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Bluemark Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder.

Bluemark's final December 31, 2013 post-closing trial balance appears below.

Bluemark Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder.

Bluemark's final December 31, 2013 post-closing trial balance appears below.

January 1, 2014

Account

Debit

Credit

Cash

20,000

Accounts Receivable

34,500

Prepaid Insurance

700

Supplies

1,000

Building

150,000

Accumulated Depreciation

11,200

Land

120,000

Accounts Payable

7,500

Unearned Revenue

-

Wages Payable

-

Notes Payable

30,000

Capital Stock

50,000

Retained Earnings

227,500

Dividends

-

Income Summary

Service Revenue

-

Wages Expense

-

Utilities Expense

-

Rent Expense

-

Interest Expense

-

Miscellaneous Expense

-

Supplies Expense

-

Insurance Expense

-

Depreciation Expense

-

326,200

326,200

During January, 2014, Bluemark Health Care entered into the following transactions:

Trans #/Date

Description

# 1 - Jan 1

Received $15,000 from Rivers Company as rent for the use of a vacant office in

Bluemark Health Care's building. Rivers paid the rent six months in advance.

#2 - Jan 1

Paid $4,200 for an insurance premium on a general business policy. This payment

was debited to Prepaid Insurance.

#3 - Jan 6

Purchased supplies of $1,800 on accounts.

#4 - Jan 9

Collected $27,500 for services provided to customers on account.

#5 - Jan 11

Paid creditors $3,000 on account.

#6 - Jan 18

The sole shareholder invested an additional $25,000 in the business in exchange for

capital stock.

#7 - Jan 20

Billed patients $62,000 for services provided on account.

#8 - Jan 25

Received $12,900 for services provided to customers who paid cash.

#9 - Jan 30

Paid cash for expenses as follows: wages, $24,000; utilities, $6,000; rent on medical

equipment, $5,000; interest, $200; and miscellaneous, $2,500.

#10 - Jan 30

Paid dividends of $15,000 to stockholders (Dr. Hancock).

January 31, 2014 Bluemark Health Care adjustment data appears below:

Adjust A

$800 of the prepaid insurance expired during January.

Adjust B

$1,100 of supplies were on hand on January 31. (hint: check the unadj supplies bal first).

Adjust C

January depreciation on building was $2,000.

Adjust D

$2,500 of unearned rent revenue was earned.

Adjust E

Wages owed employees but not paid was $1,700.

Adjust F

Services provided but not billed to patients was $10,000.

Requirements:

Prepare a ledger consisting of T-Accounts for all Bluemark accounts. Enter the opening

balances from the January 1, 2014 trial balance.

Prepare journal entries for the 10 transactions in January 2014.

Post the transaction entries to the T-Accounts and prepare a 1/31/14 unadjusted

trial balance.

Prepare the adjusting entries A through F.

Post the adjusting entries to the T-Accounts and prepare an 1/31/14 adjusted trial balance.

Prepare an income statement, retained earnings statement, and a balance sheet for

January 2014.

Prepare closing entries at January 31, 2014 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

Prepare a January 31, 2014 post-closing trial balance.

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