Accrual Basis Accounting SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, SLO Health Care entered into the following transactions: Jan. 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Care's building. Glenn paid the rent nine months in advance. 1 Paid $3,000 for a one-year general insurance business policy. 6 Purchased supplies of $900 on account. 9 Collected $16,000 for services provided to customers on account. 11 Paid creditors $2,500 on account. 18 Invested an additional $5,000 in the business in exchange for common stock. 20 Billed patients $26,000 for services provided on account. 25 Received $7,500 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500. 30 Paid dividends of $4,000 to stockholder (Dr. Denby). Instructions: 2 Analyze and record the January transactions for SLO Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. Do not enter Net income under the Income Statement column. The January 1, 2016, balances for the balance sheet are shown below. If an amount box does not require an entry, leave it blank. Enter account decreases and cash outflows as negative amounts using the minus sign. Financial Statement Effects Balance Sheet Assets Stockholders' Liabilities + Equity Accounts Prepaid Accumulated Accounts Unearned Wages Notes Common Retained Cash + Receivable + Insurance + Supplies + Building - Depreciation + Land = Payable + Revenue + Payable + Payable + Stock + Earnings Balances, Jan. 1 10,000 22,250 350 600 75,000 -5,600 60,000 3,850 0 0 15,000 25,000 118,750 Jan. 1. Received rent revenue Balances 1. Paid insurance Balances 6. Purchased supplies Balances 9. Collected cash Balances 11. Paid creditors Balances 18. Issued common stock Balances 20. Billed patients Balances 25. Cash fees Balances 11. Talu creditors Balances 18. Issued common stock Balances 20. Billed patients Balances 25. Cash fees Balances 30. Paid expenses Balances 30. Paid dividends Balances Statement of Cash Flows Income Statement Jan. 1. Jan. 20. Jan. 1. Jan. 25. Jan. 30. Jan. 9. Jan. 11. Jan. 30. Jan. 18. Jan. 30. Jan. 25. Jan. 30. Jan. 30. Jan. 30 Jan. 30. Net increase in cash Beginning. cash balance, Jan. 1 Ending cash balance, Jan. 31