Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a medical

practice in San Pablo, Laguna. During October 2019, the first month of operations, the following
transactions occurred:

October
1 Dr. Marasigan transferred P300,000 from his personal checking account to a bank account, Dr.
Marasigan, M.D.
1 A medical clinic with a 15 years useful life, P1,250,000 and land, P250,000 were acquired by
paying P50,000 in cash and issuing a 5-year, 20% note payable (interest is payable every 6
months) for the balance.
1 Acquired a medical equipment with a salvage value of 10,000 and useful life of 5 years costing
P450,000 and medical supplies amounting to P89,000 by paying P59,000 cash and issuing a 24%
note payable, maturing in 6 months for the balance.
2 Acquired “all-in-one” insurance for a year, P20,000
3 Received cash from patients amounting to P117,000
7 Bought medical supplies from San Pablo Supply, P17,000
10 Paid salaries of nurses and office staff, P73,000
12 Received P120,000 from the Laguna Experimental Drug Center for research to be conducted by
Dr. Marasigan over the next 3 months.
18 Billed patients P317,000 for services rendered
21 Paid 23,000 for repairs to the medical equipment
23 Paid the telephone bill, P3,000
24 Bought medical equipment with an estimated useful life of 3 years from Dr. De Leon, P45,000.
25 Collected P113,000 from patients billed on the 18th.
27 Paid P13,000 on account to San Pablo Supply
30 Withdrew P100,000 in cash from the medical practice
30 Paid 15,000 dues to the Laguna Medical Association

USE THE FF. ACCOUNTS. Cash; Accounts Receivable; Medical Supplies; Prepaid Insurance; Land;
Medical Building; Accumulated Depreciation- Medical Building; Medical Equipment; Accumulated
Depreciation- Medical Equipment; 24% Notes Payable; Accounts Payable; Salaries Payable; Interest
Payable; Unearned Research Revenues; 20% Notes Payable; Marasigan, Capital; Marasigan,
Withdrawals; Medical Revenues; Research Revenues; Salaries Expense; Insurance Expense; Repairs
Expense; Supplies Expense; Association Dues Expense; Telephone Expense; Depreciation Expense-
Building; Depreciation Expense- Equipment; Interest Expense

Additional Information:
a. Medical supplies on hand at month-end amounted to P21,000
b. One month of unearned research revenue has been rendered.
c. Salaries of 51,000 have accrued.
d. Interest on the 20% and 24% notes have accrued.

Required:
1. Journal Entries
2. Unadjusted Trial Balance
3. Adjusting Entries
4. Adjusted Trial Balance
5. Statement of Financial Performance
6. Statement of Changes in Equity
7. Statement of Cash Flows
8. Statement of Financial Position