5,000
17.January 17, 2024 : Los Angeles Healthcare Corporation. paid $5,000 to a lo-
cal advertising agency for promotional activities.
Date Account Debit Credit
Title
Jan Office $2,500
18,2024 expenses
Cash $2,500
18.January 18, 2024 : Los Angeles Healthcare Corporation. paid $2,500 in cash
for miscellaneous office expenses.
Date Account Debit Credit
Title
Jan 19,2024 Accounts $7,500
Receivable
Sales $7,500
Costs of $5,000
Goods
Inventory $5,000
19.January 19, 2024 : Los Angeles Healthcare Corporation. sold medical sup-
plies costing $5,000 to another customer, Wellness Inc., for $7,500 on credit.
Date Account Debit Credit
Title
Jan Cash $7,500
20,2024
Date Account Debit Credit
Title
Accounts $7,500
Receivable
20.January 20, 2024 : Los Angeles Healthcare Corporation. received $7,500
from Wellness Inc. as full payment for the goods sold on January 19.
Date Account Debit Credit
Title
Jan Delivery $30,000
21,2024 Van(Asset)
Cash $30,000
21.January 21, 2024 : Los Angeles Healthcare Corporation. purchased a deliv-
ery van for $30,000 by check.
Date Account Debit Credit
Title
Jan 22,2024 Maintenance $10,000
Expense
Cash(via $10,000
check)
22.January 22, 2024 : Los Angeles Healthcare Corporation. paid $3,000 to a
maintenance company for servicing the new medical equipment.
Date Account Debit Credit
Title
Jan Accounts $10,000
23,2024 Payable
Cash(via $10,000
check)
23.January 23, 2024 : Los Angeles Healthcare Corporation. paid $10,000 to
PharmaCorp Limited by check to settle the remaining balance.
Date Account Debit Credit
Title
Jan Employee $1,000
24,2024 Training
Expense
Cash $1,000
24.January 24, 2024 : Los Angeles Healthcare Corporation. paid $1,000 in cash
for employee training programs.
Date Account Debit Credit
Title
Jan Medical $5,000
31,2024 Supplies
Expense
Accounts $5,000
Payable
25.January 31, 2024 : Los Angeles Healthcare Corporation. declared a dividend
of $5,000, which will be paid in February.
Instructions
1. Journal Entries: Record each transaction in the general journal format
(Date, Account Title, Debit, Credit).
