Question ASSIGNMENT 04 NAME: DATE: Dr. Barbi Baldoza, a cosmetic surgeon, opened Batang Bata Clinic specializing in slimming, facial and skin treatment in Recto Manila. The following are the transactions for 2018 the first year of operation: January 1 Barbi invested P250,000 cash, P500,000 medical equipment. February 28 Bought furniture on account, costing P150,000 from Furniture World. March 5 Bought for cash, medical supplies worth P125,000 April 7 A summary of botox treatments rendered showed: cash patients, P215,000; on account customers, P395,000. May 31 Received P180,000 proceeds from a bank loan payable on January 31, 2019 and paid with it a two-year insurance starting 2019 for the clinic. June 30 Paid salaries of nurse and secretary, P120,000 July 17 A summary of liposuction treatments rendered showed: cash customers, P280,000; on account customers, P245,000 of which P15,000 were collected. August 31 Received P100,000 advance payment from a patient facial treatment. September 20 Barbi took P15,000 worth of medical supplies for personal use. October 5 Collected 10% of balance owed by the botox-treated customers. December 29 Paid for rent P110,000 which included the use of power and water amounting to P 50,000 Additional information: At the end of the period (December 31) 1. The remaining medical supplies unused amounted to P50,000 2. Depreciation of Medical Equipment and Furniture for the period amounted to 10% 3. 5% of receivable is estimated to be uncollectible Requirement: Using the format below, prepare ADJUSTING ENTRIES, FINANCIAL STATEMENTS and CLOSING ENTRIES Adjusting entries: Date Description/Account Title Debit Credit Financial Statements Batang Bata Clinic Income Statement For the period ending Dec 31 - Revenues: Less Expenses: Profit Batang Bata Clinic Capital Statement For the period ending Dec 31 - Batang Bata Clinic Balance Sheet December 31 - ASSET LIABILITIES OWNERS'EQUITY Closing entries: Date Description/Account Title Debit Credit

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Transcribed Image Text: ASSIGNMENT 04 NAME: DATE: Dr. Barbi Baldoza, a cosmetic surgeon, opened Batang Bata Clinic specializing in slimming, facial and skin treatment in Recto Manila. The following are the transactions for 2018 the first year of operation: January 1 Barbi invested P250,000 cash, P500,000 medical equipment. February 28 Bought furniture on account, costing P150,000 from Furniture World. March 5 Bought for cash, medical supplies worth P125,000 April 7 A summary of botox treatments rendered showed: cash patients, P215,000; on account customers, P395,000. May 31 Received P180,000 proceeds from a bank loan payable on January 31, 2019 and paid with it a two-year insurance starting 2019 for the clinic. June 30 Paid salaries of nurse and secretary, P120,000 July 17 A summary of liposuction treatments rendered showed: cash customers, P280,000; on account customers, P245,000 of which P15,000 were collected. August 31 Received P100,000 advance payment from a patient facial treatment. September 20 Barbi took P15,000 worth of medical supplies for personal use. October 5 Collected 10% of balance owed by the botox-treated customers. December 29 Paid for rent P110,000 which included the use of power and water amounting to P 50,000 Additional information: At the end of the period (December 31) 1. The remaining medical supplies unused amounted to P50,000 2. Depreciation of Medical Equipment and Furniture for the period amounted to 10% 3. 5% of receivable is estimated to be uncollectible Requirement: Using the format below, prepare ADJUSTING ENTRIES, FINANCIAL STATEMENTS and CLOSING ENTRIES Adjusting entries: Date Description/Account Title Debit Credit Financial Statements Batang Bata Clinic Income Statement For the period ending Dec 31 - Revenues: Less Expenses: Profit Batang Bata Clinic Capital Statement For the period ending Dec 31 - Batang Bata Clinic Balance Sheet December 31 - ASSET LIABILITIES OWNERS'EQUITY Closing entries: Date Description/Account Title Debit Credit

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Solution:- Adjustment Entries:- Date Account Title Debit Credit 31-Dec Entry to Adjust Medical Supplies Expense:-       Medical Supplies Expense   60,000.00     Medical Supplies     60,000.00 31-Dec Entry to record Depreciation on Medical Equipment and Furniture:-       Depreciation on Medical Equipment & Furniture   65,000.00     Accumulated Depreciation on Medical Equipment & Furniture     65,000.00 31-Dec Entry to Create Provision on Debtors:-       Bad Debt Expense    29,275.00     Provision for Bad Debt      29,275.00   Income Statement:- Particulars Amount (P) Amount (P) Revenues:-     Botox Treatment   610,000.00   Liposuction Treatment   525,000.00   Total Revenue     1,135,000.00 Expenses:-     Medical Supplies Expense     60,000.00   Depreciation on Medical Equipment & Furniture      65,000.00   Bad Debt Expense       29,275.00   Insurance Expense      52,500.00   Salary   120,000.00   Rent (including Power and Water)    110,000.00   Total Expenses         436,775.00 Profit       698,225.00   Capital Account:- Particulars Capital Retained Earnings Total Opening Balance                       -                                     -                            ... See the full answer