The trial balance of A-Health Medical Clinic as of December 1, 2022, contains the following balances:

Cash ₱ 342,000
Notes Receivable 300,000
Accounts Receivable 186,000
Office Supplies 120,000
Prepaid Insurance 108,000
Building 1,500,000
Medical Equipment 1,450,000
Service Vehicle 480,000
Office Equipment 156,000
Furniture 75,000
Notes payable - ₱ 250,000
Accounts Payable - 423,750
Unearned rent income - 72,000
Hilado, Capital - 1,950,000
Hilado, Drawing 160,000
Professional Income - 9,795,000
Referral Income 255,750
Salaries Expense 5,458,000
Electricity Expense 288,750
Water Expense 90,000
Telephone Expense 84,150
Advertising Expense 216,000
Permits and Licenses Expense 79,750
Medical Supplies Expense 1,050,000
Fuel and Oil Expense 375,000
Taxes Expense 167,850
Repairs Expense 60,000
Total ₱ 12,746,500 ₱ 12,746,500
The following transactions occurred during the month of December 2022:

1 – Cash receipts for consultations and in-patient collections, ₱ 185,000.

2 – Paid 25% of the outstanding accounts payable.
3 – Granted a ₱ 500,000 loan by LandBank payable in equal installments for 5 years at 5% interest per annum.
4 – Purchased medical supplies issuing a ₱ 150,000, 30-day promissory note.
5 – Received cash for referrals made, ₱ 15,000.
6 – Collected 30% of the outstanding notes receivable.
7 – Paid salaries for the week, ₱ 75,500.
8 – Paid for fuel and oil of service vehicle, ₱ 17,500.
9 – Hilado withdrew ₱ 100,000 for personal use.
10 – Purchased office supplies on account, ₱ 8,000.
11 – Paid for the office supplies purchased on account on December 10.
12 – Rendered medical services to a special patient, accepting a ₱ 60,000 60-day promissory note with a 2% interest
per annum.
13 – Paid salaries for the week, ₱ 75,525.
14 – Paid for fuel and oil of service vehicle, ₱ 15,500.
15 – Billed a patient ₱ 85,500 for medical services rendered.
17 – Paid for minor repairs on the medical equipment, ₱ 15,000.
18 – Collected in full the account of the patient billed on December 15.
19 – Attended to multiple patients with a total bill of ₱ 225,000 collecting 40% in cash, and the balance on account.
20 – Paid salaries for the week, ₱ 75,650.
21 – Received ₱ 24,000 from the tenant in payment of the month’s rent for a corner space. The tenant recently
rented the space for which he paid a deposit for 2 months and a 1-month advance payment.
22 – Rendered medical services on account, ₱ 125,000.
26 – Purchased medical supplies for cash, ₱ 75,400.
27 – Paid salaries for the week, ₱ 75,500.
28 – Paid the monthly bills for electricity, ₱ 24,750, water, ₱ 6,700, and telephone, ₱ 6,500.
29 – Paid taxes, ₱ 12,650.
29 – Paid the December 4 promissory note in full.
30 – Collected in full the patients’ account from the December 19 transaction.
31 – Paid for the renewal of permits and licenses, ₱ 22,500.
Additional Information:

1. Salaries are paid every Friday for a 5-day work week. Assume that December 31 was a Thursday and the
payroll amount for the week was ₱ 75,500.
2. Office supplies on hand on December 31, ₱ 15,000.
3. The advertising contract was paid for 1 year starting April 1, 2022.
4. Medical supplies on hand on December 31, ₱ 75,780.
5. The insurance was paid for 1 year starting August 1, 2022.
6. Of the unearned rent income, 1/3 was already earned.
7. The fixed assets were acquired on January 1, 2022, except for the building which was completed on March
31, 2022. Depreciation is computed using the straight-line method. Details for the non-cash assets are as
follows:
Scrap Value Estimated Service Life
a. Building ₱200,000 20 years
b. Medical Equipment ₱150,000 10 years
c. Service Vehicle ₱ 30,000 5 years
d. Equipment ₱ 16,000 5 years
e. Furniture ₱ 5,000 5 years
8. 2% of the outstanding accounts receivable is estimated to be uncollectible.
9. Interest is to be accrued for the LandBank loan on December 31, 2022.
10. Accrued interest on the patient’s promissory notes is to be recognized on December 31, 2022.