Johnson Medical Supply Equity of $150,000 Assets of $550,000 Liabilities of $400,000 1. Bought new piece of equipment for $120.000 on 1/1/X0 2. Used $35,000 in inventory on patient services 3. Paid employees wages of $90,000 4. Billed patients for services in the amount of $360,000 5. Ordered supplies in the amount of $35,000 6. Received payment on previously billed accounts in the amount of $350,000 7. Bought inventory/supplies in the amount of $25,000 on account. 8. Bought a 3 -year insurance policy on 1/1/X0 for $12,000 9. Account for a year's worth of use on the previously paid for insurance policy 10. Account for a year's worth of straight-line depreciation of the equipment bought in \#1 with useful life of 10 years and 25% salvage value. 11. Paid on mortgage a total of $360,000/ year with $60,000 of this total being interest. Complete the journal entries and worksheets prior to answering the following questions: For \#3 Wages and Salary Expense would be a journal entry The new Equity total and the beginning balance for the next period would be: The organization made a profit or loss over this period Liabilities increased or decreased over thi period Yes or No: There is a journal entry for transaction \#5 The new Asset total and the beginning balance for the next period is: For \#4 Routine Services Revenue would bea journal entry T/F: For #10 there is a debit journal entry to Accumulated Depreciation - Equipment account T/F:#1 is an example of Capitalization in business What is the new Liabilities total and the beginning balance for the next period Yes or No: Is it possible for assets to decrease and still make a profit What were the total expenses over the period What were the total revenues over the period For #10 what is the salvage value What is the depreciation expense for one year