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Preparation of worksheet, financial statements and closing entries The ledger of HNM Medical Service contains the accounts and account balances shown...

Preparation of worksheet, financial statements and closing entries

The ledger of HNM Medical Service contains the accounts and account balances shown below on 30 June 2017:

Account

Cash at Bank

Accounts Receivable

Prepaid Insurance

Land

Building

Accumulated Depreciation - Building Equipment

Accumulated Depreciation - Equipment Accounts Payable

Mortgage Payable

Owner, Capital

Owner, Drawings

Fees Earned

Rent Revenue

Salaries Expense

Telephone Expense

Interest Expense

Insurance Expense

Debit

$ 12 600 11 800 1 800 180 200 196 000

32 300

86 500

124 600 4 520 3 080 36 480 $689 880

Credit

$86 900

8 800 16 400 64 000

236 950

262 430 14 400

$689 880

The following account titles are included in the chart of accounts:

Interest Payable

Salaries Payable

Rates Payable

Unearned Fees

Depreciation Expense - Building Depreciation Expense - Equipment Rates Expense

The following information has not yet been recorded:

  1. Rates owing at 30 June, $4820.
  2. Depreciation on the equipment is $3680. Depreciation on the building is $9600.
  3. An advance fee payment of $600 for minor surgery to be performed in July 2017 was
  4. credited to Fees Earned.
  5. The mortgage contract provides for a monthly payment of $1000 plus accrued interest. The
  6. June payment was not made. The interest of $260 is accrued on the mortgage.

Semester 1 2018 Page 2 of 4

TACC401 Principles of Accounting Top Education Institute

Sydney City School of Business

5. Prepaid insurance of $1340 has expired.

6. Salaries earned but not paid amount to $2360.

Required

  1. Prepare a 10-column worksheet for the year ended 30 June 2017. (20 points)
  2. Prepare an income statement, a statement of changes in equity and a balance sheet. (30
  3. points)
  4. Journalise the closing entries. (10 points) 

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