Question

Service Business Accounting Cycle On August 1, 2019 a newly incorporated private medical clinic, (your last name) Healthcare Ltd. is formed. The chart of accounts for (vour last name) Healthcare Ltd. is listed below. Follow the instructions to complete the accounting records for the month of August. (your last name)_Healthcare Ltd. Chart of Accounts ASSETS 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Land 141 Buildings 142 Accumulated Depreciation - Buildings LIABILITIES 202 Accounts Payable 208 Salaries Payable 210 Unearned Revenue 215 Income Tax Payable 222 Mortgage Payable OWNERS' EQUITY 301 Common Shares 309 Retained Earnings 311 Dividends Declared REVENUE 410 Medical Fees Earned EXPENSES 511 Salaries Expense 517 Supplies Expense 523 Depreciation Expense 525 Interest Expense 526 Insurance Expense 531 Utilities Expense 535 Repairs Expense 540 Income Tax Expense 601 Income Summary

Business Accounting Cycle work. Student Number can be 33179

Answer 1

Health care Ltd. Journal Enteries Date Particulars 1.8.2019 Cash a/c Dr. To Common Stock (Common Stock issued) 650000 + 33179 Debit in $ Credit in $ 683179 683179 1.8.2019 271000 320000 Land a/c Building a/c Dr. To Cash To Mortgage Payable (Assets purchased) 75300 515700 1.8.2019 99900 Prepaid Insurance a/c Dr. To Cash (Insurance purchased) 99900 52575 1.8.2019 Cash a/c Dr. To Unearned Revenue (Advance from client) 52575 2.8.2019 800 Supplies a/c Dr. To Accounts Payable (Supplies on account) 800 Dr. 18200 14.8.2019 Salaries Expense a/c To Cash (Salary paid) 18200

Date Particulars 21.8.2019 Accounts Receivable a/c Dr. To Medical Fees Earned (Fees earned on account) Debit in $ Credit in $ 120000 120000 Dr. 18200 28.8.2019 Cash a/c To Accounts Receivable (Cash from debtors) 18200 Dr. 18200 28.8.2019 Salaries Expens a/c To Cash (Salary paid) 18200 6500 30.8.2019 Repairs Expense a/c Dr. To Accounts Payable (Repairs on account) 6500 800 30.8.2019 Accounts Payable a/c Dr. To Cash (Creditos paid) 800 Dr. 5400 31.8.2019 Utilities Expense a/c To Cash (Utilities paid) 5400 Dr. 1000 31.8.2019 Dividends a/c To Cash (Dividnds paid) 1000 Dr. Dr. 1800 5450 31.8.2019 Interest Expense a/c Mortgage Payable a/c To Cash (Mortggae paid) 7250

Adjusting Enteries Trans. Particulars a. Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 99900 / 36 Debit in $ Credit in $ 2775 2775 b. 500 Supplies Expense a/c Dr. To Supplies (Supplies Expensed) 800 - 300 500 827 827 Depreciation Expense - Build a/c Dr. To Accum. Depre- Build (Depreciation charged to building) (320000 - 72000)/( 25x 12) d. 9100 Salaries Expense a/c Dr. To Salaries Payable (Salary expense accrued) 9100 Dr. 10515 Unearned Revenue a/c To Medical Fees Earned (Revenue recognized) 10515 8300 Accounts Receivable a/c Dr. To Medical Fees Earned (Fees earned on account) 8300 g. Dr. 1020 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 1020

Closing Enteries Date Particulars 31.8.2019 Income Summary a/c Dr. To Salaries Expense To Repairs Expense To Utilities Expense To Insurance Expense To Supplies Expense To Depreciation Expense - Build To Interest Expense To Income Tax Expense (Expense accounts closed) Debit in $ Credit in $ 64322 45500 6500 5400 2775 500 827 1800 1020 Dr. 138815 31.8.2019 Medical Fees Earned a/c To Income Summary (Revenue accounts closed) 138815 Dr. 74493 31.8.2019 Income Summary a/c To Retained Earnings (Profits transferred) 74493 Dr. 1000 31.8.2019 Retained Earnings a/c To Dividends (Dividends charged) 1000

Trial Balance For the period ending 31.8.2019 500 2775 Particulars Cash Accounts Receivable Supplies Prepaid Insurance Land Building Accum. Depre - Build Accounts Payable Unearned Revenue Income Tax Payable Salaries Payable Mortgage Payable Common Stock Retained Earnings Dividends Medical Fees Earned Salaries Expense Repairs Expense Utilities Expense Insurance Expense Supplies Expense Depreciation Expense - Build Interest Expense Income Tax Expense Totals Unadjusted Adjustments Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 527904 527904 527904 101800 8300 110100 110100 800 300 300 99900 97125 97125 271000 271000 271000 320000 320000 320000 827 827 827 6500 6500 6500 52575 10515 42060 42060 1020 1020 1020 9100 9100 9100 510250 510250 510250 683179 683179 683179 73493 1000 1000 120000 18815 138815 36400 9100 45500 6500 6500 5400 5400 2775 2775 500 500 827 827 1800 1800 1020 1020 1372504 1372504 33037 33037 1391751 1391751 1326429 1326429

138815 Statement of Income For the period ending 31.8.2019 Medical Fees Earned Less: Salaries Expense Repairs Expense Utilities Expense Insurance Expense Supplies Expense Depreciation Expense - Build Interest Expense 45500 6500 5400 2775 500 827 1800 63302 75513 -1020 74493 Income Tax Expense Net Income Statement od Retained Earnings For the period ending 31.8.2019 Net Income Dividends 74493 -1000 73493

Amounts in $ Amounts in $ Balance sheet As at 31.8.2019 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 527904 Accounts Payable 110100 Unearned Revenue 300 Income Tax Payable 97125 735429 Salaries Payable 6500 42060 1020 9100 58680 Non Current Liabilities 271000 Mortgage Payable 510250 Non Current Assets Land Building Accum. Depre - Build 320000 -827 319173 Shareholdwes Equity Common Stock Retained Earnings 1325602 Total Liabilities & Equity 683179 73493 Total Assets 756672 1325602