(P3-2) and (p3-3)

Problems P3-1 Accrual basis accounting Oasis Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder During January 20Y6, Oasis Health Care entered into the following transactions Jan. 1 Received $15,000 from Rivers Company as rent for the use of a vacant office in Oasis Health Care's building. Rivers paid the rent six months in advance Paid $4,200 for an insurance premium on a general business policy 6 Purchased supplies of $1,800 on account Collected $27,500 for services provided to customers on account. Paid creditors $3,000 on account. Invested an additional $25,000 in the business in exchange for capital stock. Billed patients $62,000 for services provided on account. Received $12,900 for services provided to customers who paid cash. Paid expenses as follows: wages, $24,000; utilities, $6,000, rent on medical equip 1 9 11 18 20 25 30 ment, $5,000; interest, $200; and miscellaneous, $2,500 Paid dividends of $15,000 to stockholders (Dr. Hancock). 50 Instructions Analyze and record the January transactions for Oasis Health Care Inc., using the integrated nancial 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. Liabilities Equity Assets Accts. Un. Wages Notes Capital Retained Cash + Rec. Ins+Supp +Building-Depr +Land Pay.+ Rev.+ Pay. +Pay.+Stock Earnings Bal. Jan. 120,000500 700 1,000 150,000-11,200 120.00025000 0 30,oo, so,000 227,500 Accts. Pre Acc P3-2 Adjustment process Adjustment data for Oasis Health Care Inc, for January are as follows: 1. Insurance expired, $800. 2. Supplies on hand on January 31, $1,100. 3. Depreciation on building, $2,000. Obj 3 Unearned rent revenue earned, $2,500. 5. Wages owed employees but not paid, $1,700. 6. Services provided but not billed to patients, $10,000. Instructions Based on the transactions recorded in Jamuary for Problem 3-1, record the adjustments for January using the integrated financial statement framework P3-3 Financial statements Data for Oasis Health Care for January are provided in Problems 3-1 and 3-2 Prepare an income statement, retained earnings statement, and a classified balance sheet fos January. The note payable is due in ten years 1. Net income Problems P3-1 Accrual basis accounting Oasis Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder During January 20Y6, Oasis Health Care entered into the following transactions Jan. 1 Received $15,000 from Rivers Company as rent for the use of a vacant office in Oasis Health Care's building. Rivers paid the rent six months in advance Paid $4,200 for an insurance premium on a general business policy 6 Purchased supplies of $1,800 on account Collected $27,500 for services provided to customers on account. Paid creditors $3,000 on account. Invested an additional $25,000 in the business in exchange for capital stock. Billed patients $62,000 for services provided on account. Received $12,900 for services provided to customers who paid cash. Paid expenses as follows: wages, $24,000; utilities, $6,000, rent on medical equip 1 9 11 18 20 25 30 ment, $5,000; interest, $200; and miscellaneous, $2,500 Paid dividends of $15,000 to stockholders (Dr. Hancock). 50 Instructions Analyze and record the January transactions for Oasis Health Care Inc., using the integrated nancial 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. Liabilities Equity Assets Accts. Un. Wages Notes Capital Retained Cash + Rec. Ins+Supp +Building-Depr +Land Pay.+ Rev.+ Pay. +Pay.+Stock Earnings Bal. Jan. 120,000500 700 1,000 150,000-11,200 120.00025000 0 30,oo, so,000 227,500 Accts. Pre Acc P3-2 Adjustment process Adjustment data for Oasis Health Care Inc, for January are as follows: 1. Insurance expired, $800. 2. Supplies on hand on January 31, $1,100. 3. Depreciation on building, $2,000. Obj 3 Unearned rent revenue earned, $2,500. 5. Wages owed employees but not paid, $1,700. 6. Services provided but not billed to patients, $10,000. Instructions Based on the transactions recorded in Jamuary for Problem 3-1, record the adjustments for January using the integrated financial statement framework P3-3 Financial statements Data for Oasis Health Care for January are provided in Problems 3-1 and 3-2 Prepare an income statement, retained earnings statement, and a classified balance sheet fos January. The note payable is due in ten years 1. Net income