For the income statement, it should be "For the year ending December 31, 2020" or "For the year ending June 30, 2020. You can also say For the fiscal year ended XXXX or for the fiscal year 2020. Whichever way you choose to do, clearly state the period each financial statement represent.

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.