Question

Chapter 3 Basic Accounting Systems: Accrual Basis P3-2 Adjustment process Adjustment data for San Mateo Health Care Inc. for January are as follows: 1. Insurance expired, $900. 2. Supplies on hand on January 31, $1,200. 3. Depreciation on building, $2,300. 4. Unearned rent revenue earned, $3,000. 5. Wages owed employees but not paid, $2,900. 6. Services provided but not billed to patients, $5,000. Instructions Based on the transactions recorded in January for Problem 3-1, record the adius January using the integrated financial statement framework. ed the adjustments

Answer 1

P3-1)

	Cash	+	Accounts receivable	+	Prepaid insurance	+	Supplies	+	Building	-	Accumulated depreciation	+	Land	=	Accounts payable	+	Unearned revenue	+	Wages payable	+	Notes payable	+	common stock	+	retained earning
Balance	20000		44500		700		1200		150000		-11200		120000		7700		0		0		30000		50000		237500
1	27000																27000
1	-6000				6000
6							1800								1800
9	32000		-32000
11	-5000														-5000
18	10000																						10000
20			52000																						52000	Revenue earned
25	15000																								15000	Revenue earned
30	-48000																								-48000	expense incurred
30	-8000																								-8000	dividend
Total	37000	+	64500	+	6700	+	3000	+	150000	-	-11200	+	120000	=	4500	+	27000	+	0	+	30000	+	60000	+	248500