Journal Entries page 1

Date Account Titles and Explanation P.R. Dr. Cr.

2020
1-Oct Cash 110 ₱ 250,000.00
Marasigan, Capital 310 ₱ 250,000.00
Initial investment

1-Oct Medical Building 160 ₱ 1,000,000.00

Land 150 ₱ 250,000.00
Cash 110 ₱ 50,000.00
20% Notes Payable 220 ₱ 1,200,000.00
Acquiring of assets with 20% interest payable

1-Oct Medical Equipment 170 ₱ 420,000.00

Medical Supplies 130 ₱ 39,000.00
Cash 110 ₱ 59,000.00
24% Notes Payable 210 ₱ 400,000.00
Acquiring of medical equipment and supplies

2-Oct Prepaid Insurance 140 ₱ 20,000.00

Cash 110 ₱ 20,000.00
Acquiring of All-in-one insurance

4-Oct Cash 110 ₱ 117,000.00

Medical Revenues 410 ₱ 117,000.00
Received cash from patients

7-Oct Medical Supplies 130 ₱ 17,000.00

Accounts Payable 230 ₱ 17,000.00
Bought medical supplies on account

10-Oct Salaries Expense 510 ₱ 73,000.00

Cash 110 ₱ 73,000.00
Paid salaries of nurses and staffs

12-Oct Cash 110 ₱ 90,000.00

Unearned Research Revenues 260 ₱ 90,000.00
Received cash over the next 3 months

18-Oct Accounts Receivable 120 ₱ 317,000.00

Medical Revenues 410 ₱ 317,000.00
Billed patients for service rendered

21-Oct Repairs Expense 530 ₱ 23,000.00

Cash 110 ₱ 23,000.00
Payment for repairing service
23-Oct Telephone Expense 560 ₱ 3,000.00
Cash 110 ₱ 3,000.00
Paid telephone bill

24-Oct Medical Equipment 170 ₱ 45,000.00

Accounts Payable 230 ₱ 45,000.00
Bought medical equipment on account

25-Oct Cash 110 ₱ 113,000.00

Accounts Receivable 120 ₱ 113,000.00
Collected cash from billed patients

27-Oct Accounts Payable 230 ₱ 13,000.00

Cash 110 ₱ 13,000.00
Paid accounts payable to San Pablo Supply

30-Oct Marasigan, Withdrawals 320 ₱ 200,000.00

Cash 110 ₱ 200,000.00
To record withdrawal of Marasigan

30-Oct Association Dues Expense 550 ₱ 15,000.00

Cash 110 ₱ 15,000.00
Paid dues to Laguna Medical Association

Adjusting Entries page 2

Date Account Titles and Explanation P.R. Dr. Cr.
2020
31-Oct Insurance Expense 520 ₱ 1,666.66
Prepaid Insurance 140 ₱ 1,666.66

31-Oct Supplies Expense 540 ₱ 35,000.00

Medical Supplies 130 ₱ 35,000.00

31-Oct Depreciation expense-Bldg. 570 ₱ 5,000.00

Depreciation expense-Equip. 580 ₱ 9,000.00
Accumulated Depreciation - Medical Building 165 ₱ 5,000.00
Accumulated Depreciation - Medical
Equipment 175 ₱ 9,000.00

31-Oct Unearned Research Revenues 260 ₱ 30,000.00

Research Revenues 420 ₱ 30,000.00

31-Oct Salaries Expense 510 ₱ 51,000.00

Salaries Payable 240 ₱ 51,000.00
31-Oct Interest Expense 590 ₱ 28,000.00
Interest Payable 250 ₱ 28,000.00

Closing Entries
31-Oct Medical Revenues 410 ₱ 434,000.00
Research Revenues 420 ₱ 30,000.00
Income Summary 330 ₱ 464,000.00

