The following accounts balances appeared in the general ledger of Dr. Jin Jan at the end of December 31, 2011, the second year of his private medical practice: Cash 356,927.00 Accounts Receivable 205,000.00 Allowance for Bad Debts 7,550.00 Prepaid Supplies Library Accumulated Depreciation - Library Medical Equipment Accumulated Depreciation - Medical Equipment Loans Payable Accounts Payable Taxes Payable Jin Jan, Capital Jin Jan, Drawings 11,500.00 155,000.00 15,500.00 96,000.00 2,000.00 200,000.00 18,000.00 427.00 180,650.00 42,000.00 Medical Fees Earned 729,000.00 Salaries Expense Rent Expense Taxes and Licenses Expenses Utilities Expense Interest Expense 72,000.00 110,000.00 9,000.00 75,700.00 20,000.00 Data for adjustments are as follows: a. Rent expense represents payment for November 1, 2011 to September 30, 2012. b. The property and equipment has 10 years useful life with no salvage value. The Library is part of the doctor's investment at the start of his practice on January 1, 2010 while the medical equipment were acquired in two groups: P48,000 was acquired August 1, 2010 and the balance was acquired February 1, 2011. c. Included in the medical fees is P12,500 received in advance for surgical services to be rendered January 9, 2012. d. Only P3,500 of the supplies has not been used up.
The following accounts balances appeared in the general ledger of Dr. Jin Jan at the end of December 31, 2011, the second year of his private medical practice: Cash 356,927.00 Accounts Receivable 205,000.00 Allowance for Bad Debts 7,550.00 Prepaid Supplies Library Accumulated Depreciation - Library Medical Equipment Accumulated Depreciation - Medical Equipment Loans Payable Accounts Payable Taxes Payable Jin Jan, Capital Jin Jan, Drawings 11,500.00 155,000.00 15,500.00 96,000.00 2,000.00 200,000.00 18,000.00 427.00 180,650.00 42,000.00 Medical Fees Earned 729,000.00 Salaries Expense Rent Expense Taxes and Licenses Expenses Utilities Expense Interest Expense 72,000.00 110,000.00 9,000.00 75,700.00 20,000.00 Data for adjustments are as follows: a. Rent expense represents payment for November 1, 2011 to September 30, 2012. b. The property and equipment has 10 years useful life with no salvage value. The Library is part of the doctor's investment at the start of his practice on January 1, 2010 while the medical equipment were acquired in two groups: P48,000 was acquired August 1, 2010 and the balance was acquired February 1, 2011. c. Included in the medical fees is P12,500 received in advance for surgical services to be rendered January 9, 2012. d. Only P3,500 of the supplies has not been used up.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 48BE: Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for...
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Prepare Statement of Financial Performance for the year ended December 31, 2011.
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