Date

Oct. 1

1
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4
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10

12
18
21
23
24
25
27
30
30

a.
b.
c.
d.
e.
f.
Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a medical practice in San
Pablo, Laguna. During October 2019, the first month of operations, the following transactions occurred:
Transactions
Dr. Marasigan transferred P250,000 from his personal checking account to a bank account, Dr. Nick Marasigan, M.D
A medical clinic, P1,000,000 and land, P250,000 were acquired by paying P50,000 in cash and issuing a 5-year, 20% note
payable (interest is payable every 6 months) for the P1,200,000 balance.
Acquired medical equipment costing P420,000 and medical supplies amounting to P39,000 by paying P59,000 cash and
issuing a 24% note payable, maturing in 6 months, for the P400,000 balance.
Acquired "all-in-one" insurance for a year, P20,000.
Received cash from patients amounting to P117,000.
Bought medical supplies on account from San Pablo Supply, P17,000.
Paid salaries of nurses and office staff, P73,000.
Received P90,000 from the Laguna Experimental Drug Center for research to be conducted by Dr. Marasigan over the next
3 months.
Billed patients P317,000 for services rendered.
Paid P23,000 for repairs to the medical equipment.
Paid telephone bill, P3,000.
Bought medical equipment on account from Dr. De Leon, P45,000.
Collected P113,000 from patients billed on the 18th
Paid P13,000 on account to San Pablo Supply.
Withdrew P200,000 in cash from the medical practice.
Paid P15,000 dues to the Laguna Medical Association.

Insurance for one month has expired.

Medical supplies on hand at month-end amounted to P21,000.
Depreciation on the medical building and on the medical equipment is P5,000 and P9,000 respectively.
Unearned research revenues in the amount of P30,000 have been earned.
Salaries of P51,000 have accrued.
Interest on the 20% and 24% notes are P20,000 and P8,000 respectively.
 Date Particulars Debit
2019
Oct. 1 Cash 250,000.00
Marasigan, Capital
Record initial capital

1 Medical Building 1,000,000.00

Land 250,000.00
Cash
Notes Payable - 20%
Acquired medical building and land.

1 Medical Equipment 420,000.00

Medical Supplies 39,000.00
Cash
Notes Payable - 24%
Purchased medical equipment and medical supplies.

2 Prepaid Insurance 20,000.00

Cash
Paid insurance for a year.

4 Cash 117,000.00
Medical Revenues
Received cash for services rendered.

7 Medical Supplies 17,000.00

Accounts Payable - San Pablo Supply
Acquired medical supplies on account.

10 Salaries Expence 73,000.00

Cash
Paid salaries expense.

12 Cash 90,000.00
Unearned Research Revenues
Received cash for unearned services

18 Accounts Receivable 317,000.00

Medical Revenues
Billed patients for services rendered.

21 Repairs 23,000.00
Cash
Paid repairs expense.

23 Telephone Expense 3,000.00

Cash
Paid telephone bill.

24 Medical Equipment 45,000.00

Accounts Payable - Dr De Leon
Acquired medical equipment on accounts.
25 Cash 113,000.00
Accounts Receivable
Collection of accounts receivable.

27 Accounts Payable 13,000.00

Cash
Payment of liabilities.

30 Marasigan, Withdrawals 200,000.00

Cash
Withdrawal.

30 Association Dues 15,000.00

Cash
Paid association dues expense.
 Credit

250,000.00

50,000.00
1,200,000.00

59,000.00
400,000.00

20,000.00

117,000.00

17,000.00

73,000.00

90,000.00

317,000.00

23,000.00

3,000.00

45,000.00
113,000.00

13,000.00

200,000.00

15,000.00
 Cash Accounts Payable Marasigan,
Debit Credit Debit Credit Debit
₱ 250,000 50,000.00 ₱ 13,000 ₱ 17,000.00
117,000.00 59,000.00 45,000.00
90,000.00 20,000.00 ₱ 49,000
113,000.00 73,000.00
23,000.00 20% Notes Payable Marasigan, With
3,000.00 Debit Credit Debit
13,000.00 ₱ 1,200,000 ₱ 200,000
200,000.00
15,000.00 ₱ 1,200,000 ₱ 200,000
₱ 114,000
24% Notes Payable Medical R
Medical Building Debit Credit Debit
Debit Credit ₱ 400,000
₱ 1,000,000
₱ 400,000
₱ 1,000,000
Unearned Research Repair E
Land Debit Credit Debit
Debit Credit ₱ 90,000 ₱ 23,000
₱ 250,000
₱ 90,000 ₱ 23,000
₱ 250,000
Telephone Ex
Prepaid Insurance Debit
Debit Credit ₱ 3,000
₱ 20,000
₱ 3,000
₱ 20,000
Salaries Expen
Medical Equipment Debit
Debit Credit ₱ 73,000.00
₱ 420,000
45,000.00 ₱ 73,000
₱ 465,000
Association Dues
Debit
Medical Supplies ₱ 15,000
Debit Credit
₱ 39,000.00 ₱ 15,000
17,000.00
₱ 56,000.00

