Unit 2 Chapter 03 Exercise Problems EX 03 01 EX 03 02 EX 03 06 EX 03 28 PR 03 01 PR 03 03 Hide or show questions Progress 5 6 items eBook Print Item 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 Jan 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Cares building Glenn paid the rent nine months in advance 1 Paid $3,000 for a one year general insurance business policy 6 Purchased supplies of $900 on account 9 Collected $16,000 for services provided to customers on account 11 Paid creditors $2,500 on account 18 Invested an additional $5,000 in the business in exchange for common stock 20 Billed patients $26,000 for services provided on account 25 Received $7,500 for services provided to customers who paid cash 30 Paid expenses as follows wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500 30 Paid dividends of $4,000 to stockholder (Dr Denby) Instructions Analyze and record the January transactions for SLO Health Care Inc , using the integrated financial statement framework Record each transaction by date, and show the balance for each item after each transaction Do not enter Net income under the Income Statement column The January 1, 20Y6, balances for the balance sheet are shown below If an amount box does not require an entry, leave it blank Enter account decreases and cash outflows as negative amounts using the minus sign Financial Statement Effects Balance Sheet Assets Liabilities Stockholders' Equity Cash Accounts Receivable Prepaid Insurance Supplies Building Accumulated Depreciation Land Accounts Payable Unearned Revenue Wages Payable Notes Payable Common Stock Retained Earnings Balances, Jan 1 10,000 22,250 350 600 75,000 5,600 60,000 3,850 0 0 15,000 25,000 118,750 Jan 1

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 17, 2024

Unit 2 - Chapter 03 Exercise & Problems EX.03.01 EX.03.02 EX.03.06 EX.03.28 PR.03.01 PR.03.03 Hide or show questions Progress:5/6 items eBook Print Item Accrual Basis

Unit 2 - Chapter 03 Exercise & Problems

EX.03.01
EX.03.02
EX.03.06
EX.03.28
PR.03.01
PR.03.03

Hide or show questions

Progress:5/6 items

eBook

Print Item

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:

Jan. 1		Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Cares building. Glenn paid the rent nine months in advance.
1		Paid $3,000 for a one-year general insurance business policy.
6		Purchased supplies of $900 on account.
9		Collected $16,000 for services provided to customers on account.
11		Paid creditors $2,500 on account.
18		Invested an additional $5,000 in the business in exchange for common stock.
20		Billed patients $26,000 for services provided on account.
25		Received $7,500 for services provided to customers who paid cash.
30		Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500.
30		Paid dividends of $4,000 to stockholder (Dr. Denby).

Instructions:

Analyze and record the January transactions for SLO Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. Do not enter Net income under the Income Statement column. The January 1, 20Y6, balances for the balance sheet are shown below. If an amount box does not require an entry, leave it blank. Enter account decreases and cash outflows as negative amounts using the minus sign.

Financial Statement Effects

Balance Sheet

Assets

Liabilities

Stockholders' Equity

Cash

Accounts Receivable

Prepaid Insurance

Supplies

Building

Accumulated Depreciation

Land