Exercise 5-10
The following January:
2 are the transactions of Cancer Medical Clinic for the month of Dr. Candie Cervantes invested cash amounting to P200,000 and a medical equipment with a value of P50,000 to start up her clinic. P10,000 of the medical equipment remains unpaid to TERMINAL MEDICAL EQUIPMENT. The unpaid balance is to be assumed by Cancer Medical Clinic.
3 Necessary permits and licenses were acquired and paid for P7,500.
4 Hired two staffs for the clinic for monthly salaries of P8,000 each.
5 Acquired furniture for the clinic from KAR PINTERO, P20,000. Terms: 50% down, the balance by a promissory note.
7 Bought supplies for the clinic and paid cash, P8,000.
8 Paid the account to Terminal Medical Equipment.
10 Revenues earned for the day for medical services rendered: from cash patients P12,000; from account patients P20,000; and from patients who issued a written promise to pay P35,000.
12 Commissions were received from various medicine companies, P10,000.
13 Paid for the advertisement of the clinic aired over the radio, P5,000.
15 Paid the half-month salary of staffs.
17 Yuti Ay paid P5,000 for medical services rendered to her by the clinic.
18 Collected from account patients of January 10.
20 Cash received from various patients for services rendered to them, P30,000.
21 Paid the promissory note to KAR PINTERO.
22 Billed TSU for the annual medical checkup of its employees, P75,000.
25 Received bills from Water District P1,500; PLDT P2,000; and Meralco 1,700.
27 Paid the monthly rental of the clinic, P12,000.
28 Sacky Tin paid P10,000 cash for medical services rendered to him.
29 Paid the bills previously received from Water District, PLDT and Meralco.
30 Additional commissions were received from various medicine companies, P12,000.
31 Paid the semi-monthly salaries of staffs.
Required
1. Journalize the transactions using the following CHART OF ACCOUNTS: 110 Cash; 120 Accounts Receivable; 130 Notes Receivable; 140 Unused Supplies; 150 Furniture and Fixtures; 160 Equipment; 210 Accounts Payable; 220 Notes Payable ; 230 Utilities Payable; 310 Cervantes , Capital; 320 Cervantes, Personal; 410 Professional Fees; 420 Commission Income, 510 Salaries and Wages; 520 Advertising Expense;530 Taxes and Licenses; 540 Utilities Expense; 550 Rental Expense.
2. Open the general ledger and post the entries.
3. Prepare the trial balance as of January 31. General Ledger Account Name: Date Particulars Account No. DEBIT CREDIT BALANCE