31-Oct Income Summary 330 ₱ 243,666.66

Salaries Expense 510 ₱ 124,000.00
Insurance Expense 520 ₱ 1,666.66
Repairs expense 530 ₱ 23,000.00
Supplies Expense 540 ₱ 35,000.00
Association Dues Expense 550 ₱ 15,000.00
Telephone Expense 560 ₱ 3,000.00
Depreciation expense-Bldg. 570 ₱ 5,000.00
Depreciation expense-Equip. 580 ₱ 9,000.00
Interest Expense 590 ₱ 28,000.00

31-Oct Income Summary 330 ₱ 220,333.34

Marasigan, Capital 310 ₱ 220,333.34

31-Oct Marasigan, Capital 310 ₱ 200,000.00

Marasigan, Withdrawals 320 ₱ 200,000.00

Reversing Entries page 3

Date Account Titles and Explanation P.R. Dr. Cr.
2020
1-Nov Salaries Payable 240 ₱ 51,000.00
Salaries Expense 510 ₱ 51,000.00

Interest Payable 250 ₱ 28,000.00

Interest Expense 590 ₱ 28,000.00

Ledger Accounts
Account: Cash Account No. 110
Date Explanation J.R. Dr. Cr. Balance
2020
1-Oct Initial investment J-1 ₱ 250,000.00 ₱ 250,000.00
Initial Payment to medical building and
1-Oct land J-1 ₱ 50,000.00 ₱ 200,000.00
Initial payment to medical equipment
1-Oct and supplies J-1 ₱ 59,000.00 ₱ 141,000.00
2-Oct Acquiring of All-in-one insurance J-1 ₱ 20,000.00 ₱ 121,000.00
4-Oct Received cash from patients J-1 ₱ 117,000.00 ₱ 238,000.00
10-Oct Paid salaries of nurses and staffs J-1 ₱ 73,000.00 ₱ 165,000.00
12-Oct Received cash over the next 3 months J-1 ₱ 90,000.00 ₱ 255,000.00
21-Oct Payment for repairing service J-1 ₱ 23,000.00 ₱ 232,000.00
23-Oct Paid telephone bill J-1 ₱ 3,000.00 ₱ 229,000.00
25-Oct Collected cash from billed patients J-1 ₱ 113,000.00 ₱ 342,000.00
Paid accounts payable to San Pablo
27-Oct Supply J-1 ₱ 13,000.00 ₱ 329,000.00
30-Oct To record withdrawal of Marasigan J-1 ₱ 200,000.00 ₱ 129,000.00
Paid dues to Laguna Medical
30-Oct Association J-1 ₱ 15,000.00 ₱ 114,000.00

Account: Accounts Receivable Account No. 120

Date Explanation J.R. Dr. Cr. Balance
2020
18-Oct Billed patients for service rendered J-1 ₱ 317,000.00 ₱ 317,000.00
25-Oct Collected cash from billed patients J-1 ₱ 113,000.00 ₱ 204,000.00

Account: Medical Supplies Account No. 130

Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of medical supplies with 24%
1-Oct notes payable J-1 ₱ 39,000.00 ₱ 39,000.00
7-Oct Bought medical supplies on account J-1 ₱ 17,000.00 ₱ 56,000.00

Account: Prepaid Insurance Account No. 140

Date Explanation J.R. Dr. Cr. Balance
2020
2-Oct Acquiring of All-in-one insurance J-1 ₱ 20,000.00 ₱ 20,000.00

Account: Land Account No. 150

Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of assets with 20% interest
1-Oct payable J-1 ₱ 250,000.00 ₱ 250,000.00

Account: Medical Building Account No. 160

Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of assets with 20% interest
1-Oct payable J-1 ₱ 1,000,000.00 ₱ 1,000,000.00

Account: Medical Equipment Account No. 170

Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of medical equipment and
1-Oct supplies J-1 ₱ 420,000.00 ₱ 420,000.00
24-Oct Bought medical equipment on account J-1 ₱ 45,000.00 ₱ 465,000.00
 Account: 24% Notes Payable Account No. 210
Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of medical equipment and
1-Oct supplies J-1 ₱ 400,000.00 ₱ 400,000.00

