Question

Problem 7 Grade: out of max): On July 1, Lincoln Hospital had the following beginning balances: Assets $610,700 Liabilities $210,000 Net Assets $400,700 Transactions completed during the month of July were as follows: 1. The hospital borrowed money from a bark. 2. The hospital purchased supplies an account. 3. The hospital used supplies from inventory to provide patient care. The hospital billed patients for those supplies with a markup. 4. Employees were paid salaries and wages for the current month. 5. New equipment was purchased with cash. 6. Patients were billed for other services. 7. Part of the bank loan was paid off with a disbursement of: This payment included interest of: 8. The hospital made payment an accounts payable 9. The hospital collected an accounts receivable. $64,000 $33,200 $14,500 $32,000 347,695 34,400 $62,000 $29,500 $1,400 $8,700 343,000 Required: (1) Prepare a debit and credit analysis of the nine transactions in T-account form, including a closing entry at July 31. (2) Indicate the balance of each account at July 31. Assets Expenses Liabilities Net Assets Revenues BB, 7/1: 1 2 3 d 5 7 9 Totals Closing Entry EB, 7/31: check Ending Balances for Lincoln Hospital, July 31 Assets: Liabilities: $ Net Assets: $ Expenses: Revenues:

Answer 1

A D E F G H K Expenses Revenue W N Liabilities 210000 64000 Net Assets 400700 5 33200 3 14500 32000 4 47695 N 009 62000 1400 28100 B C с 1 Requirement 1=Taccounts 2 Date Assets 3 1-Jul 610700 4 1 64000 2 33200 6 3 14500 7 32000 8 4 47695 9 5 4400 4400 6 62000 11 7 29500 12 8 6700 13 9 43000 43000 14 Total 849300 145795 15 Closing entry 16 Closing Balance 703505 17 18 Closing Balances 19 Assets 703505 20 Liabilities 272400 21 Expenses 63595 22 Net assets 431105 23 Revenue 94000 6700 63595 0 34800 307200 400700 0 0 94000 63595 272400 431105 94000 30405 24