E3-39B. (Learning Objective 4: Reporting on the financial statements) This question deals with the items and the amounts that two entities, Mother Claire Hospital (Mother Claire) and City of Murcia (Murcia), should report in their financial statements. Fill in the blanks.

Requirements 1. On July 1, 20X6, Mother Claire collected €8,600 in advance from Murcia, a client. Under the contract, Mother Claire is obligated to perform medical exams for Murcia employees evenly during the 12 months ending June 30, 20X7.

Mother Claire’s Income Statement for the year ended December 31, 20X6, will report ___ of € ___.

Mother Claire’s Balance Sheet at December 31, 20X6, will report ___ of € ___.

2. Murcia’s Income Statement for the year ended December 31, 20X6, will report ___ of

€ ___.

Murcia’s Balance Sheet at December 31, 20X6, will report ___ of € ___.