(Learning Objective 4: Reporting on the fi nancial statements) This question deals with the items and the amounts that two entities, Mother Meghan Hospital (Mother Meghan)

and City of Antwerp (Antwerp), should report in their fi nancial statements. Fill in the blanks.

❙ Requirements 1. On July 1, 20X6, Mother Meghan collected $6,000 in advance from Antwerp, a client.

Under the contract, Mother Meghan is obligated to perform medical exams for City of Antwerp employees evenly during the 12 months ending June 30, 20X7. Assume you are Mother Meghan.

Mother Meghan’s income statement for the year ended December 31, 20X6, will report _____ of $ _____.

Mother Meghan’s balance sheet at December 31, 20X6, will report _____ of $ _____.

2. Assume now that you are Antwerp.

Antwerp’s income statement for the year ended December 31, 20X6, will report _____ of $ _____.

Antwerp’s balance sheet at December 31, 20X6, will report _____ of $ _____.