Adjustment Process

Oasis Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder. The account balances after all of the month's transactions were recorded appear on the first line of the integrated financial statement framework below. Adjustment data for Oasis Health Care Inc. for January are as follows:

Insurance expired, $800.

Supplies on hand on January 31, $1,100.

Depreciation on building, $2,000.

Unearned rent revenue earned, $2,500.

Wages owed employees but not paid, $1,700.

Services provided but not billed to patients, $10,000.

Instructions:

Record the adjustments for January using the integrated financial statement framework. If an amount box does not require an entry, leave it blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

Cash

+

Accounts Receivable

+

Prepaid Insurance

+

Supplies

+

Building

-

Accumulated Depreciation

+

Land

=

Accounts Payable

+

Unearned Revenue

+

Wages Payable

+

Notes Payable

+

Capital Stock

+

Retained Earnings

Balances

40,500

69,000

4,900

2,800

150,000

-11,200

120,000

6,300

15,000

0

30,000

75,000

249,700

Jan. 31.

SelectAccounts receivableCashInsurance expensePrepaid insuranceNo income statement account affectedItem 1

Jan. 31.

Balances

Jan. 31.

SelectAccounts payableRetained earningsSuppliesSupplies expenseNo income statement account affectedItem 28

Jan. 31.

Balances

Jan. 31.

SelectAccumulated depreciationBuildingDepreciation expenseNotes payableNo income statement account affectedItem 55

Jan. 31.

Balances

Jan. 31.

SelectRent expenseRent revenueRetained earningsUnearned revenueNo income statement account affectedItem 82

Jan. 31.

Balances

Jan. 31.

SelectCashInterest expenseWages expenseWages PayableNo income statement account affectedItem 109

Jan. 31.

Balances

Jan. 31.

SelectAccounts receivableCashFees earnedUnearned revenueNo income statement account affectedItem 136

Jan. 31.

Balances, Jan. 31

Statement of Cash Flows

Income Statement

Jan. 1. Operating

15,000

Jan. 20.

Fees earned

62,000

Jan. 1. Operating

-4,200

Jan. 25.

Fees earned

12,900

Jan. 9. Operating

27,500

Jan. 30.

Wages expense

-24,000

Jan. 11. Operating

-3,000

Utilities expense

6,000