Assignemnt
Prepare the following journal entries for monthly financials during March 2016 for Company XYZ in proper form:
a. On March 1st, purchased professional equipment at a cost of $40,000 of which $10,000 cash was paid and a 6% note payable was signed for the balance owed. The equipment is expected to last 5 years; XYZ uses straight line method for cost recovery
b. On March 1st, purchased supplies on account at a cost of $9,000. At month's end, $1,700 was on hand.
c. Professional services for the month totaled $120,000. Customer's copayments were $20,000. The remainder was billed to insurers.
d. On Mar 1, paid $10,000 in rent on the office for the months of March and April
e. On Mar 1, paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning Mar 1, 2016
f. On Mar 17, paid $6,000 on account for the goods purchased in c above.
g. Collected $55,000 from insurers
h. Utility expenses incurred, but not paid prior to Mar 31, totaled $470.