College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 3E
Dr. L. M. Patton is an ophthalmologist. As of December 31, Dr. Patton owned the following property that related to his professional practice, Patton Eye Clinic:
Cash, $2,995
Professional Equipment, $63,000
Office Equipment, $8,450
On the same date, he owed the following business creditors:
Munez Supply Company, $3,816
Martin Equipment Sales, $3,728
Compute the following amounts in the
Assets $______ = Liabilities $______ + Owner’s Equity $______
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Lisa Anderson, M.D., maintains the accounting records of Anderson Clinic on a cash basis. During 2020, Dr.
Anderson collected $141,493 from her patients and paid $54,018 in expenses. At January 1, 2020, and
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expenses as follows. (All long-lived assets are rented.)
Accounts receivable
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Accrued expenses
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January 1, 2020
$9,027
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3,139
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$15,442
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3,411
Prepare a schedule that converts Dr. Anderson's "excess of cash collected over cash disbursed" for the year
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Conversion of Cash Basis to Accrual Basis
Fred Tang is a property investor. He owns an apartment at Harbord, and a house at Glebe which have been leased to tenants for several years. He also owns land in Shellharbour. Fred received the following amounts in respect of the Harbord and Glebe properties:
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Rent Income (net of agent's commission $5,200)
$ 64,250
Rent received from the rental bond board, which represented unpaid rent from April 2015
1,640
Water usage component of water rates paid recouped from tenant
1,040
Settlement from a tenant that was held to have breached the terms of the lease. The settlement included $10,400 which was in respect of a garage that had to be completely rebuilt. The balance was unpaid rent
13,400
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Cleaning of properties after tenants vacated
740
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Building insurance
380
Repairs and Maintenance
4,400
Decline in Value…
Susan Wilson, M.D., maintains the accounting records of Wilson Clinic on a cash basis. During 2020, Dr. Wilson collected
$155,992 from her patients and paid $60,414 in expenses. At January 1, 2020, and December 31, 2020, she had accounts
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January 1, 2020
December 31, 2020
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$17,087
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2,669
4,464
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3,096
2,024
Prepaid expenses
2,035
2,924
Prepare a schedule that converts Dr. Wilson's "excess of cash collected over cash disbursed" for the year 2020 to net income on an
accrual basis for the year 2020.
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - In July of this year, M. Wallace established a...Ch. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - P. Schwartz, Attorney at Law, opened his office on...Ch. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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