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MGMT 101a: Principles of Accounting I
Direction: Analyze and answer the following problems provided below.
Problem 1. The Family Clinic is owned and operated by Dr. Galing. Dr. Galing
has the following assets and liabilities when he started the clinic on July 1:
Cash P 54,200 , Medical Supplies P 3,850, Medical Equipment P 75,000,
Accounts Payable on Medical Equipment P 25,000. His business transactions
during July are the following
a. Received cash from patient for services performed, P 40,000
b. Paid amounts owed for medical equipment, P 15,000
c. Paid Office Rent for the month, P 15,000
d. Charged patients for services performed, P 8,025
e. Received cash from account patients P 10,000 for Medical Services of
f. Purchased medical supplies on account, P 12,450
a. Received cash from patients for amounts owing, P 13,000
h. Paid the following: Salaries expense P 850, Repair Service Expense, P
250, Utilities Expense P 400
i Cost of medical supplies used was P 3,980
i. Dr. Galing withdrew P 10,000 in cash from the clinic for personal use
a. Determine the amount of owner’s equity (capital) as of July 1 of the
b. Using the Happy Tour format, copy the starting balances, analyze the
above transactions and determine the balances. Prove total amounts
using the accounting equation.
C. Prepare a statement of Income for July and a statement of financial
position as of July 31
d. Get the totals and prove the accounting equation.
e. How much is the cash?