Accounts Receivable
Debit Credit
₱ 317,000 ₱ 113,000
₱ 204,000
 Marasigan, Capital Unadjusted Trial Balance
Credit
₱ 250,000 Cash 114,000.00
Bldg 1,000,000.00
₱ 250,000 Land 250,000.00
Prepaid Insurance 20,000.00
Marasigan, Withdrawal Accounts Receivable 204,000.00
Credit Equipment 465,000.00
Supplies 56,000.00
Accounts Payable 49,000.00
Notes Payable - 20% 1,200,000.00
Notes Payable - 24% 400,000.00
Medical Revenues Unearned Research Revenue 90,000.00
Credit Capital 250,000.00
₱ 117,000 Withdrwal 200,000.00
₱ 317,000 Medical Revenue 434,000.00
₱ 434,000 Telephone Expense 3,000.00
Salaries Expense 73,000.00
Repair Expense Repairs 23,000.00
Credit Assoc. Dues 15,000.00
2,423,000.00 2,423,000.00

Telephone Expense
Credit

Salaries Expense
Credit

Association Dues
Credit
 Date Particulars
2019
Oct.
31 Insurance Expense
Prepaid Insurance
Insurance for one month has expired. (20,000/12)

Supplies Expense
Medical Supplies
Expensed medical supplies.

Depreciation Expense Medical Building

Accumulated Depreciation-Medical Building
Depreciation of medical-building.

Depreciated Expense-Medical Equipment

Accumulated Depreciation-Medical Equipment
Depreciation of medical-Equipment

Unearned Research Revenues

Research Revenue
Unearned Revenues.

Salaries Expense
Salaries Payable
Accrued salaries.

Interest Expense
Interest Payable
Accrued interest - Notes Payable
 Debit Credit Bl

1,667.00
1,667.00

35,000.00
35,000.00

5,000.00
5,000.00

Depreciation
9,000.00 Cost - Salvae Value
9,000.00 life = yearly dep /12*2

30,000.00 Interest
30,000.00 Principal*Rate*Time
1,200,000 0.1 120000 20,000.00

51,000.00 400,000 0.12 48000 8,000.00

51,000.00

28,000.00
28,000.00
 Unadjusted Trial Balance A
Account Title Debit Credit
Cash 114,000
Accounts Receivable 204,000
Medical Supplies 56,000
Prepaid Insurance 20,000
Land 250,000
Medical Building 1,000,000
Accumulated Depreciation- Medical Building
Medical Equipment 465,000
Accumulated Depreciation- Medical Equipment
24% Notes Payable 400,000
20% Notes Payable 1,200,000
Accounts Payable 49,000
Salaries Payable
Interest Payable
Unearned Research Revenues 90,000
Marasigan,Capital 250,000
Marasigan, Withdrawals 200,000
Medical Revenues 434,000
Research Revenues
Salaries Expense 73,000
Insurance Expense
Repairs Expense 23,000
Supplies Expense
Association Dues Expense 15,000
Telephone Expense 3,000
Depreciation Expense- Medical Building
Depreciation Expense- Medical Equipment
Interest Expense
Total 2,423,000.00 2,423,000.00
Net Income
Grand Total
 Dr. Nick Marasigan, M.d
10 Column Worksheet
For the Month Ended October 30,2019
Adjustments Adjusted Trial Balance Income Statemen
Debit Credit Debit Credit Debit
114,000
204,000
35,000 21,000
1,667.00 18,333.00
250,000
1,000,000
5,000 5,000
465,000
9,000 9,000
400,000
1,200,000
49,000
51,000 51,000
28,000 28,000
30,000 60,000
250,000
200,000
434,000
30,000 30,000
51,000 124,000 124,000.00
1,667.00 1,667.00 1,667.00
23,000 23,000.00
35,000 35,000 35,000.00
15,000 15,000.00
3,000 3,000.00
5,000 5,000 5,000.00
9,000 9,000 9,000.00
28,000 28,000 28,000.00
159,667.00 159,667.00 2,516,000.00 2,516,000.00 243,667.00
220,333.00
464,000.00
Income Statement Balance Sheet
Credit Debit Credit
114,000
204,000
21,000
18,333
250,000
1,000,000
5,000
465,000
9,000
400,000
1,200,000
49,000
51,000
28,000
60,000
250,000
200,000
434,000
30,000

464,000 2,272,333.00 2,052,000

220,333.00
464,000.00 2,272,333.00 2,272,333.00