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 | |
Want to see more full solutions like this?
Chapter 3 Solutions
Bundle: Survey of Accounting, Loose-Leaf Version, 8th + CengageNOWv2, 1 term Printed Access Card
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Fundamentals of Cost Accounting
Cost Accounting (15th Edition)
Financial Accounting
Horngren's Accounting (11th Edition)
- COMPLETE THE FOLLOWING JOURNAL ENTERIES FOR SAFETY HOSPITAL FOR 2021 a. January 31 - Purchase $7,500.00 worth of supplies with cash b. April 31 –Mailed a check to suppliers for $5,000.00 of the $10,000.00 it owed at the end of 2018 c. June 30- Paid wages in the amount of $3,000.00 that had been previously recorded as a liability. d. July 31 – Submitted bills in the amount of $35,000.00 to insurance companies or services rendered. e. September 30 - Purchased $15,000.00 worth of supplies on accountarrow_forwardSame Day Surgery Center received a 120-day, 7% note for $96,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note.$ c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7arrow_forwardAt the end of the month, the total balance in the accounts receivable account in the general ledger shouldarrow_forward
- Below is the trial balance which was extracted from the books of the Ready Hospital Supplies on June 30, the end of the company’s financial year. You are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s financial statements. Ready Hospital Supplies Trial Balance as at June 30, 2020 Dr $ Cr $ Cash 127,000.00 Accounts Receivable 151,000.00 Allowance for Bad-Debts 12,500.00 Merchandise Inventory 187,500.00 Store Supplies 58,000.00 Prepaid Insurance 72,000.00 Prepaid Rent 56,000.00 Furniture & Fixtures 800,000.00 Accumulated Depreciation: Furniture & Fixtures 256,000.00 Computer Equipment 450,000.00 Accumulated Depreciation: Computer Equipment Accounts Payable 133,500.00 Salaries Payable Interest Payable 27,000.00…arrow_forwardAccounting For the month of September, receipts at the offices of Drs. Lewis and King totaled $35,000. The Medicare/Medicaid adjustment for the month was $1,750, and the managed care adjustment was $4,50. Total charges for the month of September equaled $53,000. a. What is the collection ratio for the month of September? Show your calculations.arrow_forwardRapid Delivery Services establishes a Change Fund of $200. At the end of the day, Rapid Delivery Services had $1,230 on hand. The journal entry to record the day’s receipts would include a:arrow_forward
- Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy.arrow_forwardKathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 21%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month PreviousMonth'sBalance(in $) FinanceCharge(in $) Purchasesand CashAdvances Paymentsand Credits New BalanceEnd of Month(in $) April $641.17 $11.22 $31.45 $85.00 $598.84 May $283.33 $135.00arrow_forwardMore Review Show (MRS) prepares quarterly statements. The bookkeeper presented to you the records and you found out the following account balances before adjustments for the quarter ended March 31, 200B: The notes receivable balance of P180,000 as of March 31, 200B consisted of a 60-day 12% note for P120,000 dated February 14, 200B and a 30-day 6% note for P60,000 dated March 16, 200B Required: Prepare adjusting entryarrow_forward
- Journal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $18,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $21,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $17,000, 45 day, ten percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore's account as uncollectible. Lancaster, Inc., uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $25,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $22,500. Dec.31 Made the…arrow_forwardJournal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $18,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $21,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $17,000, 45 day, ten percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore's account as uncollectible. Lancaster, Inc., uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $25,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $22,500. Dec.31 Made the…arrow_forwardJournal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $18,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $21,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $17,000, 45 day, ten percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore's account as uncollectible. Lancaster, Inc., uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $25,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $22,500. Dec.31 Made the…arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage