Assume for the purposes of illustration that the organization began with no assets or liabilities. During the first week in operation, only two transactions occurred:

$150,000 worth of services rendered, and patients paid $50,000 of this amount. Thus, the balance sheet would show Cash of $ ___________. Patient Accounts Receivable of $_____________ and Net Assets of $____________. Hence, the increase in net assets since the last period was $____________.

2. Balance Sheet. The following are account balances as of September 30, 20X1 for Zachary Hospital. Prepare a balance sheet at September 30, 20X1 (hint: Net Assets will also need to be calculated).

Gross Plant, Property and Equipment $6,000,000

Cash $180,000

Net Accounts Receivable $650,000

Accrued Expenses $35,000

Supplies $100,000

Long-term Debt $5,000,000

Accounts Payable $130,000

Accumulated Depreciation $100,000

3. Statement of Operations. The following are annual account balances as of September 30, 20X1 for Vantage Hospital. Prepare a statement of operations for the 12-month period ending September 30, 20X1.

Net Patient Revenues $840,000

Transfer to Parent Corporation $10,000

Net Assets Released from Restriction for Operations $120,000

Depreciation Expense $50,000

Labor Expense $230,000

Interest Expense $12,000

Supply Expense $88,000