Financial Statement Project due in Week 2

The project is assigned in Week 1 but is not due until Week 2. You will work on the first project during Week 1 and 2 that is due in Week 2.A second project will be worked on during Week 3 and 4 and due in Week 4. We will cover various topics during Week 1 and 2 which will help you to complete the project for final submission in Week 2.

South Shore Medical Clinic
Trial Balance
December 31, 20X3
	Debit	Credit
Cash	$50,000
Accounts Receivable	55,000
Supplies	10,000
Inventory	40,000
Equipment	75,000
Building	150,000
Accounts Payable		$25,000
Current Portion - Long Term Debt		35,000
Long Term Debt, net of Current Portion		100,000
Owner's Equity		200,000
Service Fee Revenue		125,000
Salaries Expense	78,500
Rent Expense	24,000
Utilities Expense	2,500
Totals	$485,000	$485,000

Task #1: Using the Trial Balance, prepare an Income Statement.
South Shore Medical Clinic
Income Statement
For the year ending December 31, 20X3
Revenues:
Service Fee Revenue
Total Revenues
Expenses:
Salaries Expense
Rent Expense
Utilities Expense
Total Expenses
Income:
Net Income

Task #2: Using the Trial Balance, enter the appropriate amounts for each account. Classify each as an Asset, Liability, or Equity account then specify if they are current or non-current.
Account	Account Balance	Type of Account	Current/NonCurrent
Cash
Inventory
Supplies
Building
Equipment
Accounts Receivable
Accounts Payable
Current Portion - Long Term Debt
Long Term Debt, net of Current Portion
Owner's Equity
Task #3: Once complete, prepare a Balance Sheet listing the accounts and account balances in the appropriate order. (Keep in mind that Net Income Increases the Owner's Equity Account).
South Shore Medical Clinic
Balance Sheet
December 31, 20X3
ASSETS			LIABILITIES & NET WORTH
Current Assets			Current Liabilities
Cash			Accounts Payable
Accounts Receivable			Current Portion - Long Term Debt
Supplies			Total Current Liabilities
Inventory
Total Current Assets			Non-current Liabilities
			Long Term Debt, net of Current Portion
Non-current Assets			Total Non-Current Liabilities
Equipment
Building			NET WORTH
Total Non-current Assets			Owner's Equity	$200,000
TOTAL ASSETS			TOTAL LIABILITIES & NET WORTH

Questions:
1. Briefly describe whether or not you think this company is profitable.
2. Is the company collecting enough in revenue to cover their expenses?
3. Comment on any suggestions you might have for the company's owners.

In the template above, you are given a trial balance for year ended December 31, 20X3. Using the trial balance, you are required to complete an Income Statement and a Balance Sheet. In addition, another task will be choosing the appropriate type of account classification as well. Lastly, there are a few questions following the completion of the financial statements. All work will be done on the Student Template. Once complete, please save the Student Template with your name in the file name (for example: John Doe - Project #1 or John Doe - Financial Statement Project) and upload under the appropriate box in Week 2.