Question

94 MAs Intraduction to Hosptal Accounng P4.4. The following balances appcare ine gecral leüger of Deerly Hospital at Devember 31, 20x2: $31,100 89.700 Accounts receivable Inventory Buildings Equipment Accounts payahle Notes payable Bonds payable Hospital net assets Revenue and expense suTimary Routine services revenue Ancillary services revenue Other operating revenues Salaries and wages expense Supplies expense Utilities expernse Insuränce expense Repairs expense Interest expense Other expenses 372.300 38.500 Reguied: ( Prepare orksheet to develop financial statements for the year ended Dexember 31, 20X2. (2) Prepare, in gxl form, financial statements for 20X2. [3) Prepare in general journal form, closing entries for 20X2

Answer 1

General worksheet includes Trial Balance, adjusted entries and adjusted Trial Balance which assist in preparation of financial statements. The Trial Balance has been prepared as follows

In the books of Deerly Hospital Trial Balance As at December 31,2018 Account no Accounts Debit Credit 101 Cash 104 Accounts Receivable 106 Inventor 120 Land 130 Buildings 140 Equipment 201 Accounts Payable 202 Notes Payable 250 Bonds Payable 301 Hospital Net Assets 401 Routine service revenue 402 Ancilliary services revenue 406 Other operating Revenue 601 Salaries & wages expense 602 Supplies expense 603 Utilities expenses 604 Insurance expense 605 Repairs Expense 608 Interest expense 610 Other expenses 31,100 89,700 11,200 25,000 240,000 114,000 22,800 28,000 75,000 372,300 140,700 79,900 21,300 150,800 38,500 22,100 4,700 3,200 7,900 1,800 740,000 740,000

The financial statement include the Income statement, Balance sheet and the Cash Flow statements. In absence of details for preparation of Cash Flow Statements, Income statement and Balance sheet have been prepared as follows

In the books of Deerly Hospital Income statement As at December 31,2018 In the books of Deerly Hospital Balance Sheet As at December 31,2018 Revenues Routine service revenue Ancilliary services revenue Other operating Revenue Total Revenues Assets Current Assets Cash Accounts Receivable Inven Total Current Assets 31,100 89,700 11,200 132,000 140,700 79,900 21,300 241,900 Operating Expenses Salaries & wages expense Supplies expense Utilities expense:s Insurance expense Repairs Expense Other expenses Total Operat Non-Current Assets Land Buildings Equipment Total 150,800 38,500 22,100 4,700 3,200 1,800 25,000 240,000 114,000 379,000 rrent Assets Total Assets 11,000 Revenue 221,100 Liabilities & Owner's Equit Income 20,800 Interest Expenses 7900 Current Liabilities Accounts Payable Notes Payable Total Current Liabilities 22,800 28,000 50,800 Net Income 12,900 0 Non-Current Liabilities Bonds Payable 75,000 Total Liabilities 125,800 385,200 Owner's Equity Liabilities & Owne's Equity 511,000

The owner's Equity has been computed as follows

Opening Owner's Equity	372,300
Add. Net Profit earned during the year	12,900
Closing Owner's Equity	385,200

3

Closing Journal Entries Accounts Debit Credit Routine service revenue Ancilliary services revenue Other operating Revenue Income summary Revenues transferred to Income summary 140,700 79,900 21,300 241,900 Income summary Salaries & wages expense Supplies expense Utilities expense:s Insurance expense Repairs Expense Other expenses Interest Expenses Expenses transferred to Income summar 229,000 150,800 38,500 2,100 4,700 3,200 1,800 7900 Income summar Retained earnin Net Profit transferred to retained earnings 12,900 12,900