Ballada Chapter 6

Problem # Dr. Nick Marasigan, M.D.

Requirement #1 Requirement #2

Cash A/R October

250 50 317 113 1 Cash
117 59 204 Nick Marasigan, capital
90 20
113 73 1 Medical building
23 Land
3 Cash
13 Note payable
200
15 1 Medical equipment
570 456 Medical supplies
114 Cash
Note payable

2 Prepaid insurance
MS PI Cash
39 20
17 4 Cash
56 Medical revenue

7 Medical supplies
Land MB Accounts payable
250 1000
10 Salaries expense
Cash

12 Cash
A/D-Building ME Unearned research revenue
420
45 18 Accounts receivable
465 Medical revenue

21 Repair epense
Cash
A/D-M/E N/P-20%
1200 23 Telephone expense
Cash

24 Medical equipment
 Accounts payable

N/P-24% A/P 25 Cash

400 13 17 Accounts receivable
45
13 62 27 Accounts payable
49 Cash

30 Marasigan, withdrawals
Cash
S/P I/P
30 Association dues expense
Cash

URR Marasigan, cap Requirement #3

90 250 a Insurance expense
Prepaid insurance

b Supplies expense
Medical supplies
Marasigan, w/d Income Summary
200 c Dep'n exp.-MB
Dep'n exp.-M/e
A/D-MB
A/D-ME

Med revenue Research revenue d URR

117 Research revenue
317
e Salaries expense
Sal payable

f Interest exp
S/E Ins exp Interest payable
73

Repairs exp Supplies exp

23
ADE Tel exp
15 3

D/E-Bldg D/E-Eqpt PI

Interest exp
5

DR. NICK MARASIGAN, M

10-Column Working Pap
October 31, 2019

Unadjusted
Trial Balance Adjustments
Debit Credit Debit Credit
Cash 114.000
Accounts receivable 204.000
Medical supplies 56.000 b) 35,000
Prepaid insurance 20.000 a) 1,666.67
Land 250.000
Medical building 1,000.000
Accumulatwd dep'n-MB c) 5,000
Medical equipment 465.000
Accum dep'n-ME c) 9,000
24% Note payable 400.000
20% note payable 1,200.000
Accounts payable 49.000
Salaries payable e) 51,000
Interest payable f) 28,000
Unearned research revenue 90.000 d) 30,000
Marasigan, capital 250.000
Marasigan, withdrawal 200.000
Income summary
Medical revenue 434.000
Research revenue d) 30,000
Salaries expense 73.000 e) 51,000
Insurance expense a) 1,666.67
Repairs expense 23.000
Supplies expense b) 35,000
Association dues expense 15.000
Telephone expense 3.000
Depreciation expense-MB c) 5,000
Depreciation expense-ME c) 9,000
Interest expense f) 28,000
2,423.00 2,423.00 159,666.67 159,666.67
NET INCOME

DR. NICK MARASIGAN, M.D.

TRIAL BALANCE
October 31, 2019
Cash 114,000.00
Accounts receivable 204,000.00
Medical supplies 21,000.00
Prepaid insurance 18,333.33
Land 250,000.00
Medical building 1,000,000.00
Accumulatwd dep'n-MB 5,000.00
Medical equipment 465,000.00
Accum dep'n-ME 9,000.00
24% Note payable 400,000.00
20% note payable 1,200,000.00
Accounts payable 49,000.00
Salaries payable 51,000.00
Interest payable 28,000.00
Unearned research revenue 60,000.00
Marasigan, capital 250,000.00
Marasigan, withdrawal 200,000.00
Medical revenue 434,000.00
Research revenue 30,000.00
Salaries expense 124,000.00
Insurance expense 1,666.67
Repairs expense 23,000.00
Supplies expense 35,000.00
Association dues expense 15,000.00
Telephone expense 3,000.00
 Depreciation expense-MB 5,000.00
Depreciation expense-ME 9,000.00
Interest expense 28,000.00
TOTAL 2,516,000.00 2,516,000.00

FINANCIAL STATEMENTS

DR. NICK MARASIGAN, M.D.

INCOME STATEMENT
For the month ended, October 31, 2019

Medical revenue 434,000.00

Research revenue 30,000.00
Total revenue 464,000.00

Less: Operating expenses (1) 243,666.67

NET INCOME 220,333.33

DR. NICK MARASIGAN, M.D.

STATEMENT OF CHANGES IN OWNERS EQUITY
October 31, 2019

Marasigan, capital beg. 250,000.00

Add: Net income 220,333.33
Total 470,333.33
Less: Marasian, withdrawals 200,000.00
Marasigan, capital end 270,333.33

DR. NICK MARASIGAN, M.D.

