January Transactions Overview

Oct 13, 2025 by magicalceylontours.com 143 views

Brent Jackson, M.D. - Medical Practice Transactions in Imperial Beach, California

January Transactions Overview

As a medical practice owner, Brent Jackson, M.D. needs to accurately record and analyze the financial transactions of his business. In this article, we will go through the January transactions of Brent Jackson's medical practice in Imperial Beach, California, and journalize each transaction with a detailed explanation.

Transaction 1: Cash Receipts from Patient Payments

Date	Description	Credit
January 2	Cash received from patient payments	10,000
January 15	Cash received from patient payments	8,000
January 28	Cash received from patient payments	12,000

Journal Entry:

Date: January 31
Debit: Cash (10,000 + 8,000 + 12,000) = 30,000
Credit: Accounts Receivable (10,000 + 8,000 + 12,000) = 30,000

Explanation: The medical practice received cash payments from patients on January 2, 15, and 28. These payments were recorded as cash receipts and credited to the Accounts Receivable account, which represents the amount owed to the practice by patients.

Transaction 2: Office Supplies Purchases

Date	Description	Debit
January 5	Office supplies purchased	1,500
January 20	Office supplies purchased	2,000
January 25	Office supplies purchased	1,200

Journal Entry:

Date: January 31
Debit: Office Supplies (1,500 + 2,000 + 1,200) = 4,700
Credit: Cash (1,500 + 2,000 + 1,200) = 4,700

Explanation: The medical practice purchased office supplies on January 5, 20, and 25. These purchases were recorded as debits to the Office Supplies account, which represents the cost of supplies used in the practice.

Transaction 3: Rent Expense

Date	Description	Credit
January 1	Rent expense	5,000
January 15	Rent expense	5,000
January 31	Rent expense	5,000

Journal Entry:

Date: January 31
Debit: Rent Expense (5,000 + 5,000 + 5,000) = 15,000
Credit: Cash (5,000 + 5,000 + 5,000) = 15,000

Explanation: The medical practice paid rent for the office space on January 1, 15, and 31. These payments were recorded as debits to the Rent Expense account, which represents the cost of renting the office space.

Transaction 4: Salaries and Wages

Date	Description	Credit
January 5	Salaries and wages paid	8,000
January 20	Salaries and wages paid	10,000
January 28	Salaries and wages paid	12,000

Journal Entry:

Date: January 31
Debit: Salaries and Wages Expense (8,000 + 10,000 + 12,000) = 30,000
Credit: Cash (8,000 + 10,000 + 12,000) = 30,000

Explanation: The medical practice paid salaries and wages to employees on January 5, 20, and 28. These payments were recorded as debits to the Salaries and Wages Expense account, which represents the cost of employing staff.

Transaction 5: Insurance Premiums

Date	Description	Debit	Credit
January 10	Insurance premiums paid		2,000
January 25	Insurance premiums paid		1,500

Journal Entry:

Date: January 31
Debit: Insurance Expense (2,000 + 1,500) = 3,500
Credit: Cash (2,000 + 1,500) = 3,500

Explanation: The medical practice paid insurance premiums on January 10 and 25. These payments were recorded as debits to the Insurance Expense account, which represents the cost of insurance coverage.

Transaction 6: Utilities

Date	Description	Debit	Credit
January 15	Utilities paid		1,000
January 28	Utilities paid		1,200

Journal Entry:

Date: January 31
Debit: Utilities Expense (1,000 + 1,200) = 2,200
Credit: Cash (1,000 + 1,200) = 2,200

Explanation: The medical practice paid utilities on January 15 and 28. These payments were recorded as debits to the Utilities Expense account, which represents the cost of utilities used in the practice.

Transaction 7: Depreciation

Date	Description	Debit	Credit
January 31	Depreciation expense		2,000

Journal Entry:

Date: January 31
Debit: Depreciation Expense (2,000)
Credit: Accumulated Depreciation (2,000)

Explanation: The medical practice recorded depreciation expense on January 31. This expense represents the decrease in value of assets over time.

Transaction 8: Interest Income

Date	Description	Debit	Credit
January 31	Interest income		500

Journal Entry:

Date: January 31
Debit: Cash (500)
Credit: Interest Income (500)

Explanation: The medical practice received interest income on January 31. This income represents the interest earned on investments or loans.

Transaction 9: Bank Fees

Date	Description	Debit	Credit
January 15	Bank fees paid		100
January 28	Bank fees paid		150

Journal Entry:

Date: January 31
Debit: Bank Fees Expense (100 + 150) = 250
Credit: Cash (100 + 150) = 250

Explanation: The medical practice paid bank fees on January 15 and 28. These payments were recorded as debits to the Bank Fees Expense account, which represents the cost of banking services.

