This question deals with the items and the amounts that two entities, Mother Meghan Hospital (Mother Meghan)

Question:

This question deals with the items and the amounts that two entities, Mother Meghan Hospital (Mother Meghan) and City of Boston (Boston) should report in their financial statements. Fill in the blanks.

Requirements
1. On July 1, 2010, Mother Meghan collected $6,000 in advance from Boston, a client. Under the contract, Mother Meghan is obligated to perform medical exams for City of Boston employees evenly during the 12 months ending June 30, 2011. Assume you are Mother Meghan.
Mother Meghan’s income statement for the year ended December 31, 2010, will report _____ of $ _____.
Mother Meghan’s at December 31, 2010, will report _____ of $ _____.
2. Assume now that you are Boston.
Boston’s income statement for the year ended December 31, 2010, will report _____ of $ _____.
Boston’s at December 31, 2010, will report _____ of $ _____.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...