Dr. Nick Marasigan, M.D.

COMPANY OPERATIONS
Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a medical practice in
San Pablo, Laguna.
REQUIREMENTS
As the accountant for Dr. Nick Marasigan, M.D., you must
1. Open the following general ledger accounts, using the account numbers shown:

Dr. Nick Marasigan, M.D.

CHART OF ACCOUNTS
Account
Number Account Title
110 Cash
120 Accounts Receivable
130 Medical Supplies
140 Prepaid Insurance
150 Land
160 Medical Building
165 Accumulated Depreciation – Medical Building
170 Medical Equipment
175 Accumulated Depreciation – Medical Equipment
210 24% Notes Payable
220 20% Notes Payable
230 Accounts Payable
240 Salaries Payable
250 Interest Payable
260 Unearned Research Revenues
310 Marasigan, Capital
320 Marasigan, Withdrawals
330 Income Summary
410 Medical Revenues
420 Research Revenues
510 Salaries Expense
520 Insurance Expense
530 Repairs Expense
540 Supplies Expense
550 Association Dues Expense
560 Telephone Expense
570 Depreciation Expense – Medical Building
580 Depreciation Expense – Medical Equipment
590 Interest Expense

2. Record the transactions for the month of October and post the entries to the ledger.
3. Prepare a trial balance.
4. Prepare the adjustments in a worksheet and complete the worksheet:
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 a statement of comprehensive income, a statement of changes in equity and statement of financial position.
6. Journalize and post adjusting and closing entries.
7. Prepare the closing entries and prepare a post-closing trial balance.
 Dr. Nick Marasigan, M.D.
Transactions
During October 2016, the first month of operations, the following transactions occurred:
Dr. Marasigan transferred P250,000 from his personal checking account to a bank account, Dr. Nick
Oct. 1 Marasigan, M.D.
A medical building, 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 a medical equipment costing P420,000 and medical supplies amounting to P39,000 by paying
1 P59,000 cash and issuing 24% note payable, maturing in 6 months, for the P400,000 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.
Received P90,000 from the Laguna Experimental Drug Center for research to be conducted by Dr.
12 Marasigan over the next 3 months.
18 Billed patients P317,000 for patient 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 Association dues to Laguna Medical Association