MODULE 3 - Lesson 1 - BUSINESS TRANSACTIONS AND THEIR ANALYSIS AS APPLIED TO SERVI

ASSIGNMENT 6

REQUIREMENTS:
1. Journalize the December transactions of P. Atay Medical Clinic.
2. Post the journal entries using "T" accounts.
3. Prepare a 10-column worksheet with column headings: Unadjusted Trial Balance, Adjustments,
Adjusted Trial Balance, Income Statement and Balance Sheet.
4. Prepare a formal Income Statement and Balance Sheet.
5. Prepare closing entries.
6. Prepare a Post Closing Trial Balance.

Dr. Peter Atay, a physician surgeon established P. ATAY MEDICAL CLINIC on November 1, 2020.
The following is the clinic's unadjusted trial balance after its first month of operation.

P. ATAY MEDICAL CLINIC

UNADJUSTED TRIAL BALANCE
November 30, 2020

ACCOUNT TITLE DEBIT CREDIT

CASH 94,000
PREPAID INSURANCE 12,000
FURNITURE & FIXTURES 30,000
CLINIC EQUIPMENTS 72,000
ACCOUNTS PAYABLE 70,000
NOTES PAYABLE 40,000
P. ATAY, CAPITAL 100,000
P. ATAY, DRAWING 20,000
PROFESSIONAL FEES 55,000
SALARIES EXPENSE 15,000
RENT EXPENSE 10,000
UTILITIES EXPENSE 8,000
TAXES AND LICENSES 4,000
TOTALS 265,000 265,000

The following are transactions for the month of December, 2020.

Dec. 14 - Dr. P. Atay rendered professional service to various patients and received ₱60,000 cash.
Dec. 15 - Paid secretary's half-month's salary, ₱7,500.
Dec. 16 - Paid 40% of the accounts payable.
Dec. 20 - Performed surgery to a patient with total bill of ₱50,000 but patient had no enough cash,
paid only ₱30,000 and promised to pay the balance on Dec. 30, 2020.
Dec. 30 - Dr. P. Atay rendered professional service to various patients and received ₱35,000 cash.
Dec. 31 - Dr. P. Atay paid ₱10,000 rent, ₱8,000 for utilities and ₱7,500 for the secretary's half-month
salary.
Dec. 31 - Dr. P. Atay withdrew ₱40,000 from the business for his personal use.

Additional information (for the adjusting entries):

1. Prepaid insurance is for the period covering Nov. 1, 2020 to October 31, 2021.
2. Furniture & fixtures were acquired on Nov. 1, 2020 with estimated useful life of 5 years.
3. Clinic equipments were likewise acquired on Nov. 1, 2020 with 3 years estimated useful life.
4. In relation to the Dec. 20 transaction, because of the patient's failure to pay on Dec. 30 as he,
promised, Dr. P. Atay decided to consider 25% of the receivable as doubtful and uncollectible.
5. Additional accounts to be used: Accounts receivable, Insurance expense, Depreciation, Bad debts,
Accumulated depreciation-Furniture & fixtures, Accumulated depreciation-Clinic equipment, and
Allowance for doubtful accounts.

REQUIREMENTS:
1. Journalize the December transactions of P. Atay Medical Clinic.
2. Post the journal entries using "T" accounts.
3. Prepare a 10-column worksheet with column headings: Unadjusted Trial Balance, Adjustments,
Adjusted Trial Balance, Income Statement and Balance Sheet.
4. Prepare a formal Income Statement and Balance Sheet.
5. Prepare closing entries.
6. Prepare a Post Closing Trial Balance.
S AS APPLIED TO SERVICE BUSINESS

ovember 1, 2020.
P. ATAY MEDICAL CLINIC
Page 1
JOURNAL BOOK
DATE ACCOUNT DEBIT
JOURNAL ENTRIES
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Page 1

CREDIT
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P. ATAY MEDICAL CLINIC
WORKSHEET
December 31, 2020
UNADJUSTED ADJUSTED
ADJUSTMENTS
ACCOUNT TITLE TRIAL BALANCE TRIAL BALANCE
DEBIT CREDIT DEBIT CREDIT DEBIT

ADJUSTMENTS:

TOTALS
NET INCOME(LOSS)
GRAND TOTALS
ADJUSTED
INCOME STATEMENT BALANCE SHEET
TRIAL BALANCE
CREDIT DEBIT CREDIT DEBIT CREDIT
FINANCIAL STATEMENTS AND POST CLOSING TRIAL BALANCE: