• List and record each transaction for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1. Then develop a balance sheet as of December 31, 20X1, and a statement of operations for the year ended December 31, 20X1.
  • The clinic received a $10,000,000 unrestricted cash contribution from the community. (Hint: this transaction increases the unrestricted net assets account.)
  • The clinic purchased $4,500,000 of equipment. The clinic paid cash for the equipment.
  • The clinic borrowed $2,000,000 from the bank on a long-term basis.
  • The clinic purchased $550,000 of supplies on credit.
  • The clinic provided $8,400,000 of services on credit.
  • In the provision of these services, the clinic used $420,000 of supplies.
  • The clinic received $800,000 in advance to care for capitated patients.
  • The clinic incurred $4,500,000 in labor expenses and paid cash for them.
  • The clinic incurred $2,230,000 in general expenses and paid cash for them.
  • The clinic received $6,000,000 from patients and their third parties in payment of outstanding accounts.
  • The clinic met $440,000 of its obligation to capitated patients (transaction "The clinic received $800,000 in advance to care for capitated patients.").
  • The clinic made a $400,000 cash payment on the long-term loan.
  • The clinic also made a cash interest payment of $40,000.
  • A donor made a temporarily restricted donation of $370,000, which is set aside in temporary investments.
  • The clinic recognized $400,000 in depreciation for the year.
  • The clinic estimated that $850,000 of patient accounts would not be received, and established a provision for bad debt.
• Statement of operations. The following is a list of account balances for Krakower Healthcare Services, Inc. on December 31, 20X1. Prepare a statement of operations as of December 31, 20X1. (Hint: when net assets are released from restriction, the restricted account is decreased, and the unrestricted account is increased. It is recognized under revenues, gains, and other support.)

  Givens
  Supply expense	$60,000
  Transfer to parent corporation	$18,000
  Provision for bad debt expense	$10,000
  Depreciation expense	$35,000
  Labor expense	$80,000
  Interest expense	$7,000
  Administrative expense	$50,000
  Net patient service revenues	$220,000
  Net assets released from restriction	$30,000

• Statement of cash flows. The following is a list of account balances for Hover Hospital on June 30, 20X1. Prepare a statement of cash flows as of June 30, 20X1.

  Givens
  Transfer to parent corporation	$40,000
  Proceeds from sale of fixed equipment	$2,290,000
  Principal payment on bonds payable	$780,000
  Purchase of fixed equipment	$5,300,000
  Beginning of cash balance	$6,500,000
  Cash from operating activities	$3,900,000
  Principal payment on notes payable	$6,500