1. A for-profit hospital opened a new ER Clinic and the clinic completed the following transactions during...
Question:
1. 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?
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell