Question

For your fictitious healthcare service, 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients.5. May 1, 2019 through December 31, 2019: You begin accepting your first patients. You provide $300,000 in healthcare services for each month through the end of the calendar year. You invoice your patients' health insurance companies on the last day of each month. 6. May 1, 2019 through December 31, 2019: You use $30,000 in supplies to provide healthcare services to your patients each month. You record the use of supplies on the last day of each month. 7. June 1, 2019: You pay your suppliers $80,000 for supplies purchased on credit. 8. July 1, 2019: You receive payments from health insurance companies totaling $250,000. 9. August 1, 2019: a. You purchase $60,000 of supplies on credit for use in caring for your patients. b. You receive payments from health insurance companies totaling $320,000 10. September 1, 2019: You receive payments from health insurance companies totaling $225,000. 11. October 1, 2019: You receive payments from health insurance companies totaling $310,000. 12. November 1, 2019: a.You receive payments from health insurance companies totaling $240,000. b. You pay your suppliers $40,000 for supplies purchased on credit. 13. December 1, 2019: You receive payments from health insurance companies totaling $330,000. 14. December 15, 2019: You make a payment to your equipment financing company of $25,000.

How did you come up with the current asset amount (cash and account receivable)?

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Answer 1

As per our working , the Cash and Account Receivables , stand as under :

ASSETS
1. CURRENT ASSETS	2019
CASH	1530000
ACCOUNT RECEIVABLES	725000
TOTAL CURRENT ASSETS	2255000

Cash Account
2019	Particulars	Amount	Date	Particulars	Amount
July,1	TO AR	250000	June,1	By Accounts Payable	80000
Aug,1	TO AR	320000	Nov,1	By Accounts Payable	40000
Sep,1	TO AR	225000	Dec,15	By Accounts Payable	25000
Oct,1	TO AR	310000	Dec,31	By balance c/d	1530000
Nov,1	TO AR	240000
Dec,1	TO AR	330000
		1675000			1675000

Accounts Receivables
2019	Particulars	Amount	Date	Particulars	Amount
May,31	To Healthcare services	300000	July,1	By Cash	250000
June,30	To Healthcare services	300000	Aug,9	By Cash	320000
July,31	To Healthcare services	300000	Sep,1	By Cash	225000
Aug,31	To Healthcare services	300000	Oct,1	By Cash	310000
Sep,30	To Healthcare services	300000	Nov,1	By Cash	240000
Oct,31	To Healthcare services	300000	Dec,1	By Cash	330000
Nov,30	To Healthcare services	300000	Dec,31	By Bal c/d	725000
Dec,30	To Healthcare services	300000
		2400000			2400000