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Newtown Urgent Care, Inc. a hypothetical start - up , opened for business on April 1 this year. Newtown Urgent Care is a walk -
Newtown Urgent Care, Inc. a hypothetical startup opened for business on April this year. Newtown Urgent Care is a walkin medical facility.
You are the founder and president. You have not yet hired an accountant, but your bank is asking for an income statement and balance sheet for the first month of operation.
Transactions:
You started your company with $ that you raised by selling stock in Newtown Urgent Care, Inc.. to your family and friends as well as an angel investor.
You purchased an Xray machine, an ultrasound scanner and some other major equipment for $ paying cash. You believe these devices will last five years before you replace them. At the end of the years, you think you can sell them for a total of $
Knowing that you would need additional funds, you took a $ loan at annual interest rate from the bank, using the equipment as collateral.
At the start of the month you spent $ on supplies used for treating patients, for which you were invoiced. This is