1. The Childrens Medical Center (CMC) began operations on January 1^st 2020 with $10,000 in cash and $10,000 in net assets without donor restrictions.

(1) In a transactions-worksheet, record transactions 1 through 8 below. Be sure to clearly identify the accounts impacted by each transaction.

(2) Prepare a balance sheet for CMC as of December 31, 2020.

(3) Also, prepare an activity statement for CMC for the fiscal year 2020.

During the year the following transactions occurred:

1) CMC received an unrestricted $10,000 cash donation from a benefactor on January 15, 2020.

2) CMC bought Equipment for $8,000 in cash. It has a useful life of five years, no residual value. CMC uses straight-line depreciation.

3) Supplies (inventory) are purchased for $5,000. The supplier sent CMC a bill.

4) Staff earned $40,000 in wages. Of that total, $36,000 was paid.

5) $3,000 of supplies were used.

6) Patient bills in the amount of $50,000 are sent to patients. CMC expects to collect 100% of the amount billed.

7) $30,000 of cash is received from patients to whom bills were sent in Transaction 6.

8) CMC pays its inventory supplier $3,000.