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Exercise 10

This document contains the transactions and trial balance of a medical practice for October. It records various revenues, expenses, assets and liabilities. Key transactions include receiving $250,000 in capital, purchasing a medical building for $1 million and equipment for $420,000. Revenues of $434,000 and $30,000 were recorded from medical services and research. Expenses included $73,000 in salaries, $23,000 in repairs and $1,667 in insurance. Depreciation of $5,000 and $9,000 was recorded against the building and equipment.

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77 views

Exercise 10

This document contains the transactions and trial balance of a medical practice for October. It records various revenues, expenses, assets and liabilities. Key transactions include receiving $250,000 in capital, purchasing a medical building for $1 million and equipment for $420,000. Revenues of $434,000 and $30,000 were recorded from medical services and research. Expenses included $73,000 in salaries, $23,000 in repairs and $1,667 in insurance. Depreciation of $5,000 and $9,000 was recorded against the building and equipment.

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dumpanonymously
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110 Cash

120 Accounts Receivable


130 Medical Supplies
140 Prepaid Insurance
150 Land
160 Medical Building
165 Accumulated Depreciation-Medical Building
170 Medical Equipment
175 Accumulated Depreciation-Medical Equipment
210 24% Notes Payable
220 20% Notes Payable
230 Accounts Payable
240 Salaries Payable
250 Interest Payable
260 Unearned Research Revenues
310 Marasigan, Capital
320 Marasigan, Withdrawals
330 Income Summary
410 Medical Revenues
420 Research Revenues
510 Salaries Expense
520 Insuranse Expense
530 Repairs Expense
540 Supplies Expense
550 Association Dues Expense
560 Telephone Expense
570 Depreciation Expense-Bldg.
580 Depreciation Expense-Equipt.
590 Interest Expense
Date Particulars Debit Credit
Oct 1 Cash 250,000
Marasigan, Capital 250,000
1 Medical Building 1,000,000
Land 250,000
Cash 50,000
20% Notes Payable 1,200,000
1 Medical Equipment 420,000
Medical Supplies 39,000
Cash 59,000
24% Notes Payable 400,000
2 Prepaid Insurance 20,000
Cash 20,000
4 Cash 117,000
Medical Revenues 117,000
7 Medical Supplies 17,000
Accounts Payable 17,000
10 Salaries Expense 73,000
Cash 73,000
12 Cash 90,000
Unearned Research Revenues 90,000
18 Accounts Receivable 317,000
Medical Revenues 317,000
21 Repairs Expense 23,000
Cash 23,000
23 Telephone Expense 3,000
Cash 3,000
24 Medical Equipment 45,000
Accounts Payable 45,000
25 Cash 113,000
Accounts Receivable 113,000
27 Accounts Payable 13,000
Cash 13,000
30 Marasigan, Withdrawals 200,000
Cash 200,000
30 Association Dues Expense 15,000
Cash 15,000
Opening Balance Current Transactions Trial Balance
Account No. Accoumt Title Debit Credit Debit Credit Debit Credit
110 Cash 570,000 456,000 114,000
120 Accounts Receivable 317,000 113,000 204,000
130 Medical Supplies 56,000 0 56,000
140 Prepaid Insurance 20,000 0 20,000
150 Land 250,000 0 250,000
160 Medical Building 1,000,000 0 1,000,000
165 Accumulated Depreciation-Medical Building 0 0 0 0
170 Medical Equipment 465,000 0 465,000
175 Accumulated Depreciation-Medical Equipment 0 0 0 0
210 24% Notes Payable 0 400,000 400,000
220 20% Notes Payable 0 1,200,000 1,200,000
230 Accounts Payable 13,000 62,000 49,000
240 Salaries Payable 0 0 0 0
250 Interest Payable 0 0 0 0
260 Unearned Research Revenues 0 90,000 90,000
