The trial balance of Bungal Dental Clinic, owned by Dr.

Abigail Naras shows the balances of the following accounts as of De

Debit Credit
Cash on Hand 22,000
Cash in Bank 901,000
Accounts Receivable 33,000
Office Supplies 15,000
Notes Receivable 23,000
Land 250,000
Clinic Building 1,100,000
Equipment 370,000
Accumulated Depreciation - Equipment 35,000
Furniture and Fixtures 70,000
Accumulated Depreciation – Furniture and Fixtures 7,000
Accounts Payable 230,000
Long-term Notes Payable 600,000
Naras, Capital 1,224,400
Naras, Drawing 52,000
Service Income 1,344,200
Other Income 29,000
Salaries and Wages 320,000
Utilities Expenses 230,000
Transportation Expense 34,100
Advertising and Promotion 23,500
Courier Expenses 12,000
Miscellaneous Expense 10,000
Interest Expense 4,000

TOTAL 3,469,600 3,469,600

ollowing accounts as of December 31, 2020 prior to adjustments:
DATE PARTICULARS DEBIT
Dec 31, 2020 Depreciation - Clinic Building 33,333.33
Accumulated Depreciation - Clinic Building

To record depreciation of building.

Cost 1,100,000.00
Less: Residual Value (100,000.00)
Depreciable Amount 1,000,000.00
Divided by EUL 20 years
Annual Depreciation 50,000.00

Depreciation for 2020 (50,000 x 8 / 12) 33,333.33

Dec 31, 2020 Depreciation - Equipment 35,000.00

Accumulated Depreciation - Equipment
To record depreciation of equipment.

Cost 370,000.00
Less: Residual Value (20,000.00)
Depreciable Amount 350,000.00
Divided by EUL 10 years
Annual Depreciation 35,000.00

Dec 31, 2020 Depreciation - Furniture and Fixtures 7,000.00

Accumulated Depreciation - Furniture and Fixtures
To record depreciation of furniture and fixtures.

Cost 70,000.00
Divided by EUL 10 years
Annual Depreciation 7,000.00

Dec 31, 2020 Utilities Expenses 49,900.00

Accrued Utilities Payable
To record unpaid utilities as of yearend.

Electricity – 33,900 33,900.00

Water – 4,000 4,000.00
Communication – 12,000 12,000.00
Total 49,900.00

Dec 31, 2020 Interest Expense 30,000.00

Accrued Interest Payable
To record accrued interest of longterm notes.
 Face of the NP 600,000.00
Multipy by interest rate 10%
Annual Interest 60,000.00

Accrued Interest for 2020 (60,000 x 6/12) 30,000.00

Dec 31, 2020 Service Income 50,000.00

Unearned Service Income
To recognize unearned income portion of the service revenue.
(100,000 x 50%)

Dec 31, 2020 Doubtful Accounts 3,300.00

Allowance for Doubtful Accounts
To recognize doubtful accounts for the year.
(33,000 x 10%)

Dec 31, 2020 Accrued Interest Receivable 4,140.00

Interest Income
To recognize accrued interest receivable on notes.

Face of the NR 23,000.00

Multipy by interest rate 20%
Annual Interest 4,600.00

Accrued Interest for 2020 (4,600 x 324/360) 4,140.00

Dec 31, 2020 Rent Expense 10,000.00

Prepaid Rent 90,000.00
Cash In Bank
Correcting entry for unrecorded rental payment.

Dec 31, 2020 Service Income 1,294,200.00

Interest Income 4,140.00
Other Income 29,000.00
Income Summary
To close nominal accounts with credit balances.

Dec 31, 2020 Income Summary 802,133.33

Salaries and Wages
Utilities Expenses
Transportation Expense
Advertising and Promotion
Courier Expenses
Miscellaneous Expense
Depreciation - Clinic Building
 Depreciation - Equipment
Depreciation - Furniture and Fixtures
Doubtful Accounts
Rent Expense
Interest Expense
To close nominal accounts with debit balances.

