This question concerns the items and the amounts that two entities, Henderson Co. and Goodland Hospital, should report in their financial statements.
During November, Goodland provided Henderson with medical exams for Henderson employees and sent a bill for $38,000. On December 7, Henderson sent a check to Goodland for $27,000. Henderson began November with a cash balance of $57,000; Goodland began with cash of $0.
Requirements
1. For this situation, show everything that both Henderson and Goodland 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 Henderson and Goodland data relate to each other.