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The values listed after January 1 are the beginning balances g Oak Street Clinic

ID: 2812422 • Letter: T

Question

The values listed after January 1 are the beginning balances

g Oak Street Clinic, a not-for-profit, began 2015 with the following account balances on January 1: Cash Accounts receivable Allowance for doubtful accounts Supplies inventory Equipment Accumulated depreciation Accounts payable Notes payable Net assets $ 70,000 245,000 18,000 24,000 1,500,000 300,000 21,000 500,000 1,000,000 During 2015, the accounting clerk recorded the following transactions: 1. Billed patients for services rendered 2. Purchased medical supplies on $1,700,000 12,000 credit 3. Employee salaries carned 4. Employee salaries paid 5. Annual depreciation on equipment 6. Received a bank loan 712,000 683,000 150,000 250,000 1,124,000 44,000 75,000 10,000 7. Cash collections on patient billings 8. Estimated bad debts for year 9. Made payment on bank loan 10. Used medical supplies in patient care

Explanation / Answer

Income statement

Balance Sheet

revenue from service rendered

1700000

Assets

less expenses

current assets

medical supplies expense

10000

cash

70000+1124000+250000-683000-75000

686000

salaries expense

712000

accounts receivables

(245000+1700000)-1124000-44000

777000

Depreciation

150000

supplies

(24000+12000)-10000

26000

bad debt expense

26000

total of current assets

1489000

total of expenses

898000

equipment net off depreciation

1500000-(300000+150000)

1050000

net income

802000

total of assets

2539000

liabilities and shareholders equity

liabilities

current liabilities

accounts payable

21000+12000

33000

notes payable

500000

salaries payable

712000-683000

29000

total of current liabilities

562000

bank loan

250000-75000

175000

total of liabilities

737000

shareholders equity

1000000

1802000

net income

802000

total of liabilities and shareholders equity

2539000

Income statement

Balance Sheet

revenue from service rendered

1700000

Assets

less expenses

current assets

medical supplies expense

10000

cash

70000+1124000+250000-683000-75000

686000

salaries expense

712000

accounts receivables

(245000+1700000)-1124000-44000

777000

Depreciation

150000

supplies

(24000+12000)-10000

26000

bad debt expense

26000

total of current assets

1489000

total of expenses

898000

equipment net off depreciation

1500000-(300000+150000)

1050000

net income

802000

total of assets

2539000

liabilities and shareholders equity

liabilities

current liabilities

accounts payable

21000+12000

33000

notes payable

500000

salaries payable

712000-683000

29000

total of current liabilities

562000

bank loan

250000-75000

175000

total of liabilities

737000

shareholders equity

1000000

1802000

net income

802000

total of liabilities and shareholders equity

2539000