Financial statements
Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2.
Instructions
Prepare an income statement, statement of
Concept Introduction:
The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.
The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.
The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.
To Prepare:
An income statement,statement of stockholder's equity,and balance sheet for the year ended January.
Answer to Problem 3.3P
The income statement so prepared provides a net income of
Explanation of Solution
S. M. Health Care
Income Statement
For the year endedJanuary
Particulars | | Amount |
Revenues | ||
Fees earned | | |
Income from rent | | |
Total Revenue | | |
Less: Expenses | ||
Insurance Expense | | |
Rent Expense | | |
Supplies Expense | | |
Interest Expense | | |
Depreciation | | |
Wages Expense | | |
Miscellaneous Expense | | |
Total Expenses | | |
Net Income | |
S. M. Health Care
Statement of Stockholder's Equity
For the year endedJanuary
Particulars | Common Stock | Retained Earnings | Amount |
Opening Balance | | | |
Issues common stock | | | |
Net income | | | |
Dividend paid | | | |
Closing Balance | | | |
S. M. Health Care
Balance Sheet
For the year endedJanuary
Assets | | Amount |
Cash | | |
Account receivable | | |
Other assets | | |
Property, plant, and equipment: | ||
Building | | |
Less: Accumulated depreciation block | | |
| ||
Land | | |
Total Assets | | |
Liabilities and Stockholder's equity | ||
Liabilities: | ||
Expenses payable | | |
Unearned rent | | |
Notes payable | | |
Stockholder's equity: | ||
Capital | | |
Total liabilities and stockholder's equity | |
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Chapter 3 Solutions
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