For your fictitious healthcare service, you will create a balance sheet and income statement based upon the following financial transactions occurring during your start-up year:

1. January 1, 2020: $1,000,000 is deposited by your health system into your entity account to finance the start-up of your operation.

2. February 1, 2020: You acquire equipment needed to provide services totaling $250,000. This equipment is acquired on a credit line with 0% interest. The equipment has a useful life of 10-years and a salvage value of $50,000. You use straight line depreciation.

3. March 1, 2020: You purchase $100,000 of supplies on credit for use in caring for your patients.

4. April 1, 2020: All of your budgeted staff members begin working. They are paid on a monthly basis, with the first payroll date of May 1, 2019. Each payroll date occurs on the 1st of each month.

5. May 1, 2020 through December 31, 2020: You begin accepting your first patients. You provide $300,000 in healthcare services for each month through the end of the calendar year. You invoice your patients' health insurance companies on the last day of each month.

6. May 1, 2020 through December 31, 2020: You use $30,000 in supplies to provide healthcare services to your patients each month. You record the use of supplies on the last day of each month.

7. June 1, 2020: You pay your suppliers $80,000 for supplies purchased on credit.

8. July 1, 2020: You receive payments from health insurance companies totaling $250,000.

9. August 1, 2020:

a. You purchase $160,000 of supplies on credit for use in caring for your patients.

b. You receive payments from health insurance companies totaling $320,000

10. September 1, 2020: You receive payments from health insurance companies totaling $225,000.

11. October 1, 2020: You receive payments from health insurance companies totaling $310,000.

12. November 1, 2020:

a.You receive payments from health insurance companies totaling $240,000.

b. You pay your suppliers $40,000 for supplies purchased on credit.

13. December 1, 2020: You receive payments from health insurance companies totaling $330,000.

14. December 15, 2020: You make a payment to your equipment financing company of $25,000.

15. December 31, 2020: You generate your year-end Balance Sheet and Income Statement