Dec 31, 2020 Income Summary 525,206.67

Naras, Capital
To close income summary account to capital account.

Dec 31, 2020 Naras, Capital 52,000.00

Naras, Drawing
To close withdrawal account to capital account.

Jan 1, 2021 Accrued Utilities Payable 49,900.00

Utilities Expenses
To reverse accrued utilties expense.

Jan 1, 2021 Accrued Interest Payable 30,000.00

Interest Expense
To reverse accrued interest expense.

Jan 1, 2021 Unearned Service Income 50,000.00

Service Income
To reverse unearned income.

Jan 1, 2021 Interest Income 4,140.00

Accrued Interest Receivable
To reverse accrued interest income.
CREDIT

33,333.33

35,000.00

7,000.00

49,900.00

30,000.00
 50,000.00

3,300.00

4,140.00

- expired portion
- unexpired portion
100,000.00

1,327,340.00

320,000.00
279,900.00
34,100.00
23,500.00
12,000.00
10,000.00
33,333.33
 35,000.00
7,000.00
3,300.00
10,000.00
34,000.00

525,206.67

52,000.00

49,000.00

30,000.00

50,000.00

4,140.00
 BUNGAL DENTAL CLINIC
WORKSHEET
DECEMBER 31, 2020
ACCOUNTS TRIAL BALANCE ADJUSTMENTS
Cash on Hand 22,000.00
Cash in Bank 901,000.00
Accounts Receivable 33,000.00
Allowance for Doubtful Accounts
Accrued Interest Receivable 4,140.00
Notes Receivable 23,000.00
Prepaid Rent 90,000.00
Office Supplies 15,000.00
Land 250,000.00
Clinic Building 1,100,000.00
Accumulated Depreciation - Clinic Building
Equipment 370,000.00
Accumulated Depreciation - Equipment 35,000.00
Furniture and Fixtures 70,000.00
Accumulated Depreciation – Furniture and Fixtures 7,000.00
Accounts Payable 230,000.00
Accrued Utilities Payable
Accrued Interest Payable
Unearned Service Income
Long-term Notes Payable 600,000.00
Naras, Capital 1,224,400.00
Naras, Drawing 52,000.00
Service Income 1,344,200.00 50,000.00
Interest Income
Other Income 29,000.00
Salaries and Wages 320,000.00
Utilities Expenses 230,000.00 49,900.00
Transportation Expense 34,100.00
Advertising and Promotion 23,500.00
Courier Expenses 12,000.00
Miscellaneous Expense 10,000.00
Depreciation - Clinic Building 33,333.33
Depreciation - Equipment 35,000.00
Depreciation - Furniture and Fixtures 7,000.00
Doubtful Accounts 3,300.00
Rent Expense 10,000.00
Interest Expense 4,000.00 30,000.00
TOTAL 3,469,600.00 3,469,600.00 312,673.33
NET INCOME (LOSS)
DENTAL CLINIC
RKSHEET
BER 31, 2020
ADJUSTMENTS INCOME STATEMENT BALANCE SHEET
22,000.00
100,000.00 801,000.00
33,000.00
3,300.00 3,300.00
4,140.00
23,000.00
90,000.00
15,000.00
250,000.00
1,100,000.00
33,333.33 33,333.33
370,000.00
35,000.00 70,000.00
70,000.00
7,000.00 14,000.00
230,000.00
49,900.00 49,900.00
30,000.00 30,000.00
50,000.00 50,000.00
600,000.00
1,224,400.00
52,000.00
1,294,200.00
4,140.00 4,140.00
29,000.00
320,000.00
279,900.00
34,100.00
23,500.00
12,000.00
10,000.00
33,333.33
35,000.00
7,000.00
3,300.00
10,000.00
34,000.00
312,673.33 802,133.33 1,327,340.00 2,830,140.00 2,304,933.33
525,206.67 525,206.67
1,327,340.00 1,327,340.00 2,830,140.00 2,830,140.00
 BUNGAL DENTAL CLINIC
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020

