You are the nancial 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 transactions in the appropriate journal
entries and prepare a trial balance at the end of the month.

Transactions (in USD)

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 1,2024 Medical $75,000
Equipment
Cash $150,000
Equity $225,000
2. January 2, 2024 : Los Angeles Healthcare Corporation. lodged $100,000 of the cash
into a bank account.

Date Account Debit Credit

Title
Jan 2,2024 Bank Account $100,000

Cash $100,000
3. January 3, 2024 : Los Angeles Healthcare Corporation. purchased of ce furniture
costing $8,000 by check.

Date Account Debit Credit

Title
Jan 3,2024 Office Furniture $8,000

Cash $8,000
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 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 4,2024 Medical $30,000
Supplies
Accounts $30,000
Payable
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 5,2024 Utility Expense $4,000

Rent Expense $3,000

Cash $7,000
6. January 6, 2024 : Dr. Smith, the owner, paid himself a salary of $2,000 in cash.

Date Account Debit Credit

Title
Jan 6,2024 Salary $2,000

Cash $2,000
7. January 7, 2024 : Los Angeles Healthcare Corporation. sold the medical supplies
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 7,2024 Accounts $45,000
Receivable
Date Account Debit Credit
Title
Sales $45,000
Costs of sold $30,000
goods
Inventory $30,000
8. January 8, 2024 : HealthPlus Limited returned 10% of the goods to Los Angeles
Healthcare Corporation. as they were defective.

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
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 9,2024 Accounts $100,000
Payable
Discount $15,000
Cash $85,000
 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 10,2024 Legal $1,200
expenses
Cash $1,200
11. January 11, 2024 : Los Angeles Healthcare Corporation. took out a ve-year bank loan
for $50,000 which was lodged into the bank account.

Date Account Debit Credit

Title
Jan 11,2024 Bank Loan $50,000

Cash $50,000
12. January 12, 2024 : Los Angeles Healthcare Corporation. sold the original medical
equipment for $75,000 cash.

Date Account Debit Credit

Title
Jan 12,2024 Cash $75,000

Medical $75,000
Equipment
13. January 13, 2024 : Los Angeles Healthcare Corporation. purchased new advanced
medical equipment for $120,000. They used the $75,000 cash received 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 13,2024 Medical $120,000
Equipment
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Date Account Debit Credit
Title
Cash $75,000
Check $45,000
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 14,2024 Accounts $15,000
Payable
Cash $15,000
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 15,2024 Cash $20,000

Accounts $20,000
Receivable
16. January 16, 2024 : Los Angeles Healthcare Corporation. purchased additional medical
supplies costing $10,000 by check.

Date Account Debit Credit

Title
Jan 16,2024 Medical $10,000
Supplies
Cash(Check/ $10,000
Bank)
 17. January 17, 2024 : Los Angeles Healthcare Corporation. paid $5,000 to a local
advertising agency for promotional activities.

Date Account Debit Credit

Title
Jan 17,2024 Advertising $5,000
Expense
Cash $5,000
18. January 18, 2024 : Los Angeles Healthcare Corporation. paid $2,500 in cash for
miscellaneous of ce expenses.

Date Account Debit Credit

Title
Jan 18,2024 Office $2,500
expenses
Cash $2,500
19. January 19, 2024 : Los Angeles Healthcare Corporation. sold medical supplies costing
$5,000 to another customer, Wellness Inc., for $7,500 on credit.
Date Account Title Debit Credit

Jan 19,2024 Accounts $7,500

Receivable
Sales $7,500
Costs of Goods $5,000
Inventory $5,000
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 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 20,2024 Cash $7,500

Accounts $7,500
Receivable
21. January 21, 2024 : Los Angeles Healthcare Corporation. purchased a delivery van for
$30,000 by check.

Date Account Debit Credit

Title
Jan 21,2024 Delivery $30,000
Van(Asset)
Cash $30,000
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 22,2024 Maintenance $10,000
Expense
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 23,2024 Accounts $10,000
Payable
Cash(via $10,000
check)
24. January 24, 2024 : Los Angeles Healthcare Corporation. paid $1,000 in cash for
employee training programs.

Date Account Debit Credit

Title
Jan 24,2024 Employee $1,000
Training
Expense
Cash $1,000
25. January 31, 2024 : Los Angeles Healthcare Corporation. declared a dividend of $5,000,
which will be paid in February.

Date Account Debit Credit

Title
Jan 31,2024 Medical $5,000
Supplies
Expense
Accounts $5,000
Payable

Instructions

1. Journal Entries: Record each transaction in the general journal format (Date, Account
Title, Debit, Credit).