Question

B PROBLEMS P3-1B (L04,6,7) (Transactions, Financial Statements-Service Company Listed below are the transactions of Rook Medical for the month of March March 1 Rook begins practice as a family practitioner and invests 550.000 cash 1 Purchases medical equipment on account from K Enterprises for 527 800 3 Pays rent for office spacer, $1,500 for the month 3 Employs a receptionist, Michelle Kwin. Purchases medical supplies for cash. 51.165. 10 Receives cash of 58 50 from patients for performed 15 Bills patients $11.560 for services performed 21 Pays K Enterprises, on account, $7.00 23 Withdraws 53.000 cash from the business for peruna 26 Receives $2.000 from patients on account 30 Bills patients ses for performed 31 Pays the following expenses in cash Slanes and wages $2.00: miscellaneous office expenses 910 31 Medical supplies used during the months Instructions (a) Enter the transactions shown above in appropriate general ledger accounts (use Taccounts). Le the following ledger accounts: Cash. Accounts Receivable Supplies, Equipment. Accumulated Dingolation Equipment, Accounts Pay able. Owner's Capital Service Revenue Rent Expense, Office Expense Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income Summary. Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the other accounts needed. Rexond depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account. b) Prepare a trial balance la Prepare an income statement, a statement of owners equity and an unclassified balance sheet Id) Close the ledger fel Prepare a post-closing trial balance

Answer 1

(a).		Cash					Accounts receivable
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 1.	50000	Mar 3.	1500		Mar 15.	11560	Mar 26.	2600
	Mar 10.	850	Mar 4.	1165		Mar 30.	6890
	Mar 26.	2600	Mar 21.	7600			18450		2600
			Mar 23.	3000		Bal.	15850
			Mar 31.	3410
		53450		16675
	Bal.	36775
		Supplies					Equipment
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 4.	1165	Mar 31.	695		Mar 1.	22800
		1165		695
	Bal.	470
	Accumulated depreciation-Equipment				Accounts payable
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
			Mar 31.	380		Mar 21.	7600	Mar 1.	22800
			(22800/5)*(1/12)				7600		22800
								Bal.	15200
		Owner's capital				Service revenue
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 23.	3000	Mar 1.	50000				Mar 10.	850
		3000		50000				Mar 15.	11560
			Bal.	47000				Mar 30.	6890
							0		19300
								Bal.	19300
		Rent expense				Office expense
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 3.	1500				Mar 31.	910
		Salaries and wages expense			Supplies expense
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 31.	2500				Mar 31.	695
		Depreciation expense				Income summary
	Date	Debit	Date	Credit		Date	Debit	Date	Credit
	Mar 31.	380
	(22800/5)*(1/12)

(b) Trial balance Debit Credit 36775 15850 470 22800 380 Cash Accounts receivable Supplies Equipment Accumulated depreciation-Equipment Accounts payable Owner's capital Service revenue Rent expense Office expense Salaries and wages expense Supplies expense Depreciation expense Totals 15200 47000 19300 1500 910 2500 695 380 81880 81880 (c) Income statement $ $ 19300 Service revenue Less:Expenses Rent expense Office expense Salaries and wages expense 1500 910 2500

25001 695 Salaries and wages expense Supplies expense Depreciation expense Total expenses Net income 380 5985 13315 Statement of owner's equity $ Initial investment Add:Net income 50000 13315 63315 3000 60315 Less:Withdrawals Owner's equity 36775 Balance sheet $ Assets Cash Accounts receivable Supplies Equipment Accumulated depreciation-Equipment Total assets Liabilities and owner's equity 15850 470 22800 -380 75515

15200 Liabilities and owner's equity Accounts payable Owner's capital Total liabilities and owner's equity 60315 75515 (d) Date Date Service revenue Debit Date 19300 Bal. 19300 Credit 19300 Income summary Debit Date 5985 Mar 31. Credit 19300 Mar 31. Mar 31. 19300 Mar 31. 13315 19300 19300 Office expense Debit Date Credit Date Mar 3. Rent expense Debit Date 1500 Mar 31. 1500 Credit 1500 Date Mar 31. 910 Mar 31. 910 1500 910 910 Date Date Salaries and wages expense Debit Date Credit 2500 Mar 31. 2500 2500 2500 Supplies expense Debit Date 695 Mar 31. 695 Credit 695 Mar 31. Mar 31. 695 Depreciation expense Debit Date 380 Mar 31. Date Mar 31. Date Credit 380 Owner's capital Debit Date Bal. Credit 47000

Date Depreciation expense Date Debit Date Mar 31. 380 Mar 31. (22800/5)*(1/12) 380 Credit 380 Owner's capital Debit Date Bal. Credit 47000 13315 60315 Mar 31. 380 0 Bal. 60315 (e) Post-closing trial balance Credit Debit 36775 15850 470 22800 Cash Accounts receivable Supplies Equipment Accumulated depreciation-Equipment Accounts payable Owner's capital Totals 380 15200 60315 75895 75895