P3-1 Accrual basis accounting Obj. 2 San Mateo Health Care Inc. is owned and operated by Rachel Fields, the sole stockholder. During January 20Y6, San Mateo Health Care entered into the following transactions: Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care's building. Hillard paid the rent nine months in advance. Paid $6,000 for a one-year general insurance business policy. Purchased supplies of $1,800 on account. Collected s32,000 for services provided to customers on account. Jan. 1 1 6 9 Paid creditors $5,000 on account. 11 Invested an additional $10,000 in the business in exchange for common stock. Billed patients $52,000 for services provided on account. 18 20 25 Received $15,000 for services provided to customers who paid cash. Paid expenses as follows: wages, $31,000, utilities, $8,500; rent on medical equip- ment, $5,300; interest, $200; and miscellaneous, $3,000. Paid dividends of $8,000 to stockholder (Dr. Fields). 30 30 Instructions Analyze and record the January transactions for San Mateo integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 20Y6, balances for the balance sheet are shown below. ealth Care Inc, using the + Stockholders Equity Liabilities Assets Accts. Un. Wages Notes Common Retained Acc. Accts. Pre. Cash + Rec. Ins. Supp. Building Bal, Jan.1 20,000 44,500 700 1,200 10000 (11,200) 1 Depr. +LandPay. Rev. Pay. Pay. Stock Earnings 150,000 (11,200) 120,000 7,700 0 0 30,000 Chapter 3 Basic Accounting Systems: Accrual Basis P3-2 Adjustment process Adjustment data for San Mateo Health Care Inc. for January are as follows: surance expired, $900. 2. Supplies on hand on January 31, $1,200. 3. Depreciation on building, $2,300. 4. Unarned rent revenue earned, $3,000. 5. Wages owed employees but not paid, $2,900. 6. Services provided but not billed to patients, $5,000. Instructions Based on the transactions recorded in January for Problem 3-1, record the adjustments for January using the integrated financial statement framework