1. **State the problem:** We need to prepare a trial balance for Dr. Romulo Mercado's medical practice as of October 31, 2025, after recording all transactions for the month. 2. **Understand the trial balance:** A trial balance lists all ledger accounts with their debit or credit balances to verify that total debits equal total credits. 3. **List accounts and their balances based on transactions:** - Cash (110): Initial deposit 250,000 + Received 117,000 + Collected 113,000 - Paid 150,000 (clinic and land cash portion) - 60,000 (equipment cash portion) - 39,000 (supplies) - 73,000 (salaries) - 23,000 (repairs) - 3,000 (telephone) - 13,000 (accounts payable) - 200,000 (withdrawal) - 15,000 (dues) Calculate stepwise: $$250,000 + 117,000 + 113,000 = 480,000$$ $$480,000 - 150,000 - 60,000 - 39,000 - 73,000 - 23,000 - 3,000 - 13,000 - 200,000 - 15,000 = 4,000$$ So, Cash = 4,000 debit - Accounts Receivable (120): Billed patients 317,000 - Collected 113,000 = 204,000 debit - Medical Supplies (130): Purchased 39,000 + 17,000 (on account) = 56,000 debit No usage recorded yet, so full amount remains - Prepaid Insurance (140): Acquired insurance for 20,000 debit - Land (150): Acquired for 250,000 debit - Medical Building (160): Acquired clinic for 1,000,000 debit - Medical Equipment (170): Purchased 420,000 + 45,000 (on account) = 465,000 debit - 24% Notes Payable (210): For equipment balance: 420,000 - 60,000 = 360,000 credit - 20% Notes Payable (220): For clinic and land balance: (1,000,000 + 250,000) - 150,000 = 1,100,000 credit - Accounts Payable (230): Medical supplies on account 17,000 + Equipment on account 45,000 - Paid 13,000 = 49,000 credit - Salaries Expense (510): Paid 73,000 debit - Repairs Expense (530): Paid 23,000 debit - Telephone Expense (560): Paid 3,000 debit - Association Dues Expense (550): Paid 15,000 debit - Mercado, Capital (310): Initial investment 250,000 credit - Mercado, Withdrawals (320): Withdrawn 200,000 debit - Medical Revenues (410): Received 117,000 + Billed 317,000 = 434,000 credit 4. **Prepare the trial balance:** | Account | Debit | Credit | |-------------------------|------------|------------| | Cash (110) | 4,000 | | | Accounts Receivable (120)| 204,000 | | | Medical Supplies (130) | 56,000 | | | Prepaid Insurance (140) | 20,000 | | | Land (150) | 250,000 | | | Medical Building (160) | 1,000,000 | | | Medical Equipment (170) | 465,000 | | | Salaries Expense (510) | 73,000 | | | Repairs Expense (530) | 23,000 | | | Telephone Expense (560) | 3,000 | | | Association Dues Expense (550)| 15,000 | | | Mercado, Withdrawals (320)| 200,000 | | | 24% Notes Payable (210) | | 360,000 | | 20% Notes Payable (220) | | 1,100,000 | | Accounts Payable (230) | | 49,000 | | Mercado, Capital (310) | | 250,000 | | Medical Revenues (410) | | 434,000 | | **Totals** | **2,363,000** | **2,363,000** | 5. **Verify:** Total debits = Total credits = 2,363,000, so the trial balance is balanced. **Final answer:** The trial balance as of October 31, 2025, is balanced with total debits and credits of 2,363,000.