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Assets Owner's Equity Expenses

Sana Oil Medical Clinic is a sole proprietorship owned by Olive Oily, a medical doctor. The clinic provides medical and consulting services. During the month of December in its first year of operations, the clinic engaged in various business transactions including collecting fees from patients, paying expenses, purchasing equipment and supplies, and withdrawing capital. The document provides a chart of accounts and details of each transaction during the month to record the financial activities of the clinic.

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Mharva Mae Ilagan Liwanag
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385 views2 pages

Assets Owner's Equity Expenses

Sana Oil Medical Clinic is a sole proprietorship owned by Olive Oily, a medical doctor. The clinic provides medical and consulting services. During the month of December in its first year of operations, the clinic engaged in various business transactions including collecting fees from patients, paying expenses, purchasing equipment and supplies, and withdrawing capital. The document provides a chart of accounts and details of each transaction during the month to record the financial activities of the clinic.

Uploaded by

Mharva Mae Ilagan Liwanag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Sana Oil Medical Clinic is owned and managed by Olive Oily a Medical Doctor. It was organized as a sole proprietorship.

The
clinic provides medical and consulting services to clients as a revenue source. It began operations on December 1 of this
year. The following chart of accounts should be used:
Assets Owner’s Equity Expenses
101 Cash 301 Oily, Capital 501 Advertising expense
102 Accounts receivable 302 Oily, Drawings 502 Insurance expense
103 Medical supplies 303 Income summary 503 Maintenance expense
104 Prepaid insurance 504 Miscellaneous expense
105 Furniture and equipment Revenues 505 Rent expense
106 Medical equipment 401 Medical service fees 506 Salaries expense
402 Consulting fees 507 Supplies expense
Liabilities 508 Tax expense
201 Accounts payable 509 Utilities expense
202 Accrued telephone expense 510 Interest expense
203 Loans payable

The following are the business transactions during the month of December:
Dec 1 Olive Oily invested 250,000 to open Sana Oil Medical Clinic
1 Received 100,000 granted by Metro bank as a loan
1 Paid Manila Medical Equipment 200,000 for medical equipment received today
2 Paid 1,500 to the city treasurer for tax and permit to operate a medical clinic
2 Bought for cash furniture and computer equipment worth 50,000
3 Purchase on account medical supplies worth 8,600
3 Paid 1,200 for a two week’s advertisement in a local paper
4 Standard Insurance was paid 3,600 for one-year fire insurance effective December 1
4 The building owner collected 4,000 as rental for December
5 Collected from various clients for consultation services, 5,600
6 Collected from various clients for medical services rendered, 12,500
6 Billed three clients for medical services rendered, 4,500
8 Paid partial on medical supplies on December 3, 4,000
8 Paid December subscriptions of medical magazines (miscellaneous expense), 500
9 Billed two clients for medical services rendered, 3,500
10 Collected partial from clients billed on December 6, 2,000
11 Received 3,600 from various clients for consultation services
12 Bought medical supplies on credit worth, 4,400
13 Received 6,200 from various clients for medical services
13 Paid salary of clinic assistants, 5,200
15 Paid 1,200 for a two week’s advertisement in a local paper
16 A janitor was paid 1,000 for cleaning and maintenance
17 Collected in full the billing made on December 6
18 Olive Oily withdrew 2,000 worth of medical supplies for personal use
19 Received 7,500 from various clients for medical services
20 Received 4,600 from various clients for consultation services
22 Collected in full the billings made on December 9
23 Paid water bill for the month of December, 750
24 Paid telephone bill for the month of December, 1,200
26 Received 3,500 from various clients for consultation services
26 Billed two clients for medical services rendered, 4,300
27 Paid salary of clinic assistants, 5,200
29 Interest on bank loan for December was paid, 1,500
30 Paid the janitor 1,000 for cleaning and maintenance
31 Collected from various clients for consultation services, 4,600
Additional Information:
1. The equipment bought for P200,000 has a salvage value of 5,000 and has an expected life of 20 years.
2. Medical Supplies at the end of the year is valued at P10,000.

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