Question
I need to list and record each transaction under the accrual basis of accounting. Is this askiing for me to develop T Accounts for each?
I need to list and record each transaction under the accrual basis of accounting. Is this askiing for me to develop T Accounts for each?
a.The center purchased $4,000 of supplies on credit.
b.The center provided $430,000 of home health services on credit.
c.The center consumed $9,000 of supplies in the provision of its home health services.
d.The center provided $250,000 of home health services, and patients paid for services in cash. e.The center paid cash for $5,000 of supplies in the provision of its home health services.
f.The center paid $24,000 in cash for supplies previously purchased on credit.
g.A donor established a $87,000 permanent endowment fund (in the form of long-term investments) for the center. (Hint: this transaction increases the permanently restricted net assets account.)
h.The center collected $250,000 from patients for outstanding receivables.
i.The center paid $300,000 in cash toward labor expense.
j.The center paid $90,000 in cash toward its long-term loan.
k.The center purchased $35,000 in small equipment on credit. The amount is due within one year.
l.The center incurred $40,000 in general expenses. The center used cash to pay for the general expenses.
m.The center incurred $8,000 in interest expense for the year. A cash payment of $8,000 was made to the bank.
n.The center made a $9,000 cash transfer to its parent corporation.
o.The center recognized labor expense of $4,500 but does not incur a cash payment.
p.The center recognized depreciation expenses of $20,000.
q.The center estimated it would not collect $85,000 of the patient accounts receivable, and established a provision for bad debt.
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