College of Business Administration

Accounting Information System

Journal Entries to Financial Statement Using Peachtree

Student Name__________________________________________ BSA/BSAT-4A August ____, 2016

Comprehensive Problem (Modified from 2015 Basic Accounting by Ballada)

Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a
medical practice in San Pablo, Laguna. During October 1 to December 31, 2017, the first three months
operations, the following transactions occurred:

Oct 01 Dr. Marasigan transferred P250,000 from his personal checking accounting to a bank account,
Dr. Nick Marasigan, M.D.
01 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. The clinic has a 15 years useful life and P100,000 residual value.
01 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. The equipment has 10 years useful life and P60,000 residual value.
02 Acquired “all-in-one” insurance for a year, P20,000.
04 Received cash from patients amounting to P117,000.
07 Bought medical supplies on account from San Pablo Supply, P17,000.
10 Paid salaries of nurses and office staff, P73,000.
12 Received P90,000 from the Laguna Experimental Drug Center for research to be conducted by
Dr. Marasigan over the next 3 months.
18 Billed patients P317,000 for services rendered.
21 Paid P23,000 for repairs to medical equipment.
23 Paid the telephone bill, P3,000.
24 Bought second-hand medical equipment on account from Dr. De Leon, P45,000. The equipment
has 5 years remaining useful life with no residual value. Whole month depreciation starts in
November.
25 Collected P113,000 from patients billed on Oct. 18.
25 Paid salaries of nurses and office staff, P110,000.
27 Paid P13,000 on account to San Pablo Supply.
30 Withdrew P100,000 cash from the medical practice.
30 Paid P15,000 annual dues to the Laguna Medical Association.

Nov 05 Bought medical supplies on account from San Pablo Supply, P44,000.
10 Paid salaries of nurses and office staff, P108,000.
12 Received cash from patients amounting to P122,000.
19 Billed patients P325,000 for services rendered.
25 Paid salaries of nurses and office staff, P109,000.
26 Paid the telephone bill, P3,000.
26 Collected P104,000 from patients billed on Oct. 18, and P115,000 from patients billed on Nov.
19.
27 Paid P40,000 on account to San Pablo Supply.
27 Withdrew P100,000 cash from the medical practice.

Dec 04 Bought medical supplies on account from San Pablo Supply, P60,000.
04 Received cash from patients amounting to P131,000.
10 Paid salaries of nurses and office staffs, P115,000.
18 Billed patients P332,000 for services rendered.
24 Collected P100,000 final payment from patients billed on Oct. 18, and P110,000 from patients
billed on Nov. 19, and P122,000 from patients billed on Dec. 18.
24 Paid salaries or nurses and office staff, P172,500.
28 Paid the telephone bill, P3,000.
28 Paid P63,000 on account to San Pablo Supply.
28 Withdrew P100,000 from the medical practice.
Required:

1. Establish the following accounts and account numbers:

Account Title Account Title
Cash Marasigan, Capital
Accounts Receivable Marasigan, Withdrawals
Medical Supplies Income Summary
Prepaid Insurance Medical Revenues
Land Research Revenues
Medical Building Salaries Expense
A/D – Medical Building Insurance Expense
Medical Equipment Repairs Expense
A/D – Medical Equipment Supplies Expense
24% Notes Payable Association Dues Expense
20% Notes Payable Telephone Expense
Accounts Payable Depreciation Expense – Building
Salaries Payable Depreciation Expense – Equipment
Interest Payable Interest Expense
Unearned Research Revenues

2. Record the necessary monthly adjustments, but not limited to the following:
a. Medical supplies on hand at end of October, P21,000; end of November, P5,000; end of December,
P7,000.
b. Salaries of P38,000 have accrued at end of each month.

3. Use the software to generate adjusted trial balance, income statement and statement of financial
position.

4. Close the calendar year 2017.

5. Generate reversing entries for November and December 2017, and January 2018.

End of quiz. Good Luck!!!