Assets Liabilities Stockholders' Equity Accts. Pre. Acc. Accts. Un. Wages Notes Common Pay. + Rev. + Pay. + Pay. + Stock + Earnings Retained Cash + Rec. + Ins. + Supp. + Building - Depr. + Land %3! Bal, Jan.1 20,000 44,500 700 1,200 150,000 (11,200) 120,000 7,700 30,000 50,000 237,500
Accrual basis accounting
San Mateo Health Care Inc. is owned and operated by Rachel Fields, the
sole stockholder. During January 2016. 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 Cares 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 $10000 in the business in exchange for
common stock.
20 Billed patients $52,000 for services provided on
25 Received
30 l'aid expenses as follows: wages. $31,000; utilities, $8500; rent on
medical equipi iient, $5,300; interest, $200; and miscellaneous. $3,000.
30 Paid dividends of $8000 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
shown attached.
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