For your fictitious healthcare service, you will create a balance sheet and income statement based upon...
For your fictitious healthcare service, you will create a balance sheet and income statement based upon the following financial transactions occurring during your start-up year: 1. January 1, 2019: $1,000,000 is deposited by your health system into your entity account to finance the start-up of your operation. 2. February 1, 2019: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and a salvage value of $50,000. You use straight-line depreciation. 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients. 4. April 1, 2019: All of your budgeted staff members begin working. They are paid on a monthly basis, with the first payroll date of April 1, 2019. Each payroll date occurs on the 1st of each month. 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. 15. December 31, 2019: You generate your year-end Balance Sheet and Income Statement.
Homework Answers
Fictitious Healthcare Service
Balance Sheet as at 31-12-2019
| Liabilities | Amount $ | Assets | Amount $ |
| Capital | 10,00,000 | Fixed Assets | 2,50,000 |
| Add: Surplus of Income over Expenditure | 19,50,000 | Less: Depreciation (Working 3) | -20,000 |
| Trade Payables (Working 4) | 40,000 | Net Assets | 2,30,000 |
| Current Liabilities (To finance co) | 2,25,000 | Trade Receivables (Working 2) | 8,30,000 |
| Salaries Payable | 30,000 | Bank Balances (working 1) | 21,85,000 |
| 32,45,000 | 32,45,000 |
Fictitious Healthcare Service
Income Statement as on 31-12-2019
| Date | Expenditure | Amount $ | Date | Income | Amount $ |
| 31-03-2019 | To Consumption of supplies | 2,40,000 | 31-03-2019 | Services Billing/Income from Services | 24,00,000 |
| 31-03-2019 | Changes in Stock (Working 5) | -80,000 | |||
| 31-03-2019 | To Salaries (9 months *30000) | 2,70,000 | |||
| 31-03-2019 | To Depreciation | 20,000 | |||
| 31-03-2019 | To Surplus of Income over Expenditure | 19,50,000 | |||
| 24,00,000 |
24,00,000 |
Assumed $30000 per month as budgeted payroll.
Workings
1. Bank A/c
| Date | Payments | Amount $ | Date | Receipts | Amount $ |
| 01-05-2019 | To Salaries | 30,000 | 01-01-2019 | Capital Brought in | 10,00,000 |
| 01-06-2019 | To Payment to Supplies | 80,000 | 01-07-2019 | Receipts from Insurance Companies | 2,50,000 |
| 01-06-2019 | To Salaries | 30,000 | 01-08-2019 | Receipts from Insurance Companies | 3,20,000 |
| 01-07-2019 | To Salaries | 30,000 | 01-09-2019 | Receipts from Insurance Companies | 2,25,000 |
| 01-08-2019 | To Salaries | 30,000 | 01-10-2019 | Receipts from Insurance Companies | 3,10,000 |
| 01-09-2019 | To Salaries | 30,000 | 01-11-2019 | Receipts from Insurance Companies | 2,40,000 |
| 01-10-2019 | To Salaries | 30,000 | 01-12-2019 | Receipts from Insurance Companies | 2,25,000 |
| 01-11-2019 | To Salaries | 30,000 | |||
| 01-11-2019 | To Payment to Supplies | 40,000 | |||
| 01-12-2019 | To Salaries | 30,000 | |||
| 15-12-2019 | To Payment to finance Company | 25,000 | |||
| To Balance C/f | 21,85,000 | ||||
| 25,70,000 | 25,70,000 |
2. Trade Receivables
| Date | Particulars | Amount $ | Date | Particulars | Amount $ |
| 01-07-2019 | Receipts from Insurance Companies | 2,50,000 | 31-05-2019 | Services Billing/Income from Services | 3,00,000 |
| 01-08-2019 | Receipts from Insurance Companies | 3,20,000 | 30-06-2019 | Services Billing/Income from Services | 3,00,000 |
| 01-09-2019 | Receipts from Insurance Companies | 2,25,000 | 31-07-2019 | Services Billing/Income from Services | 3,00,000 |
| 01-10-2019 | Receipts from Insurance Companies | 3,10,000 | 31-08-2019 | Services Billing/Income from Services | 3,00,000 |
| 01-11-2019 | Receipts from Insurance Companies | 2,40,000 | 30-09-2019 | Services Billing/Income from Services | 3,00,000 |
