Question

For your fictitious healthcare service: 2. February 1, 2019: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and a salvage value of $50,000. You use straight-line depreciation. 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients. 4. April 1, 2019: All of your budgeted staff members begin working. They are paid on a monthly basis, with the first payroll date of April 1, 2019. Each payroll date occurs on the 1st of each month. 5. May 1, 2019 through December 31, 2019: You begin accepting your first patients. You provide $300,000 in healthcare services for each month through the end of the calendar year. You invoice your patients' health insurance companies on the last day of each month. 6. May 1, 2019 through December 31, 2019: You use $30,000 in supplies to provide healthcare services to your patients each month. You record the use of supplies on the last day of each month. 7. June 1, 2019: You pay your suppliers $80,000 for supplies purchased on credit. 8. July 1, 2019: You receive payments from health insurance companies totaling $250,000. 9. August 1, 2019: a. You purchase $60,000 of supplies on credit for use in caring for your patients. b. You receive payments from health insurance companies totaling $320,000 10. September 1, 2019: You receive payments from health insurance companies totaling $225,000. 11. October 1, 2019: You receive payments from health insurance companies totaling $310,000. 12. November 1, 2019: a.You receive payments from health insurance companies totaling $240,000. b. You pay your suppliers $40,000 for supplies purchased on credit. 13. December 1, 2019: You receive payments from health insurance companies totaling $330,000. 14. December 15, 2019: You make a payment to your equipment financing company of $25,000. 15. How do you calculate the account payable?

Answer 1

Particulars	Type	Amount
March 1, 2019	Purchase	$ 1,00,000
May 1, 2019	Payment	$   -80,000
August 1, 2019	Purchase	$     60,000
November 1, 2019	Payment	$   -40,000
Supplies $30000 for each month from May to Dec	Purchase	$ 2,40,000
Total		$ 2,80,000