Healthway Care Clinic

Unadjusted Trial Balance Adjustments

Debit Credit Debit Credit
Cash 191,100
C Accounts Receivable 27,000 7,000
Notes Receivable 60,000
B Medical Supplies 39,000 27,000
Furniture and Fixtures 65,000
Medical Equipment 290,000
Accounts Payable 5,100
G Unearned Medical Fees and Revenue 17,000 10,000
Dr. Angelo, Capital 175,500
Dr. Angelo, Personal 6,500
G Medical Fees Revenue 659,000 10,000
Rent Expense 21,500
Salaries Expense 72,300 1,500
Utilities Expense 84,200
856,600 856,600

A Interest Receivable 350

A Interest Income 350
B Medical Supplies Expense 27,000
C Bad Debts Expense 7,000
D Depreciation Expense - F&F 6,833
D Accum. Depn. - F&F 6,833
E Depreciation Expense - ME 33,333
E Accum. Depn. - ME 33,333
F Salaries Payable 1,500
86,017 86,017
Net Income (Dr.)/ Net Loss (Cr.)

Balance Sheet Accounts

Income Statement Accounts

A Interest Receivable
Interest Income
350

B Medical Supplies Expense

Medical Supplies
 C Bad Debts Expense
Accounts Receivable

D Depreciation Expense
Accum. Depn. - F&F
Annual Depn.
Jan. 1 (12mos.) 35,000 6,000 6,000
Oct. 31 (2mos) 30,000 5,000 833
65,000 6,833

E Depreciation Expense
Accum. Depn. - Medical Equipment
40,000 33,333.33

F Salaries Expense
Salaries Payable

G Unearned Medical Fees Revenue

Medical Fees Revenue
Healthway Care Clinic
Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit
191,100 191,100
20,000 20,000
60,000 60,000
12,000 12,000
65,000 65,000
290,000 290,000
5,100 5,100
7,000 7,000
175,500 175,500
6,500 6,500
669,000 669,000
21,500 21,500
73,800 73,800
84,200 84,200

350 350
350 350
27,000 27,000
7,000 7,000
6,833 6,833
6,833 6,833
33,333 33,333
33,333 33,333
1,500 1,500
898,617 898,617 253,667 669,350 644,950 229,267
415,683 415,683
669,350 669,350 644,950 644,950

350
350

27,000
27,000
 If there is an allowance for bad debts accounts, the entry would be
7,000 Allowance for Bad Debts 7,000
7,000 Accounts Receivable 7,000

6,833
6,833 Bad Debts Expense
Allowance for Bad Debts

33,333
33,333

1,500
1,500

10,000
10,000
A Interest Receivable 350
Interest Income 350
350

B Medical Supplies Expense 27,000

Medical Supplies 27,000

C Bad Debts Expense 7,000

Accounts Receivable 7,000

D Depreciation Expense 6,833

Accum. Depn. - F&F 6,833

6000 (35000-5000)/5
833.3333 (30000/6)*2/12

E Depreciation Expense 33,333

Accum. Depn. - Medical Equipment 33,333
33333.33

F Salaries Expense 1,500

Salaries Payable 1,500

G Unearned Medical Fees Revenue 10,000

Medical Fees Revenue 10,000

86,017
 Allowance Method

If there is a possibility or probability that an account might not be collected

1 Bad Debts Expense 1,000 1
Allowance for Bad Debts 1,000

Once the account is certain not to be collected.

2 Allowance for Bad Debts 1,000 2
Accounts Receivable 1,000

Dr. Cr.
Bad Debts Expense 1,000
Allowance for Bad Debts 1,000 1,000
Accounts Receivable 1,000
Direct Write-Off Method

No Entry

Bad Debts Expense 1,000

Accounts Receivable 1,000
 Accounts Receivable
27,000 7,000
Ending Bal. 20,000