inancial Management in Health Administration

HLTH 5050

Fill in the missing information in Financial Statements

Breakfront Healthcare, Inc. had the following assets at the beginning of the accounting period (January 1, 2016): Cash- $2,250, Accounts Receivable- $8,330, Certificate of Deposit- $5,000, and Land - $15,000. The beginning balances in the liability accounts were Accounts Payable - $3,200 and Notes Payable - $10,000. There was a $13,000 balance in contributed capital at the beginning of the accounting period. During the accounting period, there was service revenue on account of $22,000. The ending balance in the accounts receivable account was $5,130. Operating expenses on account amounted to $16,000. There was $14,500 paid on account payable. In addition, there was $250 of accrued interest revenue and $900 of accrued interest expense as of the end of the accounting period (December 31, 2016). Finally, a $2,000 cash distribution was made to the owners.

(Hint: It may be helpful to record the events under an accounting equation before you attempt to satisfy the requirements.)

C. balance sheet, and statement of cash flows as of December 31, 2016.

1. Determine the interest rate earned on the certificate of deposit.
2. Determine the interest rate paid on the note payable.