Adjustment data for SLO Health Care Inc. for January are as follows: 1. Insurance expired, $450. 2.
Question:
Adjustment data for SLO Health Care Inc. for January are as follows:
1. Insurance expired, $450.
2. Supplies on hand on January 31, $600.
3. Depreciation on building, $1,150.
4. Unearned rent revenue earned, $1,500.
5. Wages owed employees but not paid, $1,450.
6. Services provided but not billed to patients, $2,500.
Instructions
Based on the transactions recorded in January for Problem 3-1, record the adjustments for January using the integrated financial statement framework. Enter the Net income under Income Statement column after recording all the adjustments.
Data from problem 3-1
SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January 20Y6, SLO Health Care entered into the following transactions:
Jan. 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Care’s building. Glenn paid the rent nine months in advance.
1 Paid $3,000 for a one-year general insurance business policy.
6 Purchased supplies of $900 on account.
9 Collected $16,000 for services provided to customers on account.
11 Paid creditors $2,500 on account.
18 Invested an additional $5,000 in the business in exchange for common stock.
20 Billed patients $26,000 for services provided on account.
25 Received $7,500 for services provided to customers who paid cash.
30 Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500.
30 Paid dividends of $4,000 to stockholder (Dr. Denby).
Step by Step Answer:
Financial Statement Effects Balances Adjustments Jan 31 Insurance exp Balances ...View the full answer
