Comprehensive Problem

Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a
medical practice in San Pablo, Laguna. During October 2023, 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. Nick 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 6
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 400,000 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 the 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:

1. Establish the following accounts and account numbers in a ledger.

Account No. Account No.

Cash 110 Marasigan, Capital 310
Accounts Receivable 120 Marasigan, Withdrawals 320
Medical Supplies 130 Income Summary 330
Prepaid Insurance 140 Medical Revenues 410
Land 150 Research Revenues 420
Medical Building 160 Salaries Expense 510
Accumulated Depreciation- Insurance Expense 520
Medical Building 165 Repairs Expense 530
Medical Equipment 170 Supplies Expense 540
Accumulated Depreciation- Association Dues Expense 550
Medical Equipment 175 Telephone Expense 560
24% Notes Payable 210 Depreciation Expense-Bldg. 570
20% Notes Payable 220 Depreciation Expense-Equipt. 580
Accounts Payable 230 Interest Expense 590
Salaries Payable 240
Interest Payable 250
Unearned Research Revenues 260
 2. Record the transactions for the month of October in a journal (page 1) and post the entries to
the ledger. Use balance sheet accounts to record those transactions that will later require
adjustments.

EXERCISES BEGIN HERE (NOVEMBER 17, 2023)

We have already discussed the correct accounting journal entries last meeting. Now, you have to
prepare the first 6-columns of the worksheet using the attached excel file by following the below
requirements:

3. Prepare the unadjusted trial balance in the worksheet (first 2-columns in the excel file).

4. Record the following adjustments on the worksheet (second 2-columns in the excel file.
a. Insurance for one month has expired.
b. Medical supplies on hand at month-end amounted to P21,000.
c. Depreciation on 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. Interest on the 20% and 24% notes are P20,000 and P8,000, respectively.

5. Prepare the adjusted trial balance (third 2-columns in the excel file).

end