Solution Library

Financial Transactions and Effects of Economic Transactions

Question

Assume that a group of physicians provided $500,000 in cash as start-up capital to initiate a community-based primary care clinic, Healthy Neighbor, Inc. in July 2003.

2. The clinic received $300,000 in unrestricted contributions from a community philanthropist

3. Office and medical equipment was purchased for $175,355 in cash.

4. Medical supplies costing $95,500 were purchased on account.

5. Current month’s lease of $3,500, $1,520 in utilities, and $6,500 (of the $10,000) in staff salaries were paid in cash.

6. Healthy Neighbor provided health care services charged to patients’ accounts of $155,650 during July.

7. Reimbursement of $23,425 for patient services received in cash on July 31.

8. $18,645 of medical supplies were used to provide patient care.

9. Equipment depreciated $5,000.

10. Anticipating additional cash outlays for new staff, Healthy Neighbor signed a special promissory note with a bank for $10,500 at zero interest.

 

Required:

i. Using T-accounts translate the following set of financial transactions into accounting entries for the first month of operations for HNI and show end-of-month account balances.

ii. show and explain the effects of economic transactions.

 

Summary: This question belongs to accounting and discusses about transaction accounts and explains the effects of economic transactions.

Answer is in Excel format

 

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.