Module 3 Class Problems and Discussions

February 9, 2017

1. Given below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)

Account		Balance
Gross plant & equipment		$6,000,000
Accounts payable		130,000
Inventories		100,000
Other current liabilities		70,000
Net accounts receivable		650,000
Accrued expenses		100,000
Accumulated depreciation		200,000
Long-term debt		5,000,000
Cash		210,000

2. Below is a list of accounts for Currie Hospital for December 2013 (annual amounts). Prepare a statement of operations for 2013 in good form.

Account		Amount
Administrative expenses		$80,000
Net assets released from temporarily restricted accounts for operations		120,000
Labor expense		260,000
Interest expense		12,000
Net patient service revenue		840,000
Supply expense		88,000
Transfer to parent corporation		10,000
Bad debt expense		40,000
Depreciation expense		50,000