LA

Activity No. 1

Problem Solving:

On March 1, 1999, Marlon Cabance, a recent medical board topnotcher, started his medical practice. During the month
of March, the following transactions were completed.

Mar 1 Cabance invested P 42,500 personal funds in a new bank account in the name of Marlon Cabance, M.D.
2 Acquired medical equipment costing P 95,000 from Tambilo Medical Equipment Company, paying P 15,000
in cash, and financing the remainder by issuing a P 80, 000.
3 Paid rent for the month of March, P 7,500.
5 Acquired medical supplies from Suiza Medical Supply Company on account, P 15, 250.
7 Received P 18, 450 in cash from patients for medical services rendered this week.
9 Paid Pablo Labs for preparing laboratory work on a patient, P 1, 800.
12 Paid salaries of medical technician and receptionist, P 9, 600.
15 Billed patients P 51, 700 for services rendered.
17 Paid Suiza Medical Supply Company P 3, 750 on account.
20 Paid telephone expense, P 850.
21 Paid miscellaneous expense, P 1, 150.
22 Received P 27, 500 from patients billed on Mar. 15.
23 Acquired additional medical supplies from Suiza Medical Supply Company on account, P 9, 100.
25 Paid salaries, P 11, 200.
26 Billed patients P 40, 150 for services rendered.
27 Paid Suiza Medical Supply Company, P 6, 150.
28 Withdrew P 15, 000 from the medical practice.

The following accounts will be needed: Cash 110, Accounts Receivable 120, Medical Supplies 130, Medical
Equipment 140, Notes Payable 210, Accounts Payable 220, Cabance Capital 310, Cabance Withdrawals 320,
Medical Revenue 410, Salaries Expense 510, Rent Expense 520, Laboratory Expense 530, Telephone Expense
540, Miscellaneous Expense 550

Required:

 Chart of Accounts
 Journal
 Ledger
 Trial Balance
 Statement of Performance
 Statement of Equity
 Statement of Financial Position
 Statement of Cash Flows
 Closing Entries
 Post-Closing Trial Balance