P$3-1$ Accrual basis of accounting

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January $20$Y$6,$ SLO Health Care entered into the following transactions:

Obj. $2$

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

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 $1,20Y6,$ balances for the balance sheet are as follows: