The following accounts balances appeared in the general ledger of Dr. Jin Jan at the end of December 31, 2011, the second year of his private medical practice: Cash 356,927.00 Accounts Receivable 205,000.00 Allowance for Bad Debts 7,550.00 Prepaid Supplies Library Accumulated Depreciation - Library Medical Equipment Accumulated Depreciation - Medical Equipment Loans Payable Accounts Payable Taxes Payable Jin Jan, Capital Jin Jan, Drawings 11,500.00 155,000.00 15,500.00 96,000.00 2,000.00 200,000.00 18,000.00 427.00 180,650.00 42,000.00 Medical Fees Earned 729,000.00 Salaries Expense Rent Expense Taxes and Licenses Expenses Utilities Expense Interest Expense 72,000.00 110,000.00 9,000.00 75,700.00 20,000.00 Data for adjustments are as follows: a. Rent expense represents payment for November 1, 2011 to September 30, 2012. b. The property and equipment has 10 years useful life with no salvage value. The Library is part of the doctor's investment at the start of his practice on January 1, 2010 while the medical equipment were acquired in two groups: P48,000 was acquired August 1, 2010 and the balance was acquired February 1, 2011. c. Included in the medical fees is P12,500 received in advance for surgical services to be rendered January 9, 2012. d. Only P3,500 of the supplies has not been used up.
The following accounts balances appeared in the general ledger of Dr. Jin Jan at the end of December 31, 2011, the second year of his private medical practice: Cash 356,927.00 Accounts Receivable 205,000.00 Allowance for Bad Debts 7,550.00 Prepaid Supplies Library Accumulated Depreciation - Library Medical Equipment Accumulated Depreciation - Medical Equipment Loans Payable Accounts Payable Taxes Payable Jin Jan, Capital Jin Jan, Drawings 11,500.00 155,000.00 15,500.00 96,000.00 2,000.00 200,000.00 18,000.00 427.00 180,650.00 42,000.00 Medical Fees Earned 729,000.00 Salaries Expense Rent Expense Taxes and Licenses Expenses Utilities Expense Interest Expense 72,000.00 110,000.00 9,000.00 75,700.00 20,000.00 Data for adjustments are as follows: a. Rent expense represents payment for November 1, 2011 to September 30, 2012. b. The property and equipment has 10 years useful life with no salvage value. The Library is part of the doctor's investment at the start of his practice on January 1, 2010 while the medical equipment were acquired in two groups: P48,000 was acquired August 1, 2010 and the balance was acquired February 1, 2011. c. Included in the medical fees is P12,500 received in advance for surgical services to be rendered January 9, 2012. d. Only P3,500 of the supplies has not been used up.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare Statement of Financial Performance for the year ended December 31, 2011.
Transcribed Image Text:The following accounts balances appeared in the general ledger of Dr. Jin Jan at the end of
December 31, 2011, the second year of his private medical practice:
Cash
356,927.00
Accounts Receivable
205,000.00
Allowance for Bad Debts
7,550.00
Prepaid Supplies
11,500.00
Library
155,000.00
Accumulated Depreciation - Library
Medical Equipment
Accumulated Depreciation – Medical Equipment
Loans Payable
15,500.00
96,000.00
2,000.00
200,000.00
Accounts Payable
Taxes Payable
18,000.00
427.00
Jin Jan, Capital
Jin Jan, Drawings
180,650.00
42,000.00
Medical Fees Earned
729,000.00
Salaries Expense
Rent Expense
Taxes and Licenses Expenses
Utilities Expense
Interest Expense
72,000.00
110,000.00
9,000.00
75,700.00
20,000.00
Data for adjustments are as follows:
a. Rent expense represents payment for November 1, 2011 to September 30, 2012.
b. The property and equipment has 10 years useful life with no salvage value. The
Library is part of the doctor's investment at the start of his practice on January 1, 2010
while the medical equipment were acquired in two groups: P48,000 was acquired
August 1, 2010 and the balance was acquired February 1, 2011.
c. Included in the medical fees is P12,500 received in advance for surgical services to be
rendered January 9, 2012.
d. Only P3,500 of the supplies has not been used up.
e. Taxes accrued at the end of the year amounted to P2,500. This will be paid early next
year.
Included in the loan payable balance is the total amount of P100,000 18% loans payable
to Vshi. The loan was made 2 months ago.
g. Received a bill from Meralco for electric consumption for the month of December,
P3,500. This was not paid until January next year.
h. A provision for uncollectible accounts equal to 5% of the outstanding accounts
f.
receivable.
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