Dr. Pepito de la Torre opened a medical clinic in Las Pinas City, NCR. With the use of a two-column General Journal, record the completed transactions during the first month of its operation using the given chart of accounts. 1 - Dr. de la Torre invested cash amounting to P2,000,000 and a clinic furniture worth P2,500,000. 2 - Bought medical equipment on account from Medical Equipment Supply amounting to P750,000, paying P200,000 and issued a note for the balance. 4 - Bought medical supplies for cash, P100,000. 5 - The doctor withdrew for his personal use, P15,000. 7 - Medical fees income earned for the week: Cash P50,000 and on account P60,000. 9 - Dr. de la Torre made an additional cash investment of P350,000. 11 - Full payment of the note issued to Medical Equipment Supply P550,000. 14 - Medical fees income earned for the week: Cash P30,000 and on account P10,000. 15 - Collected in full the patient’s accounts of July 7, P60,000. 18 - Bought medical supplies on account from MEDSCO, P30,000. Page 7 of 9 July 20 - Bought an ambulance car on account P1,500,000, paying P850,000 as down payment and issued a promissory note for the balance. 25 - Paid insurance premium for the ambulance car, P25,000. 28 - Medical fees income for two weeks: Cash P40,000 and on account P70,000. 30 - Paid the following expenses: Taxes and Licenses, P20,000 and Utilities Expense, P40,000. 31 - Paid the note issued for the ambulance car. 31 - Purchased medical supplies on account from Ms. Hanna Grace, P60,000. 31 - Paid salaries to hospital employees, P100,000
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Dr. Pepito de la Torre opened a medical clinic in Las Pinas City, NCR. With the use of a two-column General
Journal, record the completed transactions during the first month of its operation using the given chart of
accounts.
1 - Dr. de la Torre invested cash amounting to P2,000,000 and a clinic furniture worth P2,500,000.
2 - Bought medical equipment on account from Medical Equipment Supply amounting to P750,000,
paying P200,000 and issued a note for the balance.
4 - Bought medical supplies for cash, P100,000.
5 - The doctor withdrew for his personal use, P15,000.
7 - Medical fees income earned for the week: Cash P50,000 and on account P60,000.
9 - Dr. de la Torre made an additional cash investment of P350,000.
11 - Full payment of the note issued to Medical Equipment Supply P550,000.
14 - Medical fees income earned for the week: Cash P30,000 and on account P10,000.
15 - Collected in full the patient’s accounts of July 7, P60,000.
18 - Bought medical supplies on account from MEDSCO, P30,000.
Page 7 of 9
July 20 - Bought an ambulance car on account P1,500,000, paying P850,000 as down payment and
issued a promissory note for the balance.
25 - Paid insurance premium for the ambulance car, P25,000.
28 - Medical fees income for two weeks: Cash P40,000 and on account P70,000.
30 - Paid the following expenses: Taxes and Licenses, P20,000 and Utilities Expense, P40,000.
31 - Paid the note issued for the ambulance car.
31 - Purchased medical supplies on account from Ms. Hanna Grace, P60,000.
31 - Paid salaries to hospital employees, P100,000
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