Question

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 Care's 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: 2 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, 2016, balances for the balance sheet are shown below.

Answer 1

Liabilities Accounts Payables Unearned Revenue WagesPayables $ 3,850 $ $ $ 13,500 $ 3,850 $ 13,500 $ Equity Notes Payables Common Stock Retained Earnings $ 15,000 $ 25,000 $ 1,18,750 = $ 15,000 $ 25,000 $ 1,18,750 13,500 $ - $ 15,000 $ 25,000 $ 1,18,750 $ $ $ 3,850 $ 900 4,750 $ 13,500 $ $ 15,000 $ 25,000 $ 1,18,750 = 13,500 $ $ 15,000 $ 25,000 $ 1,18,750 Assets Cash Accounts Receivables Prepaid Insurance Supplies Building Accumu. Deprec. Land Balance $ 10,000 $ 22,250 $ 350 $ 600 $ 75.000 ls -5,600$ 60,000 Jan.1 $ 13,500 Balance $ 23,500 $ 22,250 $ 350 $ 600 $ 75,000 $ -5,600 $ 60,000 1 $ -3,000 $ 3,000 Balance $ 20,500 5 22,250 $ 3,350 $ 600 $ 75,000 $ -5,600 $ 60,000 6 $ 900 Balance $ 20,500 $ 22,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 9 $ 16,000 $ -16,000 Balance $36,500 $ 6,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 111 $ 2,500 Balance $ 34,000 $ 6,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 18 $ 5.000 Balance $ 39,000 $ 6,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 20 $ 26,000 Balance $ 39,000 $ 32,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 25$ 7,500 Balance $ 46,500 $ 32,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 301 $ -24,000 Balance $ 22,500 5 32,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 30 $ 4,000 Balance $ 18,500 $ 32,250 $ 3,350 $ 1,500 $ 75,000 $ -5,600 $ 60,000 $ $ $ 4,750 $ -2,500 2,250 $ 13,500 $ $ 1,18,750 15.000 $ $ 15,000 $ $ 2,250 $ 13,500 $ $ = = $ 2,250 $ 13,500 $ $ 15,000 $ = 25,000 $ 5,000 30,000 $ $ 30,000 $ $ 30,000 $ $ 30,000 $ $ 30,000 $ $ 2,250 $ 13,500 $ $ 15,000 $ 1,18,750 26,000 1,44,750 7,500 1,52,250 -24,000 1,28,250 -4,000 1,24,250 $ 2,250 $ 13,500S $ 15,000 $ $ 2,250 $ 13,500 $ Ş 15,000 $

Statement of Cash Flows Jan.1 $ 13,500 11 $ -3,000 9 $ 16,000 11 $ -2,500 18 $ 5,000 25 $ 7,500 30 $ -24,000 30 $ -4,000 Net increase in cash $ 8,500 Beginning balance $ 10,000 Ending balance $ 18,500 Income Staement Jan.20 $ 26,000 25 $ 7,500 Expenses 30 $ 15,500 30 $ 4,250 30 $ 2,650 30 $ 100 30 $ 1,500 Net income $ 9,500

----

Hope you Understood.
If you have any doubt please leave a comment.
Thank you.