310 Marasigan, Capital 0 250,000 250,000
320 Marasigan, Withdrawals 200,000 0 200,000
330 Income Summary 0 0 0 0
410 Medical Revenues 0 434,000 434,000
420 Research Revenues 0 0 0 0
510 Salaries Expense 73,000 0 73,000
520 Insuranse Expense 0 0 0 0
530 Repairs Expense 23,000 0 23,000
540 Supplies Expense 0 0 0 0
550 Association Dues Expense 15,000 0 15,000
560 Telephone Expense 3,000 0 3,000
570 Depreciation Expense-Bldg. 0 0 0 0
580 Depreciation Expense-Equipt. 0 0 0 0
590 Interest Expense 0 0 0 0
Total 3,005,000 3,005,000 2,423,000 2,423,000
Date Partculars Debit Credit
Oct 30 Insuranse Expense 1,667
Prepaid Insurance 1,667
30 Supplies Expense 35,000
Medical Supplies 35,000
30 Depreciation Expense-Bldg. 5,000
Depreciation Expense-Equipt. 9,000
Accumulated Depreciation-Medical Building 5,000
Accumulated Depreciation-Medical Equipment 9,000
30 Unearned Research Revenues 30,000
Research Revenues 30,000
30 Salaries Expense 51,000
Salaries Payable 51,000
30 Interest Expense 28,000
Interest Payable 28,000
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account No. Accoumt Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 114,000 0 0 114,000 114,000
120 Accounts Receivable 204,000 0 0 204,000 204,000
130 Medical Supplies 56,000 0 35,000 21,000 21,000
140 Prepaid Insurance 20,000 0 1,667 18,333 18,333
150 Land 250,000 0 0 250,000 250,000
160 Medical Building 1,000,000 0 0 1,000,000 1,000,000
165 Accumulated Depreciation-Medical Building 0 0 0 5,000 5,000 5,000
170 Medical Equipment 465,000 0 0 465,000 465,000
175 Accumulated Depreciation-Medical Equipment 0 0 0 9,000 9,000 9,000
210 24% Notes Payable 400,000 0 0 400,000 400,000
220 20% Notes Payable 1,200,000 0 0 1,200,000 1,200,000
230 Accounts Payable 49,000 0 0 49,000 49,000
240 Salaries Payable 0 0 0 51,000 51,000 51,000
250 Interest Payable 0 0 0 28,000 28,000 28,000
260 Unearned Research Revenues 90,000 30,000 0 60,000 60,000
310 Marasigan, Capital 250,000 0 0 250,000 250,000
320 Marasigan, Withdrawals 200,000 0 0 200,000 200,000
330 Income Summary 0 0 0 0 0 0
410 Medical Revenues 434,000 0 0 434,000 434,000
420 Research Revenues 0 0 0 30,000 30,000 30,000
510 Salaries Expense 73,000 51,000 0 124,000 124,000
520 Insuranse Expense 0 0 1,667 0 1,667 1,667
530 Repairs Expense 23,000 0 0 23,000 23,000
540 Supplies Expense 0 0 35,000 0 35,000 35,000
550 Association Dues Expense 15,000 0 0 15,000 15,000
560 Telephone Expense 3,000 0 0 3,000 3,000
570 Depreciation Expense-Bldg. 0 0 5,000 0 5,000 5,000
580 Depreciation Expense-Equipt. 0 0 9,000 0 9,000 9,000
590 Interest Expense 0 0 28,000 0 28,000 28,000
Total 2,423,000 2,423,000 159,667 159,667 2,516,000 2,516,000 243,667 464,000 2,272,333 2,052,000
220,333 220,333
464,000 464,000 2,272,333 2,272,333
Marasigtan Medical Clinic
Statement of Comprehensive Income
For the Month Ended October 31, 2021

Revenues
Medical Revenues 434,000
Research Revenues 30,000
Total 464,000

Less: Operating Expenses


Salaries Expense 124,000
Insuranse Expense 1,667
Repairs Expense 23,000
Supplies Expense 35,000
Association Dues Expense 15,000
Telephone Expense 3,000
Depreciation Expense-Bldg. 5,000
Depreciation Expense-Equipt. 9,000
Interest Expense 28,000
Total 243,667

Net Income/Loss 220,333


Marasigan Medical Clinic
Statement of Changes in Equity
For the Month Ended October 31, 2021

Marasigan, Capital, Beg. Oct 1, 2021


Add: Additional Investment 250,000
Net Income 220,333
Total 470,333
Less: Withdrawals 200,000
Marasigan, Capital, End. Oct 31, 2021 270,333
Marasigan Medical Clinic
Statement of Financial Position
As of October 31, 2021

