Extracted text: PROBLEM #1 As at December 31, 2019, the accounting records of Soriano Medical Center showed the following balances after closing the temporary accounts: Account Debit Credit Cash 934,000 Accounts Receivable 1,450,000 Medical Supplies 480,000 Prepaid Insurance 600,000 Land 2,500,000 3,000,000 Medical Building Accumulated Depreciation - Medical Building 600,000 Medical Equipment Accumulated Depreciation - Medical Equipment Accounts Payable Notes Payable 1,800,000 180,000 1,200,000 5,400,000 Soriano, Capital 3,384,000 10,764,000 10,764,000 Update the balances at December 31, 2020 considering the following: 1. Rendered medical services amounting to P10,650,000, 60% of this amount is collected while the 40% has been billed. 2. 95% of the accounts receivable outstanding as of December 31,2019 were collected in 2020. The management foresees doubtful collection of the remaining 5%. 3. Medical supplies were purchased, P200,000. 4. The building is expected to be used for 20 years while the medical equipment is to be used for 10 years. 5. The prepaid insurance of P600,000 pertains to the unexpired portion for the remaining 20 months. 6. The note payable consist of the following: Note A Note B Principal 4,000,000 1,400,000 Interest Rate (annual) 12% 15% Maturity December 31, 2025 September 30, 2020 *Note B was fully paid upon maturity. The interest on Note A was paid on January 4, 2021. 7. Salaries expense for the year is at P1,250,000. P110,000 of this amount is to be paid on January 2021. 8. Other operating expenses not mentioned above amounted to P2,400,000. 9. Soriano Medical Center received P450,000 for commissioned research outputs. Research work will begin on 2021. 10. The owner transferred P350,000 from his personal account to Soriano Medical Center's bank account. 11. Medical supplies on hand is valued at P198,000. 12. Paid 75% of the accounts payable.
Extracted text: Requirements: (3 points each) Determine the following balances at December 31, 2020: 1. Total revenues 2. Insurance expense 3. Prepaid insurance 4. Net realizable value of the accounts receivable 5. Medical Supplies 6. Supplies expense 7. Interest Expense 8. Interest Payable 9. Book value of the land 10. Book value of the medical building 11. Book value of the medical equipment 12. Notes Payable 13. Salaries expense 14. Total expenses 15. Profit (loss) 16. Accounts Payable 17. Total Assets 18. Total Liabilities 19. Owner's Equity 20. Net cash inflow (outflow) from operating activities 21. Net cash inflow (outflow) from investing activities 22. Net cash inflow (outflow) from financing activities 23. Change in cash account