Dr. Francis Ong, MD got voluntary retirement at the age of 55 years from a renowned hospital.  He was residing in a condo unit which is surrounded by a slum which is inhabited by economically weaker strata of the society. As the people in that area were not aware about importance of health care, a widespread ailment had been persistently prevailing.  Dr. Ong, met with some of the well-off people of condominium and decided to open a clinic called MEDIFREE to provide them cost free medical assistance and make them aware about hygienic living, physical fitness, and economic balance diet. Many of the condo residents agreed to it. He approached health department of the town with his proposal which was accepted and an initial one time grant of P200,000 was given immediately for purchase of medical equipment and test kits for pathological tests. 10 members of the condo contributed P2,000 each as lifetime subscription to the clinic. Dr. Ong decided to charge P10 as one time registration fee from patients. Apart from above Dr. Ong made following transactions for first year: During the first year, 10,500 patients were registered for treatment and for other services. Taking reference from the above, answer following question: How much is the total income at the end of the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Dr. Francis Ong, MD got voluntary retirement at the age of 55 years from a renowned hospital.  He was residing in a condo unit which is surrounded by a slum which is inhabited by economically weaker strata of the society. As the people in that area were not aware about importance of health care, a widespread ailment had been persistently prevailing.  Dr. Ong, met with some of the well-off people of condominium and decided to open a clinic called MEDIFREE to provide them cost free medical assistance and make them aware about hygienic living, physical fitness, and economic balance diet. Many of the condo residents agreed to it. He approached health department of the town with his proposal which was accepted and an initial one time grant of P200,000 was given immediately for purchase of medical equipment and test kits for pathological tests. 10 members of the condo contributed P2,000 each as lifetime subscription to the clinic. Dr. Ong decided to charge P10 as one time registration fee from patients. Apart from above Dr. Ong made following transactions for first year:

During the first year, 10,500 patients were registered for treatment and for other services. Taking reference from the above, answer following question:

How much is the total income at the end of the year?

 

Number
Particulars
Amount
1
Purchased Medicine
P12,000
2
Purchased Equipment
9,500
3
Purchased Furnitures
10,000
4
Paid rent
8,000
5
Received fees for medical tests
45,000
6
Honorarium paid to clinic staff
35,000
7
Honorarium paid to physiotherapist and sports teacher
38,000
Transcribed Image Text:Number Particulars Amount 1 Purchased Medicine P12,000 2 Purchased Equipment 9,500 3 Purchased Furnitures 10,000 4 Paid rent 8,000 5 Received fees for medical tests 45,000 6 Honorarium paid to clinic staff 35,000 7 Honorarium paid to physiotherapist and sports teacher 38,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education