COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

PROBLEM 1
Dr. Marasigan, upon completing a residency program at Harvard Medical Center, established a medical practice in
San Pablo City. During October 2015, the first month of operations, the following transactions occurred:
Oct. 1 Dr. Marasigan transferred P250,000 from his personal checking account to a bank account, Dr.
Marasigan M.D.
1 A medical clinic, P1,000,000 and land, P250,000 were acquired by paying P50,000 in cash and issuing
a 5-year, 20% note payable (interest is payable every six months) for the P1,200,000 balance.
1 Acquired medical equipment costing P420,000 and medical supplies amounting to P39,000 by
paying P59,000 cash and issuing a 24% note payable, maturing in 6 months, for the P400,000
balance.
2 Acquired “all-in-one” insurance for a year, P20,000.
4 Received cash from patients amounting to P117,000.
7 Bought medical supplies on account from San Pablo Supply, P17,000.
10 Paid salaries of nurses and office staff, P73,000.
12 Received P90,000 from 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 P23,000 for repairs to the medical equipment.
23 Paid the telephone bill, P3,000.
24 Bought medical equipment on account 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 P200,000 in cash from the medical practice.
30 Paid P15,000 dues to the Laguna Medical Association.

REQUIRED: (USE MS EXCEL)

1. Record the transactions for the month of October in a journal and post the transactions to the ledger.
2. Journalize the adjusting entry on the following events and in relation to the transactions above.
a. Insurance for one month has expired.
b. Medical supplies on hand at month-end amounted to P21,000.
c. Depreciation in the medical building and on the medical equipment is P5,000 and P9,000,
respectively.
d. Unearned research revenues in the amount of P30,000 have been earned.
e. Salaries of P51,000 have accrued.
f. Interests on the 20% and 24% notes are P20,000 and P8,000, respectively.

FINANCIAL ACCOUNTING AND REPORTING 1

 COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

PROBLEM 2
The accounts and transactions of Haydee Kalaw, Systems Consultant, for the month of April are shown below:

April 2 Invested P150,000 in cash, (P100,000 from personal savings and P50,000 from a bank loan) to
start the business.
3 Paid P15,000 for the office’s rent (2-months advanced, 1-month deposit).
4 Purchased a 1-year insurance for P8,000.
5 Bought office furniture for P26,000 in cash.
5 Purchased office supplies for P6,200.
7 Performed services for P22,750 in cash.
9 Performed services for P10,500 on account.
10 Bought a desktop computer for P55,000; paid 50% down, balance in 30 days.
12 Acquired a personal copier for P39,500 on credit; paid P9,500 cash, balance due in 15 days.
13 Received P7,000 from credit clients.
14 Bought additional office chairs for P8,000 on credit.
15 Issued a check for P32,500 to pay for salaries.
17 Performed services for P10,250 in cash.
19 Performed services for P11,500 on account.
20 Collected P6,000 on accounts receivables.
21 Issued a check for P4,000 in partial payment of the amount owed for the office chairs.
23 Haydee issued a check for P10,000 to pay personal expenses.
24 Paid miscellaneous expenses for P325.25
25 Purchased additional supplies for P2,400.
26 Performed services for P11,500 on account.
27 Paid P2,250 for the monthly telephone bill.
27 Paid P2,550 for the monthly electric bill.
28 Issued a check for P28,400 to pay for salaries.

REQUIRED: (USE MS EXCEL)

1. Record the transactions for the month of April in a journal and post the transactions to the ledger.
2. Journalize the adjusting entry on the following events and in relation to the transactions above.
a. Insurance cost is recognized monthly.
b. Salaries paid to employees form part of the cost of service.
c. The advanced payment of rent applies.
d. The office furniture has a useful life of five years.
e. The desktop computer has useful life of three years.
f. Personal copier has an estimated output in its entire life of 120,000 pages. The machine indicates
3,000 pages used in April.
g. The bank loan is payable in six equal payments plus 8% interest.
h. Salaries accrued as at April 30, P6,560.
i. Supplies on hand at the end of the month amounts to P2,575.

FINANCIAL ACCOUNTING AND REPORTING 2