Student Name Student I.D.

T-Accounts

2 Accounts Receivable 1 CASH

+ - + -
Beg. Bal 3000 Beg. Bal. 7000
(d) 8000 (a) 22,000.00
(g) 9000 (b) 25,000.00
(c) 5,000.00
(d) 47,000.00
(e) 25,000.00
(f) 3000
(g) 9000
(h) 10000
(j) 3000
(k) 4000

Bal. 2000 93000 67000

Bal. 26000

3 SUPPLIES 4 EQUIPMENTS

+ - + -
Beg. Bal. 3000 Beg. Bal. 6000
(i) 7000 (b) 25,000.00

Bal. 10000 Bal. 31000

5 Accumulated
6 OTHER ASSETS
Depreciation (xA)
- + + -
Beg. Bal. 1000 Beg. Bal. 6000
(f) 3000

Bal. 1000 Bal. 9000

16 SERVICE REVENUE

- + - +
Beg. Bal. 0 Beg. Bal. 0
(d) 55,000.00

Bal. Bal. 55000

11 Income Tax Payable 19 INTREST EXPENSE

- + - +
Beg. Bal. Beg. Bal. 0

Bal. Bal.

12 Deffered Revenue 20 OPERATING EXPENSES

+ - + -
Beg. Bal. Beg. Bal. 0
(j) 3000 (e) 30,000.00

Bal. 3000 Bal. 30000

 7 A/C. PAYABLE 8 NOTES PAYABLE

+ - + -
Beg. Bal. 5000 Beg. Bal. 0
(e) 5000 (a) 22,000.00
(h) 10000
(i) 7000

10000 17000
Bal. 7000 Bal. 22000

9 WAGES PAYABLE 10 INTREST PAYABLE

+ - + -
Beg. Bal. 0 Beg. Bal. 0

Bal. Bal.

13 CONTRIBUTED
14 RETAINED EARNINGS
CAPITAL
- + - +
Beg. Bal. 15000 Beg. Bal. 4000
(c) 5000

Bal. 20000 Bal. 4000

17 DEPRICIATION
18 INCOME TAX EXPENSE
EXPENSE
- + - +
Beg. Bal. 0 Beg. Bal. 0

Bal. Bal.

15 Dividends Declared

+ -
Beg. Bal. 0
(k) 4000

Bal. 4000
Journal Entries

a. Dr. Cash (A+)

Cr. Note Payable (+L)
Explanation: a.Borrowed $22,000 cash on July 1, 2020, signing a six-month note payable.

b. Dr. Equipment (+A)

Cr. Cash (-A)
Explanation: b.Purchased equipment for $25,000 cash on July 1,2020

c. Dr. Cash(+A)
Cr. Contibuted Capital(+S.E)
Explanation: c.Issued additional shares for $5,000

d. Dr. Cash (+A)

Dr. A/c. Recivable (+A)
Cr. Service Revenue (+R)
Explanation: d.Earned revenues for 2020, $55,000, including $8,000 on credit and $47,000 received in cash.

e. Dr. Operating Expenses (+E,-S.E.)

Cr. Cash (-A)
Cr. A/c. Payable (+L)
Explanation: e.Recognized operating expenses for 2020, $30,000, including $5,000 on credit and $25,000 in ca

f. Dr. Other Assets(+A)

Cr. Cash (-A)
Explanation: f.Purchased other assets, $3,000 cash

g. Dr. Cash (+A)

Cr. A/c. Recivable (-A)
Explanation: g.Collected accounts receivable $9,000

h. Dr. A/c. Payable(-L)

Cr. Cash (-A)
Explanation: h.Paid accounts payable $10,000

i. Dr. Supplies (+A)

Cr. A/c. Payable(+L)
Explanation: i.Purchased supplies on account for future use $7,000
j. Dr. Cash (+A)
Cr. Deffered Revenue (+L)
Explanation: j.Received a $3,000 deposit from a hospital for a contract to start January 5, 2021

k. Dr. Dividends (+S.E)

Cr. Retained Earnings (-S.E)
Explanation: k.Declared and paid a cash dividend $4,000
 22000
22000
month note payable.

25000
25000
20

5000
5000

47000
8000
55000
on credit and $47,000 received in cash.

