ACC 201 homework

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Business Finance

ACC201 Principles of Accounting I

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I uploaded a word document, the question and instruction detail is very specific in there

finish this homework by excel sheet follow the instruction

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HOMEWORK #3 Due September 8, 5 pm 10 points Dr. McStuffins has a medical clinic formed as a corporation that provides specialty care services to patients. The balances in the accounts as of January 1, 2017 are as follows: Cash Accounts Receivable Office Supplies Building Land Office Fixtures and Equipment Medical Instruments Accounts Payable 5,000 Notes Payable 29,000 4,600 114,000 89,000 34,000 35,000 34,000 Contributed Capital Retained Earnings Patient Service Revenue Income Tax Expense Compensation Expense Insurance Expense Utilities Expense 75,000 164,000 37,600 0 0 0 0 0 Below are the business transactions for January: JANUARY 1 Purchased Office Fixtures and Equipment for $25,000. The clinic paid $11,000 in cash and financed the remaining balance with debt by signing a note promising to pay in three years. Ignore interest. 4 Received $31,000 of cash from an investor in exchange for 2,500 shares of stock in the clinic. 8 Purchased office supplies expected to last several months for $6,000. 10 Received $13,900 from customers on previously billed medical services (i.e., medical services provided in 2016). 15 Paid suppliers $6,000 included in accounts payable. 20 Purchased medical instruments for $8,500 in cash. 23 Billed clients $108,700 for services rendered. Of this amount, $40,000 was received in cash, and the balance was billed on account (due in 30 days). 25 Paid $3,700 in income taxes for taxes incurred during January. 27 Received a $6,400 invoice for insurance coverage in January. The entire amount is due to be paid on February 16. You can consider this an accounts payable. 28 Paid employees $42,800 in salaries for work done during the month of January. 31 Paid Light Co. $2,000 for utilities used in the clinic during the month of January. Submit all your answers to D2L in one Excel document. 1. Prepare journal entries for each transaction (list the date, accounts and amounts debited and credited in good form). Do not worry about making adjusting journal entries. 2. Create a T- account for each account used with the beginning balance provided. Post each transaction from Question 1 to the appropriate T account and determine the ending balance as of January 31. 3. Prepare a trial balance dated January 31, 2017 (see page 125 in the textbook). By referring to cells in your T-accounts bring over the balances from your T-accounts to the trial balance. Use the “Sum” function in Excel to add up your debit and credit columns. 4. Copying the appropriate amounts from the trial balance, prepare a classified income statement for the month ended January 31, 2017 (see page 126 in the textbook). Does January appear to be a profitable month for Dr. McStuffins? Explain your answer in two full sentences. You can ignore the fact that you have not made any adjusting journal entries. 5. Copying the appropriate amounts from the trial balance, prepare a balance sheet as of January 31, 2017. Use the “Sum” function in Excel for your totals and a formula to calculate ending retained earnings. (Remember: Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividends)
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Explanation & Answer

Attached.

Date

Accounts
1-Jan Equipment
cash
notes payable

Debit
Credit
25000
11000
14000

Date

Accounts
4-Jan Cash
contributed capital

Debit
Credit
31000
31000

Date

Accounts
8-Jan office supplies
accounts payable

Debit

Credit
6000
6000

Date
Accounts
10-Jan Cash
Patient revenue service

Debit
Credit
13900
13900

Date
Accounts
15-Jan Accounts payable
cash

Debit

Date
Accounts
20-Jan Medical instruments
Cash

Debit

Date
Accounts
23-Jan Cash
Accounts receivable
Service revenue

Debit
Credit
40000
68700
108700

Date
Accounts
25-Jan Income tax expense
Cash

Debit

Date
Accounts
27-Jan Insurance expense
Acconts Payable

Debit

Credit
6000
6000...


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