68,000 122,000 71,200 Cash Accounts Receivable Office Supplies Building Land Office Fixtures and Equipment Medical Instruments Accounts Payable 47,000 Notes Payable 44,000 Contributed Capital 6,200 Retained Earnings 87,000 Patient Service Revenue 51,000 Income Tax Expense 28,000 Compensation Expense 40,000 Insurance Expense 42,000 Utilities Expense Below are the business transactions for January for Dr. McMuffin's clinic: JANUARY Purchased Office Fixtures and Equipment for $20,000. The clinic paid $10,000 in cash and financed the remaining balance with debt by signing a note promising to pay in three years. Ignore interest. Received $65,000 of cash from an investor in exchange for shares of stock in the clinic. Billed clients $75,000 for services rendered. Of this amount, $10,000 was received in cash, and the balance was billed on account (due in 30 days). Received $25,000 from customers on previously billed medical services (ie, medical services provided in 2018). Purchased office supplies on account expected to last a few months for $2,000. 15 Purchased medical instruments for $12,000 in cash. 20 Received a $2,000 invoice for insurance coverage in January. The entire amount is due to be paid on February 26. You can consider this an Account Payable. 26 Paid $5,000 in income taxes for taxes incurred during January Paid suppliers $7,000 included in accounts payable. 30 Paid Light Co. $3,000 for utilities used in the clinic during the month of January 31 Paid employees $25,000 in salaries for work done during the month of January 11 12 View as Text >> Submit all your answers to D2L in one Excel document with 5 different worksheets (one worksheet for each of the 5 below parts). 1. Prepare journal entries for each transaction (list the date, accounts and amounts debited and credited in good form). Do not worry about making adjusting journal entries. 2. Create a T-account for each account used with the beginning balance provided. Post each transaction from Question 1 to the appropriate T account and determine the ending balance as of January 31. 3. Prepare a trial balance dated January 31, 2019 (see page 128 in textbook). By referring to cells in your T-accounts bring over the balances from your T-accounts to the trial balance. Use the "Sum" function in Excel to add up your debit and credit columns. 4. Copying the appropriate amounts from the trial balance, prepare a classified income statement for the month ended January 31, 2019 (see page 129 in textbook). You can ignore the fact that you have not made any adjusting journal entries. 5. Copying the appropriate amounts from the trial balance, prepare a bal January 31, 2019 (see page 69 of the textbook). Use the "Sum" function in Excel for your totals and a formula to calculate ending retained earnings. (Remember: Ending Retained Earnings Beginning Retained Earnings + Net Income - Dividends)