| 01-12-2019 | Receipts from Insurance Companies | 2,25,000 | 31-10-2019 | Services Billing/Income from Services | 3,00,000 |
| 31-12-2019 | To Balance C/f | 8,30,000 | 30-11-2019 | Services Billing/Income from Services | 3,00,000 |
| 31-12-2019 | Services Billing/Income from Services | 3,00,000 | |||
| 24,00,000 | 24,00,000 | ||||
3. Fixed Assets:
Depreciation= Cost of Asset-Salvage Value
No. of years useful
=($250000 - $50000)/10=$20000
4 Trade Payables
| 01-01-2019 | To purchases | 100000 | 01-06-2019 | By Payment | 80000 |
| 01-07-2019 | To purchases | 60000 | 01-11-2019 | By Payment | 40000 |
| 31-12-2019 | By Balance | 40000 | |||
| 160000 | 160000 |
5
Changes in Stock
Consumption of supplies $30000 *8=$240000
Less: Total Purchases $160000
Nett changes -$80,000
Add Answer to:
For your fictitious healthcare service, you will create a
balance sheet and income statement based upon...
For your fictitious healthcare service, you will create a balance sheet and income statement based upon...
For your fictitious healthcare service, you will create a balance sheet and income statement based upon the following financial transactions occurring during your start-up year: 1. January 1, 2019: $1,000,000 is deposited by your health system into your entity account to finance the start-up of your operation. 2. February 1, 2019: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and...
For your fictitious healthcare service: 2. February 1, 2019: You acquire equipment needed to provide services...
For your fictitious healthcare service: 2. February 1, 2019: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and a salvage value of $50,000. You use straight-line depreciation. 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients. 4. April 1, 2019: All of your budgeted staff members begin working. They are paid...
For your fictitious healthcare service, 3. March 1, 2019: You purchase $100,000 of supplies on credit...
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...
For your fictitious healthcare service,: 1. January 1, 2019: $1,000,000 is deposited by your health system...
For your fictitious healthcare service,: 1. January 1, 2019: $1,000,000 is deposited by your health system into your entity account to finance the start-up of your operation. 2. February 1, 2019: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and a salvage value of $50,000. You use straight-line depreciation. 3. March 1, 2019: You purchase $100,000 of supplies on credit...
i want the income statement, statement of retained earnings, and balance sheet 2 MIX Inc. is...
i want the income statement, statement of retained earnings, and
balance sheet
2 MIX Inc. is a service business incorporated on January, 2018 to provide personal training for athletes aspiring to play college sports. The following is a simplified list of accounts and amounts reported in its accounting records at the beginning of its second quarter of operations on April 1, 2018(the amounts are in thousands of dollars). The accounts have normal debit or credit balances. Accounts Payable $ 600...
Complete a income statement, balance sheet and cash flow statement. 8. The following is the ending...
Complete a income statement, balance sheet and cash flow
statement.
8. The following is the ending Balance Sheet for Part- Time Programmers Co. The company provides tem- porary computer and data processing help to orga nizations. It is a small, new organization. Part-Time Programmers Oct. 31, 20xx $1,800 2,000 500 14,200 $18,500 $4,500 Accounts Payable Cash Gov. Securities Supplies Equipment Total Assets 5,000 Wages Payable 1,000 Tax Payable 8,000 Net Worth $18,500Total Liabilities +N.W. a. Receive $800 from customer for...
Goal: Create an Excel worksheet to prepare an income statement, a balance sheet and a statement...
