PROBLEM IV:

Presented below is the balance sheet for the Leopoldo Medina Nursing Home:

Leopoldo Medina Nursing Home

Balance Sheet

Dec. 31, 2015

Assets

Cash Php 16,000

Accounts Receivable 165,000

Supplies 21,000

Land 90,000

Nursing Home 350,000

Nursing Equipment 160,000

Total Assets Php 802,000

Liabilities and Owner's Equity

Liabilities

Notes Payable Php 350,000

Accounts Payable 47,000

Total Liabilities Php 397,000

Owner's Equity

Medina, Capital Php 405,000

Total Liabilities and Owner's Equity Php 802,000

During the month of January 2016, the following transactions took place:

January2 Acquired supplies on account, Php 17,500.

6 Collected Php 82,000 from patients for services provided in 2015.

10 Acquired nursing equipment on account, Php 35,000.

11 Billed patients Php 167,000 for nursing fees.

12 Paid Php 31,000 on accounts payable.

17 Paid nursing salaries, Php 24,000.

20 Paid utilities expense, Php 9,000.

25 Medina withdrew Php 10,000 from the business.

27 Received a bill from the Ryan Morales Ad Agency for Php 12,500 for advertising expense incurred during the month. 31 Paid Php 15,000 of the notes payable.

Required:

1. Enter the Dec. 31, 2015 balances in a financial transaction worksheet.

2. Record the transactions for the month of January 2016.