| Bluemark Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder. |
| Bluemark's January 1, 2017 trial balance appears below. |
| Bluemark Health Care, Inc. |
| Trial Balance |
| January 1, 2017 |
| Account | | | Debit | Credit |
| Cash | | | 40,000 |
| Accounts Receivable | | | 60,000 |
| Prepaid Insurance | | | - 0 |
| Supplies | | | 2,000 |
| Building | | | 330,000 |
| Accumulated Depreciation | | | | 40,000 |
| Land | | | 200,000 |
| Accounts Payable | | | | 43,500 |
| Unearned Rent Revenue | | | | - 0 |
| Wages Payable | | | | - 0 |
| Interest Payable | | | | - 0 |
| Notes Payable | | | | 200,000 |
| Capital Stock | | | | 50,000 |
| Retained Earnings | | | | 298,500 |
| Dividends | | | - 0 | |
| Income Summary |
| Service Revenue | | | | - 0 |
| Rent Revenue | | | | - 0 |
| Wages Expense | | | - 0 |
| Utilities Expense | | | - 0 |
| Rent Expense | | | - 0 |
| Interest Expense | | | - 0 |
| Miscellaneous Expense |
| Advertising Expense | | | - 0 |
| Supplies Expense | | | - 0 |
| Insurance Expense | | | - 0 |
| Depreciation Expense | | | - 0 |
| | | | 632,000 | 632,000 |
| Bluemark Health Care completed the following transactions during January 2017 |
| Trans #/Date | Description |
| # 1 - Jan 1 | Received $6,000 from Rivers Company as rent for the use of a vacant office in Bluemark |
| | Health Care's building. Rivers paid rent six months in advance (hint: credit unearned rent revenue). |
| #2 - Jan 1 | Paid $9,000 for an insurance premium on a general business policy. This payment |
| | was debited to Prepaid Insurance. |
| #3 - Jan 6 | Purchased supplies of $5,000 on account. |
| #4 - Jan 9 | Collected $28,000 for services provided to customers on account. |
| #5 - Jan 11 | Paid creditors $21,000 on account. |
| #6 - Jan 18 | The sole shareholder invested an additional $70,000 in the business in exchange for |
| | capital stock. |
| #7 - Jan 20 | Billed patients $164,000 for services provided on account. |
| #8 - Jan 25 | Received $26,000 for services provided to customers who paid cash. |
| #9 - Jan 30 | Paid cash for expenses as follows: wages, $51,000, utilities, $8,000, rent on medical |
| | equipment, $6,800, miscellaneous, $400, and advertising, $4,300. |
| #10 - Jan 30 | Paid dividends of $14,000 to stockholders (Dr. Hancock). |
| #11 - Jan 30 | Received $102,000 cash from customers in payment of services billed on Jan 20. |
| January 31, 2017 Bluemark Health Care adjustment data appears below: |
| Adjust A | $1,500 of the prepaid insurance expired during January. |
| Adjust B | $3,000 of supplies were on hand on January 31. (hint: check the unadj supplies bal first). |
| Adjust C | January depreciation on building was $1,100. |
| Adjust D | $1,000 of unearned rent revenue was earned. |
| Adjust E | Wages owed employees but not paid was $8,000. |
| Adjust F | Services provided but not yet billed to patients was $10,000. |
| Adjust G | There was $2,100 in interest payable on 1/31/17 related to the $200,000 notes payable. |
| Requirements: |
| 1 | Under "Journal Entries" in the "journal, adjust & close entries" worksheet, prepare |
| | journal entries for the 11 transactions in January 2017. |
| 2 | Post (enter) the journal entries from (1) to the Ledger (T-Accounts) in the "Ledger" worksheet. |
| | (Beginning balances have already been entered in the Ledger accounts.) |
| 3 | Under "Adjusting Entries" in the "journal, adjust & close entries" worksheet, prepare the |
| | adjusting entries A through G. |
| 4 | Post (enter) the adjusting entries from (3) to the Ledger (T-Accounts) in the "Ledger" worksheet. |
| 5 | Prepare the adjusted trial balance in the "adjusted and post trial balance" worksheet by |
| | transferring the adjusted ending balances from the "Ledger" worksheet. |
| 6 | Prepare an income statement and retained earnings statement for January 2017 and a |
| | January 31, 2017 balance sheet in the "financial statements" worksheet using the ending balances |
| | from the adjusted trial balance. |
| 7 | Prepare closing entries at January 31, 2017 (in the "journal, adjust & close entries" worksheet) 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 |
| 8 | Post (enter) closing entries from (7) to the Ledger (T-Accounts) in the "Ledger" worksheet. |
| | Then prepare a January 31, 2017 post-closing trial balance in the "adjusted and post trial balance" worksheet |
| | by transferring the final balances from the "Ledger" worksheet. |
| | (Note: there should be no income statement accounts appearing on the post-closing trial balance because |
| | the income statement accounts should all have zero balances.) |
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