| Bluemark Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder. |
| Bluemark's final December 31, 2013 post-closing trial balance appears below. | | |
| Bluemark Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder. | |
| Bluemark's final December 31, 2013 post-closing trial balance appears below. | | |
| January 1, 2014 | | | | |
| Account | | | Debit | Credit | | | | |
| Cash | | | 20,000 | | | | | |
| Accounts Receivable | | 34,500 | | | | | |
| Prepaid Insurance | | 700 | | | | | |
| Supplies | | | 1,000 | | | | | |
| Building | | | 150,000 | | | | | |
| Accumulated Depreciation | | 11,200 | | | | |
| Land | | | 120,000 | | | | | |
| Accounts Payable | | | 7,500 | | | | |
| Unearned Revenue | | | - | | | | |
| Wages Payable | | | - | | | | |
| Notes Payable | | | 30,000 | | | | |
| Capital Stock | | | | 50,000 | | | | |
| Retained Earnings | | | 227,500 | | | | |
| Dividends | | | - | | | | | |
| Income Summary | | | | | | | |
| Service Revenue | | | - | | | | |
| Wages Expense | | - | | | | | |
| Utilities Expense | | - | | | | | |
| Rent Expense | | - | | | | | |
| Interest Expense | | - | | | | | |
| Miscellaneous Expense | - | | | | | |
| Supplies Expense | | - | | | | | |
| Insurance Expense | | - | | | | | |
| Depreciation Expense | | - | | | | | |
| | | 326,200 | 326,200 | | | | |
| | | | | | | | |
| | | | | | | | |
| During January, 2014, Bluemark Health Care entered into the following transactions: | | |
| Trans #/Date | Description | |
| # 1 - Jan 1 | Received $15,000 from Rivers Company as rent for the use of a vacant office in | |
| Bluemark Health Care's building. Rivers paid the rent six months in advance. | | |
| #2 - Jan 1 | Paid $4,200 for an insurance premium on a general business policy. This payment | |
| was debited to Prepaid Insurance. | | | | | |
| #3 - Jan 6 | Purchased supplies of $1,800 on accounts. | | | | | |
| #4 - Jan 9 | Collected $27,500 for services provided to customers on account. | | | |
| #5 - Jan 11 | Paid creditors $3,000 on account. | | | | | | |
| #6 - Jan 18 | The sole shareholder invested an additional $25,000 in the business in exchange for | |
| capital stock. | | | | | | | |
| #7 - Jan 20 | Billed patients $62,000 for services provided on account. | | | | |
| #8 - Jan 25 | Received $12,900 for services provided to customers who paid cash. | | |
| #9 - Jan 30 | Paid cash for expenses as follows: wages, $24,000; utilities, $6,000; rent on medical | |
| equipment, $5,000; interest, $200; and miscellaneous, $2,500. | | | |
| #10 - Jan 30 | Paid dividends of $15,000 to stockholders (Dr. Hancock). | | | | |
| | | | | | | | | |
| January 31, 2014 Bluemark Health Care adjustment data appears below: | | | |
| Adjust A | $800 of the prepaid insurance expired during January. | | | | |
| Adjust B | $1,100 of supplies were on hand on January 31. (hint: check the unadj supplies bal first). | |
| Adjust C | January depreciation on building was $2,000. | | | | | |
| Adjust D | $2,500 of unearned rent revenue was earned. | | | | | |
| Adjust E | Wages owed employees but not paid was $1,700. | | | | |
| Adjust F | Services provided but not billed to patients was $10,000. | | | | |
| Requirements: | | | | | | | | |
| - Prepare a ledger consisting of T-Accounts for all Bluemark accounts. Enter the opening
| |
| balances from the January 1, 2014 trial balance. | | | | |
| | | | | | | | | |
| Prepare journal entries for the 10 transactions in January 2014. | | | |
| | | | | | | | | |
| Post the transaction entries to the T-Accounts and prepare a 1/31/14 unadjusted | |
| trial balance. | | | | | | | |
| | | | | | | | | |
| Prepare the adjusting entries A through F. | | | | | |
| | | | | | | | | |
| Post the adjusting entries to the T-Accounts and prepare an 1/31/14 adjusted trial balance. | |
| | | | | | | | | |
| Prepare an income statement, retained earnings statement, and a balance sheet for | |
| January 2014. | | | | | | | |
| | | | | | | | | |
| Prepare closing entries at January 31, 2014 as follows: | | | | |
| | (1) Close revenue to Income Summary Account | | | |
| | (2) Close expenses to Income Summary Account | | | |
| | (3) Close Income Summary Account to Retained Earnings | | | |
| | (4) Close Dividends to Retained Earnings | | | | |
| | | | | | | | | |
| Prepare a January 31, 2014 post-closing trial balance. | | | | |
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