Account: 20% Notes Payable Account No. 220

Date Explanation J.R. Dr. Cr. Balance
2020
Acquiring of assets with 20% interest
1-Oct payable J-1 ₱ 1,200,000.00 ₱ 1,200,000.00

Account: Accounts Payable Account No. 230

Date Explanation J.R. Dr. Cr. Balance
2020
7-Oct Bought medical supplies on account J-1 ₱ 17,000.00 ₱ 17,000.00
24-Oct Bought medical equipment on account J-1 ₱ 45,000.00 ₱ 62,000.00
Paid accounts payable to San Pablo
27-Oct Supply J-1 ₱ 13,000.00 ₱ 49,000.00

Account: Unearned Research Revenues Account No. 260

Date Explanation J.R. Dr. Cr. Balance
2020
12-Oct Received cash over the next 3 months J-1 ₱ 90,000.00 ₱ 90,000.00

Account: Marasigan, Capital Account No. 310

Date Explanation J.R. Dr. Cr. Balance
2020
1-Oct Initial Investment J-1 ₱ 250,000.00 ₱ 250,000.00

Account: Marasigan, Withdrawals Account No. 320

Date Explanation J.R. Dr. Cr. Balance
2020
30-Oct Withdrawal of Marasigan J-1 ₱ 200,000.00 ₱ 200,000.00

Account: Medical Revenues Account No. 410

Date Explanation J.R. Dr. Cr. Balance
2020
4-Oct Received cash from patients J-1 ₱ 117,000.00 ₱ 117,000.00
18-Oct Billed patients for service rendered J-1 ₱ 317,000.00 ₱ 434,000.00

Account: Salaries Expense Account No. 510

Date Explanation J.R. Dr. Cr. Balance
2020
10-Oct Paid salaries of nurses and staffs J-1 ₱ 73,000.00 ₱ 73,000.00

Account: Repairs Expense Account No. 530

Date Explanation J.R. Dr. Cr. Balance
2020
21-Oct Payment for repairing service J-1 ₱ 23,000.00 ₱ 23,000.00

Account: Association Dues Expense Account No. 550

Date Explanation J.R. Dr. Cr. Balance
2020
Paid dues to Laguna Medical
30-Oct Association J-1 ₱ 15,000.00 ₱ 15,000.00

Account: Telephone Expense Account No. 560

Date Explanation J.R. Dr. Cr. Balance
2020
23-Oct Paid telephone bill J-1 ₱ 3,000.00 ₱ 3,000.00

Dr. Nick Marsigan, M.D.

Income Statement
For the Month Ended October 31, 2020
Revenues
Medical Revenues ₱ 434,000.00
Research Revenues ₱ 30,000.00
Total ₱ 464,000.00
Expenses
Salaries Expense ₱ 124,000.00
Insurance Expense ₱ 1,666.66
Repairs expense ₱ 23,000.00
Supplies Expense ₱ 35,000.00
Association Dues Expense ₱ 15,000.00
Telephone Expense ₱ 3,000.00
Depreciation expense-Bldg. ₱ 5,000.00
Depreciation expense-Equip. ₱ 9,000.00
Interest Expense ₱ 28,000.00
Total ₱ 243,666.66
Profit ₱ 220,333.34

Dr. Nick Marsigan, M.D.

