Accrual basis accounting
Oasis Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder.
During January 2013, Oasis Health Care entered into the following transactions:
Jan. 1 Received $15,000 from Rivers Company as rent for the use of a vacant office in Oasis Health Care’s building. Rivers paid the rent six months in advance.
1 Paid $4,200 for an insurance premium on a general business policy.
6 Purchased supplies of $1,800 on account.
9 Collected $27,500 for services provided to customers on account.
11 Paid creditors $3,000 on account.
18 Invested an additional $25,000 in the business in exchange for capital stock.
20 Billed patients $62,000 for services provided on account.
25 Received $12,900 for services provided to customers who paid cash.
30 Paid expenses as follows: wages, $24,000; utilities, $6,000; rent on medical equipment, $5,000; interest, $200; and miscellaneous, $2,500.
30 Paid dividends of $15,000 to stockholders (Dr. Hancock).
Analyze and record the January transactions for Oasis Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 2013, balances for the balance sheet are shown below.