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Far Assignment 2

The document describes transactions for a new medical practice. It establishes accounts and provides journal entries for the month of October 2022. The owner contributed capital and acquired assets by paying some cash and issuing notes payable. The practice billed and collected from patients, paid expenses, and the owner withdrew funds. Adjusting entries are needed for depreciation.

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Carl Marquez
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24 views1 page

Far Assignment 2

The document describes transactions for a new medical practice. It establishes accounts and provides journal entries for the month of October 2022. The owner contributed capital and acquired assets by paying some cash and issuing notes payable. The practice billed and collected from patients, paid expenses, and the owner withdrew funds. Adjusting entries are needed for depreciation.

Uploaded by

Carl Marquez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Date:

Section: Score:
Comprehensive Exam (Single Proprietorship, Service Business)
Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center. Established a medical practice
in San Pablo Laguna. During October 2022, the first month of operations, the following transactions occurred:
October 1 Dr Marasigan transferred P 250,000 from his personal checking account to a bank account, Dr. Nick
Marasigan, MD
October 1 A medical clinic, P 1,000,000 and land P 250,000 were acquired by paying p 50,000 in cash and
issuing a 5-year, 20% notes payable (interest is payable every 6 months) for the P 1,200,000
balance.
October 1 Acquired medical equipment costing P 420,000 and medical supplies amounting to P 39,000 by
paying P 59,000 cash and issuing a 24% note payable, maturing in 6 months, for the P 400,000
balance
October 2 Acquired “All-In-One” insurance for the year, P 20,000
October 4 Received cash from patients amounting to P 117,000
October 7 Bought Medical Supplies on account from San Pablo Supply, P 17,000
October 10 Paid salaries of nurses and Office Staff, P 73,000
October 12 Received P 90,000 from Laguna Experimental Drug Center for research to be conducted by Dr.
Marasigan over the next three months
October 18 Billed patients P 317,000 for services rendered
October 21 Paid P 23,000 for repair to the medical equipment
October 23 Paid the telephone bills, P 3,000
October 24 Bought Medical equipment on account from Dr. De Leon, P 45,000
October 25 Collected P 113,000 from patients billed on the 18th
October 27 Paid P 13,000 on account to San Pablo Supply
October 30 Withdrew P 200,000 in cash from the medical practice
October 30 Paid 15,000 dues to Laguna Medical Association
Requirements:

1. Establish the following accounts and account numbers in a ledger:

Account No. Account No


Cash 110 Marasigan, Capital 310
Accounts Receivable 120 Marasigan, Withdrawals 320
Medical Supplies 130 Income Summary 330
Prepaid Insurance 140 Medical Revenues 410
Land 150 Research revenues 420
Medical Building 160 Salaries Expense 510
Accum. Dep- Medical Bldg. 165 Insurance Expense 520
Medical Equipment 170 Repairs Expense 530
Accum. Dep.-Medical Equip. 175 Supplies Expense 540
24% Notes Payable 210 Telephone Expense 560
20% Notes Payable 220 Depreciation Expense-Bldg 570
Accounts Payable 230 Depreciation Expense – Equip. 580
Salaries Payable 240 Interest Expense 590
Interest Payable 250
Unearned Research Revenue 260

2. Prepare Journal Entries for the above transactions in a separate Yellow Paper
3. Post the entries to the ledger (T-Account), a separate Yellow Paper
4. Prepare the Unadjusted trial balance worksheet
5. Record the below adjustments:
5.1 Depreciation for the Medical Equipment was Php 7,000 for the month of October 2022.
6. Complete the 10- worksheet by posting the adjustments in the 10-column worksheet, the Income
Statement Column and the Balance Sheet
7. Prepare in a separate Yellow Paper the Income Statement, Balance Sheet, Statement of Capital and
Statement of Cash Flows.

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