Healthcare Hospital is an old hospital operating in private ownership. There are many government departments and corporate organisations which have contracted with the hospital for the discounted medical treatment of the discount given to employees of such organisations. However this facility is not available to outdoor patients or on employees. It is the policy of hospital to record total revenue on gross basis and then make adjustments of any diagnostic services. The following balances were extracted from its books on 31 December 20X7 Debit $ Credit 5 48 600 21 200 6 700 indoor patient revenue Outdoor patient revenue Revenue from diagnostic services Discount to corporate clients Salaries and wages Rent and repairs Advertising Electricity and telephone Cleaning expense Clinical expenses Surgical instruments at 1 January 20x7 Purchase of surgical instruments Bank balance Indoor patients revenue receivable Outdoor patients revenue receivable Accounts payable Medical and surgical equipment Provision for depreciation: medical and surgical equipment Furniture and fittings Provision for depreciation: furniture and fittings Office equipment Provision for depreciation office equipment Capital at 1 January 20X7 Drawings 2100 26 200 3 400 2 200 13 800 2700 3 100 8 600 2 500 3400 3 500 2 900 600 30 000 6 000 12 000 2400 15 000 5400 54 000 13 500 144 900 144 900 The following additional information is available CO) The value of surgical instruments as at 31 December 20X7 was $7 500 Furniture and fittings are depreciated @10% by using straight line method Both office equipment and medical & surgical equipment are depreciated @20% by using reducing balance method (iv) Outstanding electricity amounting to $400. Prepaid advertising $300 REQUIRED la) (b) Prepare an income Statement for the year ended 31 December 20x7 Prepare a Balance sheet as at 31 December 20x7