Service Income 1,294,200.00

Add: Other Income 4,140.00
Interest Income 29,000.00 33,140.00
Gross Income 1,327,340.00
Less: Operating Expenses
Salaries and Wages 320,000.00
Utilities Expenses 279,900.00
Transportation Expense 34,100.00
Advertising and Promotion 23,500.00
Courier Expenses 12,000.00
Miscellaneous Expense 10,000.00
Depreciation - Clinic Building 33,333.33
Depreciation - Equipment 35,000.00
Depreciation - Furniture and Fixtures 7,000.00
Doubtful Accounts 3,300.00
Rent Expense 10,000.00 (768,133.33)
Operating Income 559,206.67
Less: Finance Cost
Interest Expense (34,000.00)
NET INCOME 525,206.67
 BUNGAL DENTAL CLINIC
STATEMENT OF CHANGES IN EQUITY
AS OF DECEMBER 31, 2020

Naras, Capital - January 1 1,224,400.00

Add: Net Income 525,206.67
Total 1,749,606.67
Less: Naras, Drawing (52,000.00)
Naras, Capital - December 31 1,697,606.67
 BUNGAL DENTAL CLINIC
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2020

ASSETS
CURRENT ASSETS
Cash on Hand 22,000.00
Cash in Bank 801,000.00
Accounts Receivable 33,000.00
Allowance for Doubtful Accounts (3,300) 29,700.00
Accrued Interest Receivable 4,140.00
Notes Receivable 23,000.00
Prepaid Rent 90,000.00
Office Supplies 15,000.00
Total Current Assets

NON CURRENT ASSETS

Land 250,000.00
Clinic Building 1,100,000.00
Accumulated Depreciation - Clinic Building (33,333.33) 1,066,666.67
Equipment 370,000.00
Accumulated Depreciation - Equipment (70,000) 300,000.00
Furniture and Fixtures 70,000.00
Accumulated Depreciation – Furniture and Fixtures (14,000) 56,000.00
Total Non Current Assets
TOTAL ASSETS

LIABILITIES AND OWNER'S EQUITY

CURRENT LIABILITIES
Accounts Payable 230,000.00
Accrued Utilities Payable 49,900.00
Accrued Interest Payable 30,000.00
Unearned Service Income 50,000.00
Total Current Liabilities

NON CURRENT LIABILITIES

Long-term Notes Payable

OWNER'S EQUITY
Naras, Capital
TOTAL LIABILITIES AND OWNER'S EQUITY
 984,840.00

1,672,666.67
2,657,506.67

359,900.00

600,000.00

1,697,606.67
2,657,506.67
 BUNGAL DENTAL CLINIC
POST CLOSING TRIAL BALANCE
AS OF DECEMBER 31, 2020

Cash on Hand 22,000.00

Cash in Bank 801,000.00
Accounts Receivable 33,000.00
Allowance for Doubtful Accounts 3,300.00
Accrued Interest Receivable 4,140.00
Notes Receivable 23,000.00
Prepaid Rent 90,000.00
Office Supplies 15,000.00
Land 250,000.00
Clinic Building 1,100,000.00
Accumulated Depreciation - Clinic Building 33,333.33
Equipment 370,000.00
Accumulated Depreciation - Equipment 70,000.00
Furniture and Fixtures 70,000.00
Accumulated Depreciation – Furniture and Fixtures 14,000.00
Accounts Payable 230,000.00
Accrued Utilities Payable 49,900.00
Accrued Interest Payable 30,000.00
Unearned Service Income 50,000.00
Long-term Notes Payable 600,000.00
Naras, Capital 1,697,606.67
TOTAL 2,778,140.00 2,778,140.00