This question deals with the items and the amounts that two entities, Mother Elizabeth Hospital (Mother Elizabeth)

Question:

This question deals with the items and the amounts that two entities, Mother Elizabeth Hospital (Mother Elizabeth) and City of Portland (Portland) should report in their financial statements. Fill in the blanks.

Requirements
1. On July 1, 2010, Mother Elizabeth collected $9,600 in advance from Portland, a client. Under the contract, Mother Elizabeth is obligated to perform medical exams for City of Portland employees evenly during the 12 months ending June 30, 2011. Assume you are Mother Elizabeth.
Mother Elizabeth’s income statement for the year ended December 31, 2010, will report ___ of $ ___.
Mother Elizabeth’s at December 31, 2010, will report ___ of $ ___
2. Assume now that you are Portland.
Portland’s income statement for the year ended December 31, 2010, will report ___ of $ ___.
Portland’s at December 31, 2010, will report ___ of $ ___.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...