Name: Josh Adrian Greg S.

Mante
Block: 1BSTMACCO 001

Exercise 2-4

A medical practitioner Dr. Nikolai opened his clinic with the following initial transactions:
1. Dr. Niko opened a medical clinic by investing P300,000 pesos.
2. Issued a promissory note for the P100,000 he borrowed from Banco De Uno.
3. Purchased a medical bed and its accessories worth ₱100,000
4. Bought on account a table and cabinet worth ₱70,000.
5. Purchased medical supplies in the amount of ₱25,000 cash.
6. Withdrew ₱20,000 for personal use
7. Purchased chairs on account for ₱15,000.
8. Paid 50% of the account to A co.
9. Bought from SM Furniture cabinet shelves worth of ₱20,000. Paid ₱5,000 cash and the
balance on account.
10. Received P75,000 from the group of patients as medical fees.
11. Paid power and water bills for the month, P8,000.
12. Paid medical assistant salary, P20,000.
13. Charged the patients for attending the medical care, P50,000.
14. Paid the balance in full to SM Furniture.
15. Collected 70% of medical fees charged to patients in no.13.
16. Paid communication bills, P3,500.
17. Paid P6,000 to Petron Station for the gasoline of Dr. Nikolai’s service vehicle.
18. Settled a partial payment of P70,000 to Banco De Uno (refer to item no. 2)
19. Purchased additional medical equipment, P50,000. Terms: Paid P30,000 and the
balance after 30 days.
20. Returned defective medical supplies purchased in no. 5, worth P5,000.
21. By taking inventory at the end of the period, medical supplies consumed amounted to
P18,000.

1
Required:
1) Analyze and record the transaction using the given tabulation below:

ASSETS LIABILITIES CAPITAL

# CASH ACC REC. SUPP. FURNITURE EQUIPMENT ACCOUNTS MORTGAGE NIKOLAI, NOTATIONS
& FIXTURES PAYABLE PAYABLE CAPITAL
1 300,000 300,000 Initial
Investment
2 100,000 100,000
3 (100,000) 100,000
4 70,000 70,000
5 (25.000) 25,000
6 (20,000) (20,000) Nikolai
Withdrawal
7 15,000 15,000
8 (35,000) (35,000)
9 (5,000) 20,000 15,000
10 75,000 75,000 Service
Revenues
11 (8,000) (8,000) Utility
Expenses
12 (20,000) (20,000) Salary
Expenses
13 50,000 50,000 Service
Revenues
14 (15,000) (15,000)
15 35,000 (35,000)
16 (3,500) (3,500) Utility
expenses
17 (6,000) (6,000) Gasoline
Expenses
18 (70,000) (70,000)
19 (30,000) 50,000 20,000
20 5,000 (5,000)
21 (18,000) (18,000) Supplies
Expenses
Balance: 177,500 15,000 2,000 205,000 50,000 70.000 30,000 349,500
Total: 449,500 449,500

2) Prepare the following financial reports for the month of January 2020:
a) Income Statement
b) Statement of Owner’s Equity
c) Statement of Financial Position
d) Statement of Cash Flows

2
 Dr, Nikolai Medical Clinic
Statement of Income and Expenses
For the Month Ended January 31, 2020

Service Revenue 125,000

Less: Operating Expenses
Salaries 20,000
Supplies 18,000
Gasoline 6,000
Utilities 3,500

Total Operating Expenses 47,500

Net Income ₱77,500

Dr, Nikolai Medical Clinic

Statement of Owner’s Equity
For the Month Ended January 31, 2020

Dr. Nikolai Capital, January 1. 2020 300,000

Add: Net Income 77,500
Total 377,500
Less: Withdrawals 20,000
Dr. Nikolai Capital, January 31, 2020 ₱357,500

Dr, Nikolai Medical Clinic

Statement of Cash Financial Position
For the Month Ended January 31, 2020

Assets Liabilities and Capital

Cash 177,500 Accounts Payable 70.000
Accounts Receivable 15,000 Mortgage Payable 30,000
Supplies 2,000 Dr. Nikolai Capital 349,500
Furniture and Fixtures 205,000
Equipment 50,000
Total Assets ₱494,500 Total Liabilities and Capital ₱494,500

Dr, Nikolai Medical Clinic

3
 Statement of Cash Flows
For the Month Ended January 31, 2020

Cash Flows from Operations

Cash Flows from Operations:
Service Revenues 75,000
Collection of Receivables 35,000
Purchased of Supplies (20,000)
Payments of Expenses
Utility (power and water 8,000
bills)
Utility (communication 3,500
bills)
Salary 20,000
Gasoline 6,000
Supplies 18,000 (55,500) 34,500

Cash Flows from Investment

Activities
Purchased of Furniture and
(105,000)
Fixture
Purchased of Equipment (30,000) (135,000)

Cash Flow from Financing

Activities
Investment of the Owner 300,000
Withdrawals of the Owner (20,000) 280,000

Cash Balance, January 31,

₱179,500
2020