1. Paid $500,000.00 for malpractice insurance DR 2. Purchased stock of DDD as an investment $500,000.00 DR 3. Purchased medical supplies of $300,000.00 on account DR 4. Received 4700,000.00 from patients who paid cash DR 5. Received $17,980.00 as income from investments CR CR CR CR DR CR DR CR DR CR DR CR

1. Paid $500,000.00 for malpractice insurance DR 2. Purchased stock of DDD as an investment $500,000.00 DR 3. Purchased medical supplies of $300,000.00 on account DR 4. Received 4700,000.00 from patients who paid cash DR 5. Received $17,980.00 as income from investments CR CR CR CR DR CR DR CR DR CR DR CR

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 44P

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On 12/1/2021 White Clinic had the following balances: Equity of $350,000 Assets of $600,000 Liabilities of $$250,000 The following transactions occurred in December: 1. Paid $85,000 on a mortgage with $15,000 of this being interest. 2. Paid wages of $65,000. 3. Billed patients for services in the amount of $250,000. 4. Placed an order for a new MRI machine in the amount of $550,000. 5. Used supplies in the amount of $30,000 for patient services. 6. Purchased supplies on account in the amount of $60,000. 7. Received funds in the amount of $205,000 from BCBS for previously billed patients Would there be a Journal entry for #4? For #1 interest expense would be a debit or credit entry? Asset balance over the month increased or decreased? White clinic has an additional amount of how many $ in Assets over this period? White clinic made a profit or loss after all transactions? For #7 there would be a debit or credit to Accounts Receivable Liabilities increased by $10,000 over this reporting…
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