Assignment Three
Problem One:
The 31 May 2014 trial balance of Lee Childs, Chiropractor, Ltd is shown below.

Lee Childs, CHIROPRACTOR, LTD
Trial Balance as at 31 May 2014

Account Debit Credit

Cash
Accounts receivable Supplies
Prepaid insurance Furniture and equipment Accounts payable
Electricity account payable Unearned revenue
Share Capital
Dividends
Services revenue
Salary expense
Electricity expense
Rent expense

$ 96 300
43 380
11 160
7 380
236 880

146 520

154 840
8 600
21 240

$ 8 820
8 600
2 640
286 240

420 000

$726 300 $726 300

The following transactions were completed during June:

June 1

3

6

10

14

20

23

24

26

27

29

30

Purchased supplies on credit for $5230.

Received $22 200 from patients as payment on account.

Paid the electricity expense of $8600, previously recorded.

Performed services for $2000 that was recorded previously as unearned revenue.

Recorded revenue of $162 350 in cash and $12 450 on credit. Paid salaries of $73 200.

Purchased furniture for $14 000 and paid by electronic transfer.

Paid creditors $6400.

Paid $80 000 in additional dividends.

Purchased insurance policy for $4200 to cover business assets.

Received $12 000 from patients as payment on account.

Recorded revenue of $143 600 in cash and $21 000 on credit.

Paid rent of $24 500.

Required
A. Prepare journal entries to record each transaction. Narrations are not required.
B. 1. Open T accounts for the accounts shown in the trial balance.
2. Enter the 31 May balance in each account.
3. Post the journal entries to the T accounts.
C. Prepare a trial balance as at 30 June 2014.
D. At the end of June, the business estimates it owes another $9,000 for electricity. Should this be recorded by the