Construct the 2015 balance sheet and income statement for the clinic, using the beginning account balances and incorporating the effects of each transaction. 4.9 Oak Street Clinic, a not-for-profit, began 2015 with the followingNet incomeaccount balances on January ].Cash2470,000245,00018,00024,0001,500,000300,00021,000500,0001,000,000Accounts receivableAllowance for doubtful accountsSupplies inventoryEquipmentAccumulated depreciationAccounts payableNotes payableNet assetsDuring 2015, the accounting clerk recorded the following transactions:1. Billed patients for services rendered2. Purchased medical supplies on$1,700,00012,000credit3. Employee salaries earned4. Employee salaries paid5. Annual depreciation on equipment712,000683,000150,000250,0006. Received a bank loan1,124,0007. Cash collections on patient billings8. Estimated bad debts for year44,00075,0009. Made payment on bank loan10. Used medical supplies in patient care10,000 . 2006. "The Balance Sheet: A Snapshot of Your Financial Health." HealthcareIthcare Financebalances and incorporating the effects of each transaction.Resourcesing Guide for Healthcare Entities. New York: AICPA.care Financial Management (September): 158-62.Financial Management (May): 124-25.Song, P. H., and K. L. Reiter. 2010. “"Trends in Asset Structure Between Not.foProfit and Investor-Owned Hospitals." Medical Care Research and Revie(August): 694-706.Waldron, D. J. 2005. "Technology Strategy and the Balance Sheet: 3 Points to Con-sider." Healthcare Financial Management (May): 70–76.

Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…

Answered: Construct the 2015 balance sheet and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Construct the 2015 balance sheet and income statement for the clinic, using the beginning account balances and incorporating the effects of each transaction.

4.9 Oak Street Clinic, a not-for-profit, began 2015 with the following
Net income
account balances on January ].
Cash
24
70,000
245,000
18,000
24,000
1,500,000
300,000
21,000
500,000
1,000,000
Accounts receivable
Allowance for doubtful accounts
Supplies inventory
Equipment
Accumulated depreciation
Accounts payable
Notes payable
Net assets
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 earned
4. Employee salaries paid
5. Annual depreciation on equipment
712,000
683,000
150,000
250,000
6. Received a bank loan
1,124,000
7. Cash collections on patient billings
8. Estimated bad debts for year
44,000
75,000
9. Made payment on bank loan
10. Used medical supplies in patient care
10,000

. 2006. "The Balance Sheet: A Snapshot of Your Financial Health." Healthcare
Ithcare Finance
balances and incorporating the effects of each transaction.
Resources
ing Guide for Healthcare Entities. New York: AICPA.
care Financial Management (September): 158-62.
Financial Management (May): 124-25.
Song, P. H., and K. L. Reiter. 2010. “"Trends in Asset Structure Between Not.fo
Profit and Investor-Owned Hospitals." Medical Care Research and Revie
(August): 694-706.
Waldron, D. J. 2005. "Technology Strategy and the Balance Sheet: 3 Points to Con-
sider." Healthcare Financial Management (May): 70–76.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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