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Completing the Accounting Cycle

Dr. Janet Artuz opened a Medical Clinic. The


following are the transactions made on April.
1

7
1
0

1
2
1
3
1
5
1
7
1
8
1
9
2
1
2
2

-The Doctor Invested P 1,500 000 cash and


P30 000 medical equipment in the clinic
-Bought Chairs and tables on account,
costing P 10 000 from Furniture Canvas
Bought Medical Supplies for Cash. P 5 000
-A Medical Clinic, worth P 900,000 was
acquired paying the 20 % In cash and the
balance issuing 10% per annum notes
Payable
- Land, worth P 300,000 was acquired
paying 15% in cash and the balance issuing
20% per quarter notes payable
-Medical Equipment, worth P200 000 was
acquired paying 80% of it and the balance
issuing 15% notes payable maturing per
semi annum
- Supplies, worth P 30 000 was acquired
paying 50% in cash and the balance on
account
- Acquired allinone insurance for 2 years , P
12 000 and a Prepaid Rent , P 10 000 for 5
months
-Received Cash from patients for service
rendered amounting to P 120, 000
-Paid Furniture Canvas P 5 000 and issued a
5% per quarter note for the balance
-A summary of medical services rendered
showed: cash patients, P 12 000 and Account
Patients: P15 000
- Hired 10 employees. P 600 /day will be
their salaries. Working for 5 day workweek.
-Received P 30 000 cash from Mr. Mendoza
for research to be conducted by Dr. Janet for
6 months
-Collects in full from account patients
Dr. invested P50,000 cash and Equipment
costing P30,000
Rendered Surgical services to a patient who
paid P15, 000 and promised to pay the
balance of P20, 000.
Sent a bill to Pure foods Corporation for the
monthly Check up of its employee, P55 000
Dr. Artuz withdrew cash for Personal use, P
40 000
Paid the following:
Meralco Bill : P 5 000

2
4
2
5
2
6
2
7
2
8
2
9
3
0

PLDT Bill: P 7 000


Salary : P 12 000
Performed Surgical Services and received a
cash,
P 100 000
Sold the Old Equipment (P 30 000)
Sold the P 20 000 worth of supplies
Paid the Vacation fee of the Owner ,P 10 000
Paid the association dues fee, P 30 000
Billed the company for research done, P 20
000
Bought Supplies on Account, P10 000

Solve the Adjusting Entries


1. Expiration of Prepaid Insurance and
Prepaid RentInsurance Expense:
Rent Insurance:
2. Last day of the month April is Thursday.
The total of the employees salary for this
week is P 90, 000
Salaries Payable:
3. Depreciation of the ff:
S.V.
Useful Life
Building
10 yrs.
Medical
20 000
3 yrs
Equipment
Depreciation Expense Building:
Depreciation Medical Equipment:
Depreciation X-Ray Machine:
4. Earned the 1 month of the Unearned
Revenue
Unearned Revenue:
5. 60% of the Supplies are used this month
Supplies Expense:
6. Interests of the Notes Payable
5% Note:
10% Note:
15% Note:
20% Note:
Notes in answering the cycle.:
1. Asset Method
2. Medical Revenues is the default
account if the kind of service is not
indicated in the transaction

3. Use the Account Titles in the Chart of


Accounts Provided Below.
Required:
1. Journalize the ff. transactions
2. Post it in the ledger
3. Prepare a Trial Balance (use the trial
Balance provided below)
4. Answer the adjustments above.
5. Prepare a Work Sheet
6. Prepare the Financial Statements.
7. Journalize the adjusting entries
8. Journalize the Closing Entries
9. Prepare a Post-Trial Balance ( use the
Post trial balance provided below)
10.Prepare the Reversing Entries
11.Expect that the business will pay all
the debts on JULY 31. Prepare the
Payment Entry

509

CHART OF ACCOUNTS

101
102
103
104
105
106
107
107A
108
108A
190

Cash
Accounts Receivable
Medical Supplies
Prepaid rent
Prepaid Insurance
Furnitures and Fixtures
Medical Building
Accu. Depr. Bldg.
Medical Equipment
Accu. Depr. Equipt
Land

201
202
203
204
205
206
207
208

Accounts Payable
5% Notes Payable
10% Notes Payable
15% Notes Payable
20% Notes Payable
Interest Payable
Salaries Payable
Unearned research Revenues

301
Total

Dr. Artuz , Capital

101
102
103
104
105
106
107
107A
108
108A
109

Cash
Accounts Receivable
Medical Supplies
Prepaid rent
Prepaid Insurance
Furnitures and Fixtures
Medical Building
Accu. Depr. Bldg.
Medical Equipment
Accu. Depr. Equipt
Land

201
202
203
204
205
206
207
208

Accounts Payable
5% Notes Payable
10% Notes Payable
15% Notes Payable
20% Notes Payable
Interest Payable
Salaries Payable
Unearned research Revenues

301
302
303
401
402
403
501
502
503
504
505
506
507
508

Dr. Artuz , Capital


Dr. Artuz, Withdrawal
Income Summary
Medical Revenues
Surgical Revenues
Research Revenues
Rent Expense
Supplies Expense
Salaries Expense
Utilities Expense
Insurance Expense
Interest Expense
Depreciation Expense Bldg.
Depreciation Expense Equipt.

Miscellaneous Expense

Total

Post Trial Balance