P3-1 Accrual Basis Accounting SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, 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. 6 9 Paid $3,000 for a one-year general insurance business policy. Purchased supplies of $900 on account. Instructions 11 Collected $16,000 for services provided to customers on account. Paid creditors $2,500 on account. 18 Invested an additional $5,000 in the business in exchange for common stock. 20 223 25 30 30 Billed patients $26,000 for services provided on account. Received $7,500 for services provided to customers who paid cash. Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500. Paid dividends of $4,000 to stockholder (Dr. Denby).