Statement of Changes in Equity
For the Month Ended October 31, 2020
Marasigan, Owner's Equity, 10/1/2020 ₱ 250,000.00
Add: Additional Investment by
Marasigan ₱ -
Profit ₱ 220,333.34
Total ₱ 470,333.34
Less: Withdrawals ₱ 200,000.00
Marasigan, Owner's Equity, 10/31/2020 ₱ 270,333.34
 Dr. Nick Marasigan, M.D.
Balance Sheet
October 31, 2020
Assets
Currents Assets
Cash ₱ 114,000.00
Accounts Receivable ₱ 204,000.00
Medical Supplies ₱ 21,000.00
Prepaid Insurance ₱ 18,333.34
Total Current
Assets ₱ 357,333.34
Non-Current
Assets
Land ₱ 250,000.00
Medical Building ₱ 1,000,000.00
Less: Acc. Depreciation - Medical Bldg. ₱ 5,000.00 ₱ 995,000.00
Medical Equipment ₱ 465,000.00
Less: Acc. Depreciation - Medical Equip. ₱ 9,000.00 ₱ 456,000.00
Total Non-Current Assets ₱ 1,701,000.00
Total Assets ₱ 2,058,333.34
Liabilities
Currents
Liabilities
24% Notes Payable ₱ 400,000.00
Accounts Payable ₱ 49,000.00
Salaries Payable ₱ 51,000.00
Interest Payable ₱ 28,000.00
Unearned Research Revenues ₱ 60,000.00
Total Current Liabilities ₱ 588,000.00
Non-Current Liabilities
20% Notes Payable ₱ 1,200,000.00
Total Non-Current Liabilities ₱ 1,200,000.00
Total Liabilities ₱ 1,788,000.00
Owner's Equity
Marasigan, Capital ₱ 270,333.34
Total Liabilities and Owner's Equity ₱ 2,058,333.34

Dr. Nick Marasigan, M.D.

Post-Closing Trial Balance
October 31, 2020
Debit Credit
Cash ₱ 114,000.00
Accounts Receivable ₱ 204,000.00
Medical Supplies ₱ 21,000.00
Prepaid Insurance ₱ 18,333.34
Land ₱ 250,000.00
 Medical Building ₱ 1,000,000.00
Accumulated Depreciation - Medical Building ₱ 5,000.00
Medical Equipment ₱ 465,000.00
Accumulated Depreciation - Medical
Equipment ₱ 9,000.00
24% Notes Payable ₱ 400,000.00
20% Notes Payable ₱ 1,200,000.00
Accounts Payable ₱ 49,000.00
Salaries Payable ₱ 51,000.00
Interest Payable ₱ 28,000.00
Unearned Research Revenues ₱ 60,000.00
Marasigan, Capital ₱ 270,333.34
₱ 2,072,333.34 ₱ 2,072,333.34

Adjusting Entries Ledger Form

Account: Medical Supplies Account No. 130
Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct Supplies that has been used J-2 ₱ 35,000.00 ₱ 35,000.00

Account: Prepaid Insurance Account No. 140

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct One month rent has been expired J-2 ₱ 1,666.66 ₱ 1,666.66

Account: Accumulated Depreciation-

Medical Building Account No. 165
Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct A portion of medical building depreciate J-2 ₱ 5,000.00 ₱ 5,000.00

Account: Accumulated Depreciation-

Medical Equip. Account No. 175
Date Explanation J.R. Dr. Cr. Balance
2020
A portion of medical equipment
31-Oct depreciate J-2 ₱ 9,000.00 ₱ 9,000.00

Account: Salaries Payable Account No. 240

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct Accrued salaries to its staffs J-2 ₱ 51,000.00 ₱ 51,000.00

Account: Interest Payable Account No. 250

Date Explanation J.R. Dr. Cr. Balance
2020
 Generate interest payable due to notes
31-Oct payable J-2 ₱ 28,000.00 ₱ 28,000.00

Account: Unearned Research Revenues Account No. 260

Date Explanation J.R. Dr. Cr. Balance
2020
Portion of unearned revenue has been
31-Oct earned J-2 ₱ 30,000.00 ₱ 30,000.00

Account: Research Revenues Account No. 420

Date Explanation J.R. Dr. Cr. Balance
2020
Portion of unearned revenue has been
31-Oct earned J-2 ₱ 30,000.00 ₱ 30,000.00

Account: Salaries Expense Account No. 510

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct Accrued salaries occurred J-2 ₱ 51,000.00 ₱ 51,000.00

Account: Insurance Expense Account No. 520

Date Explanation J.R. Dr. Cr. Balance
2020
One month of one year insurance has
31-Oct been expired J-2 ₱ 1,666.66 ₱ 1,666.66

