San Mateo Health Care Inc. is owned and operated by Rachel Fields, the sole stockholder. During January 20Y6, San Mateo Health Care entered into the following transactions: Jan. 1 Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care’s building. Hillard paid the rent nine months in advance. 1 Paid $6,000 for a one-year general insurance business policy. 6 Purchased supplies of $1,800 on account. 9 Collected $32,000 for services provided to customers on account. 11 Paid creditors $5,000 on account. 18 Invested an additional $10,000 in the business in exchange for common stock. 20 Billed patients $52,000 for services provided on account. 25 Received $15,000 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equipment, $5,300; interest, $200; and miscellaneous, $3,000. 30 Paid dividends of $8,000 to stockholder (Dr. Fields). Instructions: Analyze and record the January transactions for San Mateo Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 20Y6, balances for the balance sheet are shown below. If an amount box does not require an entry, leave it blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity cash Accounts Receivable + Prepaid Insurance + Supplies + Building - Accumulated Depreciation + Land = Accounts Payable + Unearned Revenue + Wages Payable + Notes Payable + Common Stock + Retained Earnings Balances, Jan. 1 20,000 44,500 700 1,200 150,000 -11,200 120,000 7,700 0 0 30,000 50,000 237,500 237,500 Jan. 1. Received rent revenue Balances Jan. 1. Paid insurance Balances Jan. 6. Purchased supplies Balances Jan. 9. Collected cash Balances Jan. 11. Paid creditors Balances Jan. 18. Issued common stock Balances Jan. 20. Billed patients Balances Jan. 25. Cash fees Balances Jan. 30. Paid expenses Balances Jan. 30. Paid dividends Balances Statement of Cash Flows Income Statement Jan. 1. Jan. 1. Jan. 6. Jan. 9. Jan. 11. Jan. 18. Jan. 20. Jan. 25. Jan. 30. Jan. 30. Net increase in cash Beginning cash balance, Jan. 1 Ending cash balance, Jan. 31
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.
San Mateo Health Care Inc. is owned and operated by Rachel Fields, the sole stockholder. During January 20Y6, San Mateo Health Care entered into the following transactions:
| Jan. 1 | Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care’s building. Hillard paid the rent nine months in advance. | ||
| 1 | Paid $6,000 for a one-year general insurance business policy. | ||
| 6 | Purchased supplies of $1,800 on account. | ||
| 9 | Collected $32,000 for services provided to customers on account. | ||
| 11 | Paid creditors $5,000 on account. | ||
| 18 | Invested an additional $10,000 in the business in exchange for common stock. | ||
| 20 | Billed patients $52,000 for services provided on account. | ||
| 25 | Received $15,000 for services provided to customers who paid cash. | ||
| 30 | Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equipment, $5,300; interest, $200; and miscellaneous, $3,000. | ||
| 30 | Paid dividends of $8,000 to stockholder (Dr. Fields). |
Instructions:
Analyze and record the January transactions for San Mateo Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 20Y6, balances for the
If an amount box does not require an entry, leave it blank. Enter account decreases and
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