This question concerns the items and the amounts that two entities, Marion Co. and Ashland Hospital, should report in their financial statements. During November, Ashland provided Marion with medical exams for Marion employees and sent a bill for $48,000. On December 7, Marion sent a check to Ashland for $33,000. Marion began November with a cash balance of $51,000; Ashland began with cash of $0.

Requirements
1. For this situation, show everything that both Marion and Ashland will report on their November and December income statements and on their balance sheets at November 30 and December 31.

2. After showing what each company should report, briefly explain how the Marion and Ashland data relate to each other.