On October 31, Iowa Hospital had $710,000 of assets, $230,000 of liabilities, and $480,000 of net assets.
Question:
On October 31, Iowa Hospital had $710,000 of assets, $230,000 of liabilities, and $480,000 of net assets. Transactions completed during the month of November were as follows:
1. Supplies purchased on account totaled $29,000.
2. Supplies that had cost $26,000 were issued from inventory and used in patient care. Patients were billed $31,000.
3. Employees were paid $84,000 of salaries and wages.
4. Patients were billed for November services as follows:
Daily patient services $51,500
Other professional services 37,500
Total $89,000
5.Other operating revenues received in cash amounted to $2,800.
6.Purchase of new equipment on account was for $12,000.
7.Payments on accounts payable amounted to $24,700.
8. Collections on accounts receivable totaled $102,600.
9. Miscellaneous other expenses paid in cash came to $14,300.
Required: (1) Prepare a debit and credit analysis of the above information in T-account form, including a closing entry at November 30. (2) Prepare an income statement for November that is as detailed as possible.
Expert Answer:
