Financial Statements

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder.

During January $20$Y$6,$ San Mateo Health Care entered into the following transactions:

January $1$ Received $$13,500$ from Glenn Company as rent for the use of a vacant office in SLO Health Care$$s building. Glenn paid the rent nine months in advance.

January $1$ Paid $$3,000$ for a one$-$year general insurance business policy.

January $6$ Purchased supplies of $$900$ on account.

January $9$ Collected $$16,000$ for services provided to customers on account.

January $11$ Paid creditors $$2,500$ on account.

January $18$ Invested an additional $$5,000$ in the business in exchange for common stock.

January $20$ Billed patients $$26,000$ for services provided on account.

January $25$ Received $$7,500$ for services provided to customers who paid cash.

January$30$ Paid expenses as follows: wages, $$15,500$ utilities, $$4,250$ rent on medical equipment, $$2,650$ interest, $$100$ and miscellaneous, $$1,500.$

January$30$ Paid dividends of $$4,000$ to stockholder $($Dr$.$ Denby$).$

Adjustment data for SLO Health Care Inc. for January are as follows:

Insurance expired, $$450.$

Supplies on hand on January $31,$ $$600.$

Depreciation on building, $$1,150.$

Unearned rent revenue earned, $$1,500.$

Wages owed employees but not paid, $$1,450.$

Services provided but not billed to patients, $$2,500.$

Presented in the integrated financial statement format are after$-$adjustment balances for January.

Instructions:

Prepare an income statement for January.

Prepare a statement of stockholders' equity for January.

Prepare a classified balance sheet for January. The note payable is due in ten years

Statement of Cash Flows

SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. During January $20$Y$6,$ SLO Health Care entered into the following transactions:

During January $20$Y$6,$ San Mateo Health Care entered into the following transactions:

Date Line Item Description

Jan. $1$ Received $$13,500$ from Glenn Company as rent for the use of a vacant office in SLO Health Care$$s building. Glenn paid the rent nine months in advance.

$1$ Paid $$3,000$ for a one$-$year general insurance business policy.

$6$ Purchased supplies of $$900$ on account.

$9$ Collected $$16,000$ for services provided to customers on account.

$11$ Paid creditors $$2,500$ on account.

$18$ Invested an additional $$5,000$ in the business in exchange for common stock.

$20$ Billed patients $$26,000$ for services provided on account.

$25$ Received $$7,500$ for services provided to customers who paid cash.

$30$ Paid expenses as follows: wages, $$15,500$ utilities, $$4,250$ rent on medical equipment, $$2,650$ interest, $$100$ and miscellaneous, $$1,500.$

$30$ Paid dividends of $$4,000$ to stockholder $($Dr$.$ Denby$).$

Adjustment data for SLO Health Care Inc. for January are as follows:

$1.$ Insurance expired, $$450.$

$2.$ Supplies on hand on January $31,$ $$600.$

$3.$ Depreciation on building, $$1,150.$

$4.$ Unearned rent revenue earned, $$1,500.$

$5.$ Wages owed employees but not paid, $$1,450.$

$6.$ Services provided but not billed to patients, $$2,500.$

Presented in the integrated financial statement format are after$-$adjustment balances for January.

Instructions:

Prepare a statement of cash flows for January. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. The Cash balance at the beginning of January $20$Y$6$ was $$10,000.$