Accounting Worksheet

Doctors Smith and Brown: Statement of Net Income

for the Three Months Ended March 31, 2___

Revenue Net patient service revenue 180,000 Other revenue -0-

Total Operating Revenue 180,000

Expenses Nursing/PA salaries 16,650 Clerical salaries 10,150 Payroll taxes/employee benefits 4,800 Medical supplies and drugs 15,000 Professional fees 3,000 Dues and publications 2,400 Janitorial service 1,200 Office supplies 1,500 Repairs and maintenance 1,200 Utilities and telephone 6,000 Depreciation 30,000 Interest 3,100 Other 5,000

Total Expenses 100,000

Income from Operations 80,000

Nonoperating Gains (Losses) Interest Income -0-

Nonoperating Gains, Net -0-

Net Income 80,000

Chapter 10 373

78941_EXAM_355_430.qxd 11/30/09 12:54 PM Page 373

3468

374 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS

Doctors Smith and Brown Balance Sheet March 31, 2___

Assets Current Assets

Cash and cash equivalents 25,000 Patient accounts receivable 40,000 Inventories—supplies and drugs 5,000

Total Current Assets 70,000

Property, Plant, and Equipment Buildings and Improvements 500,000 Equipment 800,000

Total 1,300,000 Less Accumulated Depreciation (480,000) Net Depreciable Assets 820,000 Land 100,000

Property, Plant, and Equipment, Net 920,000

Other Assets 10,000

Total Assets 1,000,000

Liabilities and Capital

Current Liabilities Current maturities of long-term 10,000

debt Accounts payable and accrued 20,000

expenses

Total Current Liabilities 30,000

Long-Term Debt 180,000 Less Current Portion of Long-Term Debt (10,000) Net Long-Term Debt 170,000

Total Liabilities 200,000

Capital 800,000

Total Liabilities and Capital 1,000,000

Doctors Smith and Brown Statement of Changes in Capital

for the Three Months Ended March 31, 2___

Beginning Balance $720,000 Net Income 80,000 Ending Balance $800,000

78941_EXAM_355_430.qxd 11/30/09 12:54 PM Page 374

3468