ASSIGNMENT 04

NAME: DATE:

Dr. Barbi Baldoza, a cosmetic surgeon, opened Batang Bata Clinic specializing in
slimming, facial and skin treatment in Recto Manila. The following are the transactions
for 2018 the first year of operation:

January 1 Barbi invested P250,000 cash, P500,000 medical equipment.

February 28 Bought furniture on account, costing P150,000 from Furniture World.

March 5 Bought for cash, medical supplies worth P125,000

April 7 A summary of botox treatments rendered showed: cash patients,

P215,000; on account customers, P395,000.

May 31 Received P180,000 proceeds from a bank loan payable on January

31, 2019 and paid with it a two-year insurance starting 2019 for the
clinic.

June 30 Paid salaries of nurse and secretary, P120,000

July 17 A summary of liposuction treatments rendered showed: cash

customers, P280,000; on account customers, P245,000 of which
P15,000 were collected.

August 31 Received P100,000 advance payment from a patient facial treatment.

September 20 Barbi took P15,000 worth of medical supplies for personal use.

October 5 Collected 10% of balance owed by the botox-treated customers.

December 29 Paid for rent P110,000 which included the use of power and water
amounting to P 50,000

Additional information: At the end of the period (December 31)

1. The remaining medical supplies unused amounted to P50,000
2. Depreciation of Medical Equipment and Furniture for the period amounted to
10%
3. 5% of receivable is estimated to be uncollectible

Requirement: Using the format below, prepare ADJUSTING ENTRIES, FINANCIAL

STATEMENTS and CLOSING ENTRIES
Adjusting entries:

Date Description/Account Title Debit Credit

Financial Statements

Batang Bata Clinic

Income Statement
For the period ending Dec 31 –

Revenues:

Less Expenses:

Profit
 Batang Bata Clinic
Capital Statement
For the period ending Dec 31 –

Batang Bata Clinic

Balance Sheet
December 31 –

ASSET LIABILITIES

OWNERS’EQUITY
Closing entries:

Date Description/Account Title Debit Credit