Account: Supplies Expense Account No. 540

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct The amount of supplies used J-2 ₱ 35,000.00 ₱ 35,000.00

Account: Depreciation Expense-Bldg. Account No. 570

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct The building depreciate J-2 ₱ 5,000.00 ₱ 5,000.00

Account: Depreciation Expense-Equip. Account No. 580

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct The medical equipment depreciate J-2 ₱ 9,000.00 ₱ 9,000.00

Account: Interest Expense Account No. 590

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct There’s a charge for interest expense J-2 ₱ 28,000.00 ₱ 28,000.00
 Closing Entries Ledger Form
Account: Marasigan, Capital Account No. 310
Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close Income summary account J-2 ₱ 220,333.34 ₱ 220,333.34
To close withdrawal account J-2 ₱ 200,000.00 ₱ 20,333.34

Account: Marasigan, Withdrawals Account No. 320

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the withdrawal account J-2 ₱ 200,000.00 ₱ 200,000.00

Account: Income Summary Account No. 330

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the revenues accounts J-2 ₱ 464,000.00 ₱ 464,000.00
To close the expense accounts J-2 ₱ 243,666.66 ₱ 220,333.34
To close the Income summary J-2 ₱ 220,333.34 ₱ -

Account: Medical Revenues Account No. 410

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct This is to close Medical Revenues J-2 ₱ 434,000.00 ₱ 434,000.00

Account: Research Revenues Account No. 420

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close Research Revenues J-2 ₱ 30,000.00 ₱ 30,000.00

Account: Salaries Expense Account No. 510

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the salaries expense J-2 ₱ 124,000.00 ₱ 124,000.00

Account: Insurance Expense Account No. 520

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the interest expense J-2 ₱ 1,666.66 ₱ 1,666.66

Account: Repairs Expense Account No. 530

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the repair expense J-2 ₱ 23,000.00 ₱ 23,000.00
 Account: Supplies Expense Account No. 540
Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the supplies expense J-2 ₱ 35,000.00 ₱ 35,000.00

Account: Association Dues Expense Account No. 550

Date Explanation J.R. Dr. Cr. Balance
2020
To close the association dues expense
31-Oct account J-2 ₱ 15,000.00 ₱ 15,000.00

Account: Telephone Expense Account No. 560

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close the telephone expense account J-2 ₱ 3,000.00 ₱ 3,000.00

Account: Depreciation Expense-Bldg. Account No. 570

Date Explanation J.R. Dr. Cr. Balance
2020
To close depreciation account of
31-Oct building J-2 ₱ 5,000.00 ₱ 5,000.00

Account: Depreciation Expense-Equip. Account No. 580

Date Explanation J.R. Dr. Cr. Balance
2020
To close depreciation account of
31-Oct equipment J-2 ₱ 9,000.00 ₱ 9,000.00

Account: Interest Expense Account No. 590

Date Explanation J.R. Dr. Cr. Balance
2020
31-Oct To close interest expense account J-2 ₱ 28,000.00 ₱ 28,000.00

Reversing Entries Ledger Form

Account: Salaries Payable Account No. 240
Date Explanation J.R. Dr. Cr. Balance
2020
1-Nov To pay the employees J-3 ₱ 51,000.00 ₱ 51,000.00

Account: Interest Payable Account No. 250

Date Explanation J.R. Dr. Cr. Balance
2020
To reverse the entries in interest
1-Nov payable account J-3 ₱ 28,000.00 ₱ 28,000.00
 Account: Salaries Expense Account No. 510
Date Explanation J.R. Dr. Cr. Balance
2020
1-Nov To reverse the entries J-3 ₱ 51,000.00 ₱ 51,000.00

Account: Interest Expense Account No. 590

Date Explanation J.R. Dr. Cr. Balance
2020
1-Nov To reverse the interest expense J-3 ₱ 28,000.00 ₱ 28,000.00