Question

Oak Street Clinic is a not-for-profit health care organization. It began the year 2015 with the following account balances: Cash $ 70,000 Accounts receivable $245,000 Bad debt allowance $18,000 Inventory $24,000 Plant and equipment $1,500,000 Accumulated depreciation $300,000 Accounts payable (AP) $21,000 Notes payable (NP) $500,000 Net assets (equity) $1,000,000 During the year 2015, it recorded the following financial transactions: Provided patient care services on credit $1,700,000 Purchased medical supplies on credit (AP) $12,000 Annual depreciation expense on equipment $150,000 Received a bank loan (NP) $250,000 Received payment from 3rd party for $1,124,000 Patient care services already provided (AR) Estimated bad debt for 2015 $44,000 Made installment payment on bank loan (NP) $75,000 Used medical supplies to provide patient services $10,000 Based on this information, construct the Clinic’s end of year 2015 balance sheet.

Answer 1

Oak Street Clinic
Balance Sheet
For the year ended December 31, 2015
	Amount ($)	Amount ($)
ASSETS
Current assets
Cash	13,16,000
Account Receivable	19,45,000
Less: Allowance for DD	-62,000
Supplies	26,000
Current Assets		32,25,000
Equipment	15,00,000
Acc Dep-Equipment	-4,50,000	10,50,000
Total assets		42,75,000
LIABILITIES AND EQUITY
Current liabilities
Accounts Payable	33,000
Notes Payable	5,00,000
Salaries Payable	29000
Total current liabilities		5,62,000
Bank loan		175000
Total liabilities		5,62,000
Shareholdersâ Equity
Retained earnings		19,08,000
Total liabilities and stockholders equity		24,70,000