J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April, 2007, Outz completed the following transactions in her practice of cardiology.

Apr. 1. Paid office rent for April, $800.

3. Purchased equipment on account, $2,100.

5. Received cash on account from patients, $3,150.

8. Purchased X-ray film and other supplies on account, $245.

9. One of the items of equipment purchased on April 3 was defective. It was returned with the permission of the supplier, who agreed to reduce the account for the amount charged for the item, $325.

12. Paid cash to creditors on account, $1,250.

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 amount to a creditor in March had not been recorded. Journalize the $200 payment as 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 patients 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) are listed 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; Miscellaneous Expense, 59.

Instructions

1. 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 the posting reference column. (Hint: Verify the equality of the debit and credit balances 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 appropriate balance columns after each posting.

4. Prepare an unadjusted trial balance as of April 30.