p3-1, p3-2, p3-3

Chapter 3 Basic Accounting Systems Accrual Bass 133 Uabilities Current liabilities Accounts receivable.......... Accumulated depreciation-building................. ******** Accumulated depreciation equipment.............. Net loss. Total liabilities....... Stockholders' Equity Wages payable........... . Common stock. ............. Retained earnings... Total stockholders' equity.. . Total liabilities and stockholders' equity ....... $ 40.000 54,600 32.400 44,200 $172.000 $ 100 200,000 447000 655,100 5297/100 Problems Obj. 2 P3-1 Accrual basis accounting 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: Jan. 1 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. 1 Paid $6,000 for a one-year general insurance business policy. 6 Purchased supplies of $1,800 on account. 9 Collected $32,000 for services provided to customers on account 11 Paid creditors $5,000 on account. 18 Invested an additional $10,000 in the business in exchange for common stock. 20 Billed patients $52,000 for services provided on account. 25 Received $15,000 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equip- ment, $5,300; interest, $200; and miscellaneous, $3,000. 30 Paid dividends of $8,000 to stockholder (Dr. Fields). Instructions Analyze and record the January transactions for San Mateo Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 2016, balances for the balance sheet are shown below. Assets Accts. Pre Acc. Cash + Rec. + Ins. + Supp. + Building - Depr. + Land Bal, Jan. 1 20,000 44,500 700 1,200 150,000 (11,200) 120,000 Accts. Pay. 7,700 Liabilities + Stockholders' Equity Un. Wages Notes Common Retained Rev. + Pay. + Pay. + Stock + Earnings 0 0 30.000 50,000 237.500 Chapter 3 Basic Accounting Systems: Accrual Basis P3-2 Adjustment process Adjustment data for San Mateo Health Care Inc. for January are as follows: 1. Insurance expired, $900. 2. Supplies on hand on January 31, $1,200. 3. Depreciation on building, $2,300. 4. Unearned 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. P3-3 Financial statements Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2. Instructions Prepare an income statement, statement of stockholders' equity, and a classified balance sheet for January. The note payable is due in ten years. P3-4 Statement of cash flows Data for San Mateo Health Care for January are provided in Problems 3-1, 3-2, and Instructions 1. Prepare a statement of cash flows for January 2. Reconcile the net cash flows from operating activities with the net income for (Hint: See the appendix to this chapter and use adjusted balances in computing come for January puting increases