An organization purchase medical equipment for $90,000. They pay cash at the time of purchase of $15,000 and take out a loan with a 5-year payback period for the balance due. Please prepare a journal entry to record this transaction on the accounting records on the accrual basis of accounting.
A clinic provided patient services for the month totaling $100,000. Patients paid $30,000 at the time of service and the remaining balances are due in the future. Please prepare a journal entry that would record these transactions on the cash basis of accounting.
A clinic purchases an CT- machine for $300,000. Using straight line depreciation method, what is the annual depreciation expense that we would record each year on this equipment. Assume the equipment has a useful life of 8 years and a salvage value of 25% at the end of 8 years. Please show all calculations.
A medical center takes out a loan to fund operating expenses for the coming 6 months. The loan is for a total of 85,000. What entry would you make to reflect this loan? Assume accrual accounting
A clinic recorded prepaid expenses of 30,000 when it paid their malpractice insurance for 2013. The original entry was made on the books on 12/31/2012. It is now 06/30/2013 and the clinic is closing the books. What entry will they make to record malpractice insurance expense for the first half of 2013.
Journal entry to record the acquisition of medical equipment is as follows:
Journal entry to recognize the services provided and cash received is as follows:
Depreciation:
CT Machine cost = $300,000
Useful life = 8 years
Salvage Value = 25% = $300,000 x 25% = $75,000
Annual depreciation expense in SLM = (Cost - Salvage Value)/Useful Life
Annual Depreciation = ($300,000 - $75,000)/8
Annual Depreciation = $28,125 per year.
Entry to reflect the loan taken to fund the future operating expenses is as follows:
Entry to record the insurance expense for the first 6 months is as follows:
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