Assets
Current Assets
Cash 114,000
Accounts Receivable 204,000
Medical Supplies 21,000
Prepaid Insurance 18,333
Total Current Assets 357,333
Noncurrent Assets
Land 250,000
Medical Building 1,000,000
Less: Accumulated Depreciation-Medical Building 5,000 995,000
Medical Equipment 465,000
Less: Accumulated Depreciation-Medical Equipment 9,000 456,000
Total Noncurrent Assets 1,701,000
Total Assets 2,058,333

Liabilities
Current Liabilities
24% Notes Payable 400,000
20% Notes Payable 1,200,000
Accounts Payable 49,000
Salaries Payable 51,000
Interest Payable 28,000
Unearned Research Revenues 60,000
Total Current Liabilities 1,788,000
Owner's Equity
Marasigan, Capital End. (October 31, 2021) 270,333
Total Liabilities and Owner's Equity 2,058,333
Income Accounts
2021
Oct 31 Medical Revenues 410 434,000
Research Revenues 420 30,000
Income Summary 464,000

Oct 31 Income Summary 330 243,667


Salaries Expense 510 124,000
Insuranse Expense 520 1,667
Repairs Expense 530 23,000
Supplies Expense 540 35,000
Association Dues Expense 550 15,000
Telephone Expense 560 3,000
Depreciation Expense-Bldg. 570 5,000
Depreciation Expense-Equipt. 580 9,000
Interest Expense 590 28,000

Oct 31 Income Summary 330 220,333


Marasigan, Capital 310 220,333

Oct 31 Marasigan, Capital 310 200,000


Marasigan, Withdrawals 320 200,000
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Closing Entries Post Closing Trial Balance
Account No. Accoumt Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 114,000 0 0 114,000 0 0 114,000
120 Accounts Receivable 204,000 0 0 204,000 0 0 204,000
130 Medical Supplies 56,000 0 35,000 21,000 0 0 21,000
140 Prepaid Insurance 20,000 0 1,667 18,333 0 0 18,333
150 Land 250,000 0 0 250,000 0 0 250,000
160 Medical Building 1,000,000 0 0 1,000,000 0 0 1,000,000
165 Accumulated Depreciation-Medical
0 Building 0 0 5,000 5,000 0 0 5,000
170 Medical Equipment 465,000 0 0 465,000 0 0 465,000
175 Accumulated Depreciation-Medical
0 Equipment 0 0 9,000 9,000 0 0 9,000
210 24% Notes Payable 400,000 0 0 400,000 0 0 400,000
220 20% Notes Payable 1,200,000 0 0 1,200,000 0 0 1,200,000
230 Accounts Payable 49,000 0 0 49,000 0 0 49,000
240 Salaries Payable 0 0 0 51,000 51,000 0 0 51,000
250 Interest Payable 0 0 0 28,000 28,000 0 0 28,000
260 Unearned Research Revenues 90,000 30,000 0 60,000 0 0 60,000
310 Marasigan, Capital 250,000 0 0 250,000 200,000 220,333 270,333
320 Marasigan, Withdrawals 200,000 0 0 200,000 0 200,000 0 0
330 Income Summary 0 0 0 0 0 0 464,000 464,000 0 0
410 Medical Revenues 434,000 0 0 434,000 434,000 0 0 0
420 Research Revenues 0 0 0 30,000 30,000 30,000 0 0 0
510 Salaries Expense 73,000 51,000 0 124,000 0 124,000 0 0
520 Insuranse Expense 0 0 1,667 0 1,667 0 1,667 0 0
530 Repairs Expense 23,000 0 0 23,000 0 23,000 0 0
540 Supplies Expense 0 0 35,000 0 35,000 0 35,000 0 0
550 Association Dues Expense15,000 0 0 15,000 0 15,000 0 0
560 Telephone Expense 3,000 0 0 3,000 0 3,000 0 0
570 Depreciation Expense-Bldg. 0 0 5,000 0 5,000 0 5,000 0 0
580 Depreciation Expense-Equipt. 0 0 9,000 0 9,000 0 9,000 0 0
590 Interest Expense 0 0 28,000 0 28,000 0 28,000 0 0
Total 2,423,000 2,423,000 159,667 159,667 2,516,000 2,516,000 1,128,000 1,128,000 2,072,333 2,072,333

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