a local walk - in medical practice, had the following account balances on December 3 1 ,
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Question:
a local walkin medical practice, had the following account balances on December the year before: Building $ Accumulated Depreciation: Bldg $ Cash $ Common Stock $ Supplies $ Retained Earnings $ During the current year, the following transactions occurred: On March it purchased a oneyear malpractice insurance policy for $ cash. On July it borrowed $ cash from First American Bank. The interest rate on the note payable is Principal and interest are due in cash in one year. Employee salaries in the amount of $ were paid in cash. At the end of the year, $ of the supplies remained on hand. It provided $ in consulting services for cash during the current year in cash. On December $ in employee salaries were accrued. On December it received $ in cash representing advance payment for services to be provided in February next year. The annual depreciation on the building is based on a useful life of years and no salvage value. Required: A Determine the effect on the accounting equation of the preceding transactions including any related yearend adjusting entries that may be required. Hint: It may be helpful to create a table to reflect the increases and decreases in accounts. Use the minus sign to show a decrease in the account balance. B Prepare an income statement for the current year ignoring income taxes. C Prepare a statemen D Prepare a classified balance sheet as of December the current year.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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