Complete the worksheet and prepare the statement of changes in equity. Adjustments:a. Insurance for one month has expired.b. Medical supplies on hand at month-end amounted to P21,000.c. Depreciation on the medical building and on the medical equipment is P5,000and P9,000, respectively.d. Unearned research revenues in the amount of P30,000 have been earned.e. Salaries of P51,000 have accrued.f. Interest on the 20% and 24% notes are P20,000 and P8,000, respectively.Complete the worksheet and prepare an income statement, a statement of changes'n.equity, and a balance sheet. Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center,established a medical practice in San Pablo, Laguna. During October 2020, the firstmonth of operations, the following transactions occurred:Dr. Marasigan transferred P250,000 from his personal checking account toa bank account, Dr. Nick Marasigan, M.D.A medical clinic, P1,000,000 and land, P250,000 were acquired by payingP50,000 in cash and issuing a 5-year, 20% note payable (interest is payableevery 6 months) for the P1,200,000 balance.Acquired medical equipment costing P420,000 and medical suppliesamounting to P39,000 by paying P59,000 cash and issuing a 24% notepayable, maturing in 6 months, for the P400,000 balance.Acquired "all-in-one" insurance for a year, P20,000.Received cash from patients amounting to P117,000.Bought medical supplies on account from San Pablo Supply, P17,000.Paid salaries of nurses and office staff, P73,000.Received P90,000 from the Laguna Experimental Drug Center for researchto be conducted by Dr. Marasigan over the next 3 months.Billed patients P317,000 for services rendered.Paid P23,000 for repairs to the medical equipment.Paid the telephone bill, P3,000.Bought medical equipment on account from Dr. De Leon, P45,000.Collected P113,000 from patients billed on the 18th.Paid P13,000 on account to San Pablo Supply.Withdrew P200,000 in cash from the medical practice.Paid P15,000 dues to the Laguna Medical Association.Oct. 11124710121821232425273030Chart of AccountsAccountNo.Account110Marasigan, CapitalMarasigan, WithdrawalsIncome SummaryMedical RevenuesCashAccounts ReceivableMedical SuppliesPrepaid InsuranceLandMedical BuildingAccumulated Depreciation-Medical BuildingMedical Equipment310120320130330140410Research RevenuesSalaries Expense150420160510Insurance Expense520165170Repairs ExpenseSupplies Expense530540Association Dues ExpenseTelephone ExpenseDepreclation Expense-Bldg.Depreciation Expense-Equipt.Interest Expense550Accumulated Dopreciation-Medical Equipnent24% Notes Payable20% Notes PayableAccounts PayableSalaries PayableInterest PayableUnearned Research Revenues175560210570220580230590240250260

Name: Complete the worksheet and prepare the statement of changes in equity.
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Description: Complete the worksheet and prepare the statement of changes in equity. Adjustments:a. Insurance for one month has expired.b. Medical supplies on hand at month-end amounted to P21,000.c. Depreciation on the medical building and on the medical equipmen

Answered: Complete the worksheet and prepare the…

Business

Accounting

Complete the worksheet and prepare the statement of changes in equity.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 32P

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