Please help List and record each transaction for S. Zee Outpatient Clinic under
ID: 2663106 • Letter: P
Question
Please help
List and record each transaction for S. Zee Outpatient Clinic under the accrual basis of accounting at December 31, 20X1. then develop a balance sheet as of December 31, 20X1, and a statement of operations for the year ended December 31, 20X1.
a.The clinic received a $3,000,000 of unrestricted cash contribution from the community. (Hint: this transaction increases the unrestricted net assets account.)
b.The clinic purchased $2,000,000 of equipment. The clinic paid cash for the equipment.
c.The clinic borrowed $1,000,000 from the bank a long-term basis,
d.The clinic purchased $1,500,000 of supplies on credit.
e.The clinic provided $5,500,000 services on credit.
f.In the provision of these services, the clinic used $1,000,000 of supplies.
g.The clinic received $500,000 in advance to care for capitated patients.
h.The clinic incurred $2,000,000 in labor expenses and paid cash for them.
i.The clinic incurred $1,500,000 in general expenses and paid cash for them.
j.The clinic received $4,500,000 form patients and their third parties in payment of outstanding accounts.
k.The clinic met $300,000 of its obligation to capitated patients in Transaction g.
l.The clinic made a $100,000 cash payment on the long-term loan.
m.The clinic also made a cash interest payment of $50,000.
n.A donor made a temporarily restricted donation of $100,000 to be used for operations.
o.The clinic recognized $200,000 in depreciation for the year.
p.The clinic recognized $500,000 of patient accounts would not be received.
Explanation / Answer
Journal Entries a Cash 3,000,000.00 Un restricted Contribution 3,000,000.00 b Equipment 2,000,000.00 Cash 2,000,000.00 c Cash 1,000,000.00 Bank Loan 1,000,000.00 d Supplies 1,500,000.00 Cash 1,500,000.00 e Accounts Receivable 5,500,000.00 Service Revenue 5,500,000.00 f Supplies Expense 1,000,000.00 Supplies 1,000,000.00 g Cash 500,000.00 Unearned Service Revenue 500,000.00 h Labor Expenses 2,000,000.00 Cash 2,000,000.00 i General Expenses 1,500,000.00 Cash 1,500,000.00 j Cash 4,500,000.00 Accounts Receivable 4,500,000.00 k Unearned Service Revenue 300,000.00 Service Revenue 300,000.00 l Bank Loan 100,000.00 Cash 100,000.00 m Interest Expense 50,000.00 Cash 50,000.00 n Cash 100,000.00 Restricted Donation 100,000.00 o Depreciation Expense 200,000.00 Accumulated Depreciation 200,000.00 p Bad Debt Expense 500,000.00 Accounts Receivable 500,000.00 OPERATIONS SUMMARY Service Revenue 5,800,000.00 Less:Expenses Supplies Expense 1,000,000.00 Labor Expenses 2,000,000.00 General Expenses 1,500,000.00 Interest Expense 50,000.00 Depreciation Expense 200,000.00 Bad Debt Expense 500,000.00 5,250,000.00 5,250,000.00 Net Income from Operations 550,000.00 BALANCE SHEET AS ON 31 Dec Assets : Cash 1,950,000.00 Equipment 2,000,000.00 Supplies 500,000.00 Accounts Receivable 500,000.00 Total Assets 4,950,000.00 Liabilities Un restricted Contribution 3,000,000.00 Restricted Contribution 100,000.00 Net Income 550,000.00 Unearned Service Revenue 200,000.00 Bank Loan 900,000.00 Accumulated Depreciation 200,000.00 Total Liabilities 4,950,000.00