This question concerns the items and the amounts that two entities, Nashua Co., and Ditka Hospital, should report in their financial statements.
During September, Ditka provided Nashua with medical exams for Nashua employees and sent a bill for $46,000. On October 7, Nashua sent a check to Ditka for $34,000. Nashua began September with a cash balance of $57,000; Ditka began with cash of $0.

Requirements
1. For this situation, show everything that both Nashua and Ditka will report on their September and October income statements and on their balance sheets at September 30 and October 31.
2. After showing what each company should report, briefly explain how the Nashua and
Ditka data relate to each other.