The values listed after January 1 are the beginning balances g Oak Street Clinic
ID: 2812422 • Letter: T
Question
The values listed after January 1 are the beginning balances
g Oak Street Clinic, a not-for-profit, began 2015 with the following account balances on January 1: Cash Accounts receivable Allowance for doubtful accounts Supplies inventory Equipment Accumulated depreciation Accounts payable Notes payable Net assets $ 70,000 245,000 18,000 24,000 1,500,000 300,000 21,000 500,000 1,000,000 During 2015, the accounting clerk recorded the following transactions: 1. Billed patients for services rendered 2. Purchased medical supplies on $1,700,000 12,000 credit 3. Employee salaries carned 4. Employee salaries paid 5. Annual depreciation on equipment 6. Received a bank loan 712,000 683,000 150,000 250,000 1,124,000 44,000 75,000 10,000 7. Cash collections on patient billings 8. Estimated bad debts for year 9. Made payment on bank loan 10. Used medical supplies in patient careExplanation / Answer
Income statement
Balance Sheet
revenue from service rendered
1700000
Assets
less expenses
current assets
medical supplies expense
10000
cash
70000+1124000+250000-683000-75000
686000
salaries expense
712000
accounts receivables
(245000+1700000)-1124000-44000
777000
Depreciation
150000
supplies
(24000+12000)-10000
26000
bad debt expense
26000
total of current assets
1489000
total of expenses
898000
equipment net off depreciation
1500000-(300000+150000)
1050000
net income
802000
total of assets
2539000
liabilities and shareholders equity
liabilities
current liabilities
accounts payable
21000+12000
33000
notes payable
500000
salaries payable
712000-683000
29000
total of current liabilities
562000
bank loan
250000-75000
175000
total of liabilities
737000
shareholders equity
1000000
1802000
net income
802000
total of liabilities and shareholders equity
2539000
Income statement
Balance Sheet
revenue from service rendered
1700000
Assets
less expenses
current assets
medical supplies expense
10000
cash
70000+1124000+250000-683000-75000
686000
salaries expense
712000
accounts receivables
(245000+1700000)-1124000-44000
777000
Depreciation
150000
supplies
(24000+12000)-10000
26000
bad debt expense
26000
total of current assets
1489000
total of expenses
898000
equipment net off depreciation
1500000-(300000+150000)
1050000
net income
802000
total of assets
2539000
liabilities and shareholders equity
liabilities
current liabilities
accounts payable
21000+12000
33000
notes payable
500000
salaries payable
712000-683000
29000
total of current liabilities
562000
bank loan
250000-75000
175000
total of liabilities
737000
shareholders equity
1000000
1802000
net income
802000
total of liabilities and shareholders equity
2539000
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