MOUNT CARMEL SCHOOL OF INFANTA

Senior High School Department

Brgy. Ilog, Infanta, Quezon

ACCOUNTING 1
FINAL REQUIREMENT

Instruction:

1. Work on the provided comprehensive problem and provide everything that is

required.
2. Everything should be enclosed in the journal book or columnar book you have. All
previous works should be folded. Do not STAPLE or remove previous works
3. Worksheet will be submitted as well.
4. Everything should be hand written.
5. Basis for grading:
a. Correction of the entries 70
b. Complete documents 20
c. Neatness 10
6. The columnar book must a COVER with the following Format

MOUNT CARMEL SCHOOL OF INFANTA

Senior High School Department
Brgy. Ilog, Infanta, Quezon

COMPREHENSIVE PROBLEM
Final Requirement in
ACCOUNTING 1

Juan Miguel Villaflor

Grade 12 – Staff of Moses

Kaye Michelle Villaflor

Instructor

7. Due on October 9, 2018. Late submissions will not be accepted or checked.

 MOUNT CARMEL SCHOOL OF INFANTA
Senior High School Department
Brgy. Ilog, Infanta, Quezon

COMPREHENSIVE PROBLEM:

Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center,
established a medical practice in San Pablo Laguna. During October 2014, the first month of
operations, the following transactions occurred:

Oct. Dr. Marasigan transferred 250,000 from his personal checking account to a bank
1 account, Dr. Nick Marasigan, MD
1 A medical clinic, 1,000,000 and land 250,000 were acquired by paying 50,000 in cash and
issuing a 5-year, 20% note payable (interest payable every 6 months) for the 1,200,000
balance.
1 Acquired a medical equipment costing 420,000 and medical supplies amounting to
39,000 by paying 59,000 cash and issuing a 24% note payable, maturing in 6 months, for
the 400,000 balance
2 Acquired “all-in-one” insurance for a year 20,000
4 Received cash from patients amounting to 117,000
7 Bought medical supplies on account from San Pablo Supply, 17,000
10 Paid salaries of nurses and office staff, 73,000
12 Received 90,000 from the Laguna Experimental Drug Center for Research to be
conducted by Dr. Marasigan over the next 3 months
18 Billed patients 317,000 for services rendered
21 Paid 23,000 for repairs to the medical equipment
23 Paid the telephone bill, 3,000
24 Bought medical equipment on account from Dr. De Leon, 45,000
25 Collected 113,000 from patients billed on the 18th
27 Paid 13,000 on account to San Pablo Supply
30 Withdrew 200,000 in cash from the medical practice
30 Paid 15,000 dues to the Laguna Medical Associations

Required:
1. Establish the following accounts and account numbers in a ledger:

110 Cash
120 Accounts Receivable
130 Medical Supplies
140 Prepaid Insurance
150 Land
160 Medical Building
165 Accu. Dep – Bldg
170 Medical Equipment
175 Accu. Dep. – Equipment
210 24% Notes Payable
220 20% Notes Payable
230 Accounts Payable
240 Salaries Payable
250 Interest Payable
260 Unearned Research
Revenues
310 Marasigan, Capital
320 Marasigan, Withdrawals
330 Income Summary
410 Medical Revenues
420 Research Revenues
 MOUNT CARMEL SCHOOL OF INFANTA
Senior High School Department
Brgy. Ilog, Infanta, Quezon

510 Salaries Expense 540 Supplies Expense 570 Dep. Exp. – Bldg
520 Insurance Expense 550 Association Dues Expense 580 Dep. Exp. – equipment
530 Repairs Expense 560 Telephone Expense 590 Interest Expense

2. Record the transactions for the month of October in a journal (page 1-2) and post the
entries to the ledger.

3. Prepare a trial balance on a worksheet and record the following adjustments on the
worksheet:
a. Insurance for one month has expired
b. Medical supplies on hand at the end of the month amounted to 21,000
c. Depreciation on the medical building and on the medical equipment is 5,000
and 9,000 respectively
d. Unearned research revenues amounting to 30,000 have been earned
e. Salaries of 51,000 have accrued.
f. Interest on the 20% and 24% notes payable are 20,000 and 8,000 respectively.

4. Complete the worksheet and prepare an Income Statement, Changes in Equity and a
balance sheet.

5. Record the adjusting and closing entries in the journal (page 3) and post to the ledger.

6. Prepare a post-closing trial balance

7. Prepare the salaries and interest reversing entries in the journal (page 3) and post
them to the ledger.