Mar 1 – Rook begins practice as a family practitioner and invests $50,000 cash
Mar 1- Purchases medical equipment on account from JK Enterprises for $22,800
Mar 3 – Pays rent for office space for $1,500 for the month
Mar 3 -Employs a receptionist, Michelle Kwin
Mar 4 – Purchases medical supplies for cash $1,165
Mar 10 – Receives cash of $850 from patients for services performed
Mar 15 – Bills patients $11,560 for services performed
Mar 21 – Pays JK Enterprises on account $7,600
Mar 23 – Withdraws $3,000 cash from the business for personal use
Mar 26 – Receives $2,600 from patients on account
Mar 30 – Bills patients $6,890 for services performed
Mar 31 – Pays the following expenses in cash: Salaries and wages: $2,500; Miscellaneous office expenses: $910
Mar 31 – Medical Supplies used during the month: $695
Instructions:
Enter in appropriate general ledger accounts
(Use T Accounts)
Select from: Cash, Accounts Receivable, Supplies, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Owner’s Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, Income Summary
Do not use a drawing account
Use 10 lines for the Cash and Income Summary
Use 5 lines for all other
Record depreciation using a 5 year life on the equipment – straight line method with no salvage value
Prepare:
Trial balance
Income statement
Statement of owner’s equity
Unclassified balance sheet
Then: Close the ledger and prepare a post-closing trial balance