30000
25000
5000
cluding $5,000 on credit and $25,000 in ca

3000
3000

9000
9000

10000
10000

7000
7000
 3000
3000
act to start January 5, 2021

4000
4000
 MacNeil’s Eye Clinic
Unadjusted Trial Balancesheet
1-Jan-21

sr. no. Account Titles Debits

1 Cash 26000
2 Accounts Receivable 2000
3 Supplies 10000
4 Equipment 31000
5 Accumulated Depreciation (on Equipment)
6 Other Assets 9000
7 Accounts Payable
8 Notes Payable
9 Wages Payable
10 Interest Payable
11 Income Tax Payable
12 Deferred Revenue
13 Contributed Capital
14 Retained Earnings
15 Dividends Declared 4000
16 Service Revenue
17 Depreciation Expense 0
18 Income Tax Expense 0
19 Interest Expense 0
20 Operating Expenses 30000
Total $ 112,000.00
 MacNeil’s Eye Clinic
nadjusted Trial Balancesheet
1-Jan-21

Credits

1000

7000
22000
0
0
0
3000
20000
4000

55000

$ 112,000.00
Adjusted Journal Entries

Example: Dr. Supplies (A+) 100

Cr. Cash (A-) 100
Explanation: Used cash to buy Supplies

l. Dr. Operating Expense A/c. (+E , -S.E) 7000

Cr. Supplies A/c. (-A) 7000
Explanation: 7000 Cad worth of Supplies Utilized as remaining Supplies Were 3000 Cad.

m. Dr. Depriciation Expense A/c. (+E, -S.E) 4000

Cr. Accumulated Depriciation (+) 4000
Explanation: Depriciation to be Counted as mentioned.

n. Dr. Intrest Expense A/c. (+E, -SE) 1000

Cr. Intrest Payable A/c. (+L) 1000
Explanation: Note Payable Intrest To be Paid

o. Dr. Wage Expense A/c. (+E, -SE) 3000

Cr. Wages Payable A/c. (+L) 3000
Explanation: Wages to Be paid.

p. Dr. Income Tax Expense (+E , -SE) 4000

Cr. Income Tax Payable (+L) 4000
Explanation: Income Tax Expense for 2020 To be paid in 2021.
 MacNeil's Eye Clinic
Adjusted Trial Balance Sheet
at Dec 31st,2020
(in Dollars)

Account Titles Debits

Cash 26000
Accounts Recivable 2000
Supplies 3000
Equipments 31000
Accumulated Depriciation
Other Assets 9000
Account Payable
Notes Payable
Wages Payable
Intrest Payable
Income Tax Payable
Deffered Revenue
Contributed Capital
Retained Earnings
Dividends Declared 4000
Service Revenue
Depriciation Expense 4000
Income Tax Expense 4000
Intrest Expense 1000
Wages Expense 3000
Operating Expense 37000
Total $ 124,000.00
s Eye Clinic
Balance Sheet
31st,2020
ollars)

Credits

5000

7000
22000
3000
1000
4000
3000
20000
4000

55000

$ 124,000.00
 MacNeil's Eye Clinic
Income Statement
at Dec 31st,2020
(in Dollars)

Revenues:
Service Revenue 55000
Total Revenue $55,000
Expenses:
Depriciation Expense 4000
Income Tax Expense 4000
Intrest Expense 1000
Wages Expense 3000
Operating Expense 37000
Total Expenses 49000
Net Income $ 6,000.00
 MacNeil's Eye Clinic
Retained Earnings Sheet
at Dec 31st,2020
(in Dollars)

Balance Jan 1, 2020 $4,000

Net Income 6000
Dividends -4000
Balance Dec 31, 2020 $ 6,000.00
 MacNeil's Eye Clinic
Adjusted Trial Balance Sheet
at Dec 31st,2020
(in Dollars)

Assets:
Current Assets
Cash $26,000
Accounts Receivable 2000
Supplies 3000
Total Current Assets $31,000

Equipment 31000
Less Accumulated Depreciation -5000 26000
Other Assests 9000
Total Assets $ 66,000.00

Liabilities:
Current Liabilities
Accounts Payable 7000
Notes Payable 22000
Wages Payable 3000
Intrest Payable 1000
Income tax Payable 4000
Deferred Revenue 3000
Total Current Liabilities 40000

Shareholders' Equity
Contributed Capital 20000
Retained Earnings 6000
Total Shareholders' Equity 26000
Total Liabilities & Shareholders' Equity $ 66,000.00
Eye Clinic
Balance Sheet
st,2020
llars)
 McNeil's Eye Clinic made a net profit of
Type Answer:

$6,000 in 2020. The company is primarily

financed by liabilities, with liabilities providing
funding of $40,000 of total assets and equity
providing funding of $26,000.