A for-profit hospital opened a new ER Clinic and the clinic completed the following transactions during May: The hospital invested $75,000 cash to start the clinic in exchange for all the clinic's common stock. Paid $24,000 for reception room furniture & clinical equipment. Purchased $23,400 of supplies on account. Later returned $2,400 of the supplies which were defective. The vendor canceled the amount the clinic owed for the returned supplies. Paid $8,200 for selling & advertising expenses. Paid $15,800 to vendors to settle purchases made on account. Saw several patients and collected $125,000 cash. Billed corporate clients for an additional $24,000 of patient services during May. Purchased a new MRI machine for $130,000 of which $80,000 was paid in cash and the clinic issued a note payable of $50,000 for the balance. How much will the ER Clinic report on its balance sheet as ‘Cash’ at May 31?
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A for-profit hospital opened a new ER Clinic and the clinic completed the following transactions during May:
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The hospital invested $75,000 cash to start the clinic in exchange for all the clinic's common stock.
-
Paid $24,000 for reception room furniture & clinical equipment.
-
Purchased $23,400 of supplies on account. Later returned $2,400 of the supplies which were defective. The vendor canceled the amount the clinic owed for the returned supplies.
-
Paid $8,200 for selling & advertising expenses.
-
Paid $15,800 to vendors to settle purchases made on account.
-
Saw several patients and collected $125,000 cash. Billed corporate clients for an additional $24,000 of patient services during May.
-
Purchased a new MRI machine for $130,000 of which $80,000 was paid in cash and the clinic issued a note payable of $50,000 for the balance.
How much will the ER Clinic report on its
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