Transaction 10: Miscellaneous Expenses

Date	Description	Debit	Credit
January 10	Miscellaneous expenses		500
January 25	Miscellaneous expenses		300

Journal Entry:

Date: January 31
Debit: Miscellaneous Expenses (500 + 300) = 800
Credit: Cash (500 + 300) = 800

Explanation: The medical practice paid miscellaneous expenses on January 10 and 25. These payments were recorded as debits to the Miscellaneous Expenses account, which represents the cost of various expenses not included in other accounts.

Conclusion

In conclusion, the medical practice of Brent Jackson, M.D. had a total of 10 transactions in January. These transactions included cash receipts from patient payments, office supplies purchases, rent expense, salaries and wages, insurance premiums, utilities, depreciation, interest income, bank fees, and miscellaneous expenses. Each transaction was recorded in the journal with a detailed explanation of the account affected and the amount of the transaction.
Brent Jackson, M.D. - Medical Practice Transactions in Imperial Beach, California: Q&A

Introduction

In our previous article, we went through the January transactions of Brent Jackson's medical practice in Imperial Beach, California, and journalized each transaction with a detailed explanation. In this article, we will answer some frequently asked questions (FAQs) related to the transactions and provide additional insights into the financial management of the medical practice.

Q: What is the purpose of journalizing transactions?

A: Journalizing transactions is an essential part of accounting that helps to record and analyze the financial activities of a business. It provides a detailed record of all transactions, including income and expenses, and helps to identify trends and patterns in the financial data.

Q: What is the difference between a debit and a credit?

A: In accounting, a debit is an entry that increases an asset or expense account, while a credit is an entry that increases a liability or equity account. For example, if a business purchases office supplies, the debit would be to the Office Supplies account, while the credit would be to the Cash account.

Q: What is the purpose of the Accounts Receivable account?

A: The Accounts Receivable account represents the amount owed to a business by its customers. It is used to track the amount of money that is due to the business from its customers.

Q: What is the purpose of the Office Supplies account?

A: The Office Supplies account represents the cost of supplies used in a business. It is used to track the amount of money spent on office supplies, such as paper, pens, and other materials.

Q: What is the purpose of the Rent Expense account?

A: The Rent Expense account represents the cost of renting a business's office space. It is used to track the amount of money spent on rent each month.

Q: What is the purpose of the Salaries and Wages Expense account?

A: The Salaries and Wages Expense account represents the cost of employing staff in a business. It is used to track the amount of money spent on salaries and wages each month.

Q: What is the purpose of the Insurance Expense account?

A: The Insurance Expense account represents the cost of insurance coverage for a business. It is used to track the amount of money spent on insurance premiums each month.

Q: What is the purpose of the Utilities Expense account?

A: The Utilities Expense account represents the cost of utilities used in a business, such as electricity, water, and gas. It is used to track the amount of money spent on utilities each month.

Q: What is the purpose of the Depreciation Expense account?

A: The Depreciation Expense account represents the decrease in value of assets over time. It is used to track the amount of money spent on depreciation each month.

Q: What is the purpose of the Interest Income account?

A: The Interest Income account represents the interest earned on investments or loans. It is used to track the amount of money earned on interest each month.

Q: What is the purpose of the Bank Fees Expense account?

A: The Bank Fees Expense account represents the cost of banking services, such as bank fees and charges. It is used to track the amount of money spent on bank fees each month.

Q: What is the purpose of the Miscellaneous Expenses account?

A: The Miscellaneous Expenses account represents the cost of various expenses not included in other accounts. It is used to track the amount of money spent on miscellaneous expenses each month.

Conclusion

In conclusion, journalizing transactions is an essential part of accounting that helps to record and analyze the financial activities of a business. The transactions of Brent Jackson's medical practice in Imperial Beach, California, provide a detailed record of all financial activities, including income and expenses. By understanding the purpose of each account and transaction, businesses can make informed decisions about their financial management and improve their overall financial performance.

Additional Resources

For more information on accounting and financial management, please refer to the following resources:

American Institute of Certified Public Accountants (AICPA)
Financial Accounting Standards Board (FASB)
Internal Revenue Service (IRS)
Small Business Administration (SBA)

Disclaimer

The information provided in this article is for general informational purposes only and should not be considered as professional advice. It is recommended that businesses consult with a certified public accountant (CPA) or other financial professional for specific guidance on accounting and financial management.