Goal: Create an Excel worksheet to prepare an income statement, a balance sheet and a statement of changes in equity for a start-up business. Scenario: You have started a valet parking business called First Class Valet. You have tracked your cash, supplies, revenues, expenses, and other items in a spreadsheet. The totals for each account at the end of your first month are as follows (ignore GST): 1. Sales Revenues, $400 2. Supplies on hand (asset account), $175 3. Cash,...
Need help setting up Adjusted balance, Unadjusted balance, trial balance, Income statement, balance sheet, retained earnings,...
Need help setting up Adjusted balance, Unadjusted balance,
trial balance, Income statement, balance sheet, retained earnings,
and closing entries.
Guadalupe Rios demonstrated entrepreneurial spirit by starting a graphic design business called G's Designs. Based on an excellent business plan, Guadalupe was able to raise sufficient capital to begin operations on 1 July 2019. Guadalupe must now close the books at 31 December and prepare financial statements, 4 6 8 Item Adjusting entries needed 1 The balance in the Prepaid Insurance...
Prepare a statement of Financial Position and an Income Statement for the new legal firm of...
Prepare a statement of Financial Position and an Income Statement for the new legal firm of Dewy, Cheatem, and Howe's first month of operation ending December 31, 2018./ 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The three partners invested $30,000 cash in the business. Paid premium for two-year liability insurance policy, $1,500. Purchased office equipment with a cost of $20,000 with $5,000 down payment; the balance to be paid over three years $5,000 in computers and $15,000...
Francis Corporation - Income Statement, Balance sheet and CFO
a.On January 1, 2018, Francis Corporation started business and the owners contributed$200,000 capital in cash.b.The company paid $24,000 to cover the rent for the office space for the 24-monthperiod from January 1, 2018 to December 31, 2019.c.On March 1, 2018, MSK Inc. entered into a consulting contract under which FrancisCorporation promised to provide consulting to MSK Inc. for the 10-month period fromMarch 1, 2018 to December 31, 2018....
i want the income statement, statement of retained earnings, and
balance sheet
2 MIX Inc. is a service business incorporated on January, 2018 to provide personal training for athletes aspiring to play college sports. The following is a simplified list of accounts and amounts reported in its accounting records at the beginning of its second quarter of operations on April 1, 2018(the amounts are in thousands of dollars). The accounts have normal debit or credit balances. Accounts Payable $ 600...
Complete a income statement, balance sheet and cash flow
statement.
8. The following is the ending Balance Sheet for Part- Time Programmers Co. The company provides tem- porary computer and data processing help to orga nizations. It is a small, new organization. Part-Time Programmers Oct. 31, 20xx $1,800 2,000 500 14,200 $18,500 $4,500 Accounts Payable Cash Gov. Securities Supplies Equipment Total Assets 5,000 Wages Payable 1,000 Tax Payable 8,000 Net Worth $18,500Total Liabilities +N.W. a. Receive $800 from customer for...
Need help setting up Adjusted balance, Unadjusted balance,
trial balance, Income statement, balance sheet, retained earnings,
and closing entries.
Guadalupe Rios demonstrated entrepreneurial spirit by starting a graphic design business called G's Designs. Based on an excellent business plan, Guadalupe was able to raise sufficient capital to begin operations on 1 July 2019. Guadalupe must now close the books at 31 December and prepare financial statements, 4 6 8 Item Adjusting entries needed 1 The balance in the Prepaid Insurance...
Prepare a statement of Financial Position and an Income Statement for the new legal firm of Dewy, Cheatem, and Howe's first month of operation ending December 31, 2018./ 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The three partners invested $30,000 cash in the business. Paid premium for two-year liability insurance policy, $1,500. Purchased office equipment with a cost of $20,000 with $5,000 down payment; the balance to be paid over three years $5,000 in computers and $15,000...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 27 minutes ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 26 minutes ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 31 minutes ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 41 minutes ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 1 hour ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 55 minutes ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 1 hour ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 1 hour ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 1 hour ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 1 hour ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 1 hour ago -
How much money should be invested today in order to have $8340
at the end of...
asked 1 hour ago