STATEMENT OF FINANCIAL POSITION
October 31, 2019

ASSETS
(Notes)
Current ssets:
Cash 114,000.00
Accounts receivable 204,000.00
Prepaid assets (2) 39,333.33 357,333.33
Noncurrent Assets:
Property, plant and equipment, net (3) 1,701,000.00

TOTAL ASSETS 2,058,333.33

LIABILITIES AND OWNER'S EQUITY

Current liabilities:
Trade and other payables (4) 188,000.00
Notes payable, 24% 400,000.00 588,000.00
Noncurrent liability:
Notes payable, 20% 1,200,000.00
Total liabilities 1,788,000.00

Owner's equity:
Marasigan, capital 270,333.33

TOTAL LIABILITIES AND LIABILITIES 2,058,333.33

CLOSING ENTRIES

1 Medical revenue 434,000.00

Research revenue 30,000.00
Income Summary 464,000.00
To close nominal accounts with credit balances

2 Income summary 243,666.67

Salaries expense 124,000.00
Insurance expense 1,666.67
Repairs expense 23,000.00
Supplies expense 35,000.00
Association dues expense 15,000.00
Telephone expense 3,000.00
Depreciation expense-MB 5,000.00
Depreciation expense-ME 9,000.00
Interest expense 28,000.00
To close nominal accounts with debit balances.

3 Income summary 220,333.33

Marasigan, capital 220,333.33
To transfer net income to capital/owner's equiry account.

4 Marasigan, capital 200,000.00

Marasigan, withdrawal 200,000.00
POST-CLOSING TRIAL BALANCE

DR. NICK MARASIGAN, M.D.

Post-ClosingTrial Balance
October 31, 2019

Debit Credit
Cash 114,000.00
Accounts receivable 204,000.00
Medical supplies 21,000.00
Prepaid insurance 18,333.33
Land 250,000.00
Medical building 1,000,000.00
Accumulatwd dep'n-MB 5,000.00
Medical equipment 465,000.00
Accum dep'n-ME 9,000.00
24% Note payable 400,000.00
20% note payable 1,200,000.00
Accounts payable 49,000.00
Salaries payable 51,000.00
Interest payable 28,000.00
Unearned research revenue 60,000.00
Marasigan, capital 270,333.33

2,072,333.33 2,072,333.33

REVERSING ENTRIES

Nov 1 Sal payable 51,000.00

Salaries expense 51,000.00

Nov. 1 Interest payable 28,000.00

Interest expense 28,000.00
NOTES TO THE FINANCIAL STATEMENTS -

1 Operating Expense
Salaries expense 124,000.00
Insurance expense 1,666.67
Repairs expense 23,000.00
Supplies expense 35,000.00
Association dues expense 15,000.00
Telephone expense 3,000.00
Depreciation expense-MB 5,000.00
Depreciation expense-ME 9,000.00
Interest expense 28,000.00

2 Prepaid Assets
Medical supplies 21,000.00
Prepaid insurance 18,333.33
39,333.33
3 Property, Plant and Equipment
Accumulated Carrying
Cost Depreciarion Amount
Land 250,000.00 250,000.00
Medical building 1,000,000.00 5,000.00 995,000.00
Medical equipment 465,000.00 9,000.00 456,000.00
1,715,000.00 14,000.00 1,701,000.00

4 Trade and Other Payables

Salaries payable 51,000.00
Interest payable 28,000.00
Unearned research revenue 60,000.00
139,000.00
 250,000
Marasigan, capital 250,000

1,000,000
250,000
50,000
1,200,000

al equipment 420,000
39,000
59,000
400,000

d insurance 20,000
20,000

117,000
117,000

17,000
17,000

73,000
73,000

90,000
ned research revenue 90,000

nts receivable 317,000

317,000

23,000
23,000

hone expense 3,000

3,000

al equipment 45,000
 45,000

113,000
nts receivable 113,000
420,000
13,000
13,000

igan, withdrawals 200,000

200,000

ation dues expense 15,000

15,000

nce expense 1,667

id insurance 1,667

es expense 35,000
al supplies 35,000

5,000
9,000
5,000
9,000

30,000
rch revenue 30,000

51,000
51,000

28,000
28,000
DR. NICK MARASIGAN, M.D.
10-Column Working Paper
October 31, 2019

Adjusted Income Statement of

Trial Balance Statement Financial Position
Debit Credit Debit Credit Debit Credit
114,000.00 114,000.00
204,000.00 204,000.00
21,000.00 21,000.00
18,333.33 18,333.33
250,000.00 250,000.00
1,000,000.00 1,000,000.00
5,000.00 5,000.00
465,000.00 465,000.00
9,000.00 9,000.00
400,000.00 400,000.00
1,200,000.00 1,200,000.00
49,000.00 49,000.00
51,000.00 51,000.00
28,000.00 28,000.00
60,000.00 60,000.00
 250,000.00 250,000.00
200,000.00 200,000.00

434,000.00 434,000.00
30,000.00 30,000.00
124,000.00 124,000.00
1,666.67 1,666.67
23,000.00 23,000.00
35,000.00 35,000.00
15,000.00 15,000.00
3,000.00 3,000.00
5,000.00 5,000.00
9,000.00 9,000.00
28,000.00 28,000.00
2,516,000.00 2,516,000.00 243,666.67 464,000.00 2,272,333.33 2,052,000.00
- 220,333.33 220,333.33
464,000.00 464,000.00 1,894,333.33 1,894,333.33