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HOMEWORK #3 Due October 1st, 5:00 pm

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Dr. McMuffin has a medical clinic formed as a corporation that provides specialty care services to patients. The balances in the accounts as of January 1, 2021 are as follows:

Cash	70,000	Notes Payable	86,000
Accounts Receivable	47,000	Contributed Capital	125,000
Office Supplies	28,000	Retained Earnings	106,000
Building	95,000	Patient Service Revenue	0
Land	60,000	Income Tax Expense	0
Office Fixtures and Equipment	22,000	Compensation Expense	0
Medical Instruments	20,000	Insurance Expense	0
Accounts Payable	25,000	Utilities Expense	0

Below are the business transactions for January for Dr. McMuffins clinic:

JANUARY

1 Purchased land for 20,000 in cash.

2 Received $70,000 of cash from an investor in exchange for shares of stock in the clinic.

5 Billed clients $80,000 for services rendered. Of this amount, ($65,000 was received in cash, and the remaining balance was billed on account (due in 30 days).

6 Purchased Office Fixtures and Equipment for $35,000. The clinic paid $25,000 in cash and financed the remaining balance with debt by signing a note promising to pay in three years. Ignore interest.

8 Received $20,000 from customers on previously billed medical services.

10 Purchased medical instruments on account expected to last a few months for $4,000.

14 Purchased office supplies for $20,000 on account.

20 Received a $10,000 invoice for insurance coverage in January. The entire amount is due to be paid on February 26. You can consider this an Account Payable.

26 Paid $300 in income taxes for taxes incurred during January.

27 Paid suppliers $10,000 included in accounts payable.

28 Paid employees $15,000 in salaries for work done during the month of January.

31 Paid Light Co. $2,500 for utilities used in the clinic during the month of January.

Submit all your answers in one Excel document with 6 different worksheets (one worksheet for each of the 6 below parts).

1. Copy and paste the above table with the account balances into an Excel spreadsheet. This will be your first worksheet titled Question #
2. Prepare journal entries for each transaction (list the date, accounts and amounts debited and credited in good form). Do not worry about making adjusting journal entries.
3. Create a T- account for each account used with the beginning balance provided in your answer to Question #1 (use Excel to refer to the proper cells in Question #1). Post each transaction from Question 2 to the appropriate T account and determine the ending balance as of January 31.
4. Prepare a trial balance dated January 31, 2021 (see page 128 in textbook). By referring to cells in your T-accounts bring over the balances from your T-accounts to the trial balance. Use the Sum function in Excel to add up your debit and credit columns.
5. Copying the appropriate amounts from the trial balance, prepare a classified income statement for the month ended January 31, 2021 (see page 129 in textbook). You can ignore the fact that you have not made any adjusting journal entries.
6. Copying the appropriate amounts from the trial balance, prepare a balance sheet as of January 31, 2021 (see page 69 of the textbook). Use the Sum function in Excel for your totals and a formula to calculate ending retained earnings. Remember: Ending Retained Earnings = Beginning Retained Earnings + Net Income Dividends. McMuffin did not have any dividend activity during the month of January.

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