Problem 1. View the list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)
Problem 2. View the list of accounts for Currie Hospital for December 2013 (annual amounts). Prepare a statement of operations for 2013 in good form.
Remember that plant, property and equipment are not current assets on the balance sheet. Also, of note is that you must adjust for the transfer of the parent corporation after you have calculated the operating income to arrive at the unrestricted net assets.
Account Balances for Currie Hospital as of December 31, 2013
Account Balance
Gross plant & equipment $6,000,000
Accounts payable 130,000
Inventories 100,000
Other current liabilities 70,000
Net accounts receivable 650,000
Accrued expenses 100,000
Accumulated depreciation 200,000
Long-term debt 5,000,000
Cash 210,000
Accounts for Currie Hospital for December 2013 (annual amounts)
Account Amount
Administrative expenses $80,000
Net assets released from
temporarily restricted accounts
for operations 120,000
Labor expense 260,000
Interest expense 12,000
Net patient service revenue 840,000
Supply expense 88,000
Transfer to Parent corporation 10,000
Bad debt expense 40,000
Depreciation expense 50,000