Case 2.4: Boxed Docs-Cash Basis Key concept: Recording for-profit clinic cash basis transactions in debit/credit format B Jan. 1 Jan. 2 Jan. 3 Jan. 5 Jan. 5 Jan. 6 Jan. 25 Jan. 31 Jan. 31 Jan. 31 oxed Docs urgent care center opened on January 1. The following events took place within the month of January: Two physicians each invested $25,000 in cash, in exchange for common stock, to get the center started. They each plan to work 30 hours per week. One of the physicians took out a $25,000 second mortgage on her house to replace the cash she had invested in Boxed Docs. The clinic borrowed $20,000 from First National Bank on a one-year note at 10 percent interest. The clinic signed a $60,000 annual rental agreement and wrote check 101 for $10,000 to rent clinic space for January and February. The clinic purchased $10,000 of medical supplies on account but with a personal guarantee by one of the physicians. The clinic leased equipment and furniture for $3,000 per month, with the first month payable in advance (check 102). The clinic billed insurance companies $60,000 for patients treated and col- lected $10,000 in copays from those patients at time of service. West Town HMO sent Boxed Docs a $10,000 check as advance payment for covered HMO members. Boxed Docs owed a part-time employee $3,000 for work in January, which was to be paid on February 10. The medical supplies inventory was $4,000 at the end of the month. Assignment and Questions 1. Record the transactions, using debits and credits, on a cash basis in the form on the next page. The following template can help you remember debit/credit effects on the expanded accounting equation: Debit Credit Assets Liabilities Owners' Equity Revenues Expenses