Question

Problems Obj. 2 P3-1 Accrual basis accounting San Mateo Health Care Inc. is owned and operated by Rachel Pields, the sole stockholder During January 2016, San Mateo Health Care entered into the following transactions: Jan. 1 Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care's building. Hillard paid the rent nine months in advance. 1 Paid $6,000 for a one-year general Insurance business policy 6 Purchased supplies of $1,800 on account. 9 Collected $32,000 for services provided to customers on account, 11 Paid creditors $5,000 on account 18 Invested an additional $10,000 in the business in exchange for common stock 20 Billed patients $52,000 for services provided on account. 25 Received $15,000 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equip- ment, $5,300; interest, $200; and miscellaneous, $3,000. 30 Paid dividends of $8,000 to stockholder (Dr. Fields). Instructions Analyze and record the January transactions for San Mateo Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 2016, balances for the balance sheet are shown below. Assets Liabilities + Stockholders' Equity Accts. Pre. Acc. Accts. Un. Wages Notes Common Retained Cash + Rec. + Ins. + Supp. + Building - Depr. + Land = Pay. + Rev. + Pay. + Pay. + Stock + Earnings Bal, Jan. 1 20,000_44,500 700 1,200 150,000 (11,200) 120,000 7,700 0 0 30,000 50,000 237,500

income statement, classified balance sheet, statement of stockholders equity

Answer 1

Date Assets Accounts Receivable 44,500 Pre. Ins 700 Supp. 1,200 Building Acc. Depr 150,000 (11,200) Land 120,000 Accounts Payable 7,700 Liabilities Wages Un. Rev. Pay. 0 7,000 Notes Pay. 30,000 Cash 20,000 7,000 (6,000) 6,000 1,800 1,800 (32,000) 1-Jan 1-Jan 1-Jan 6-Jan 9-Jan 11-Jan 18-Jan 20-Jan 25-Jan 30-Jan 30-Jan Total 32,000 (9,000)|| 10,000 Stockholders's Equity Explanation Common Retained Account Stock Earnings Description 50,000 237,500 Advance income received is an unearned revenue. Cash is credited as it is paid and the expense is paid in advance Supplie is increased and amount on it is payable. Cash is received thus debited and accounts receivable is credited. Cash is credited as it is paid and liability to pay is decreased. 10,000 Cash is introdued as capital. 52,000 Service revenue Revenue is earned but not received. 15,000 Service revenue Revenue is earned and received. (48,000) Expense Expense will be charged to revenue decreasing the retained earnings. (8,000) Dividend Dividend is paid from retained earnings $ 60,000 $ 248,500 (9,000) 52,000 15,000 (48,000) (8,000) $13,000 $ 64,500 $ 6,700 $ 3,000 $150,000 $ (11,200) $ 120,000 = $ 500 $ 7,000 $ $ 30,000 + Total expense = 31000+8500+5300+200+3000=48000 Please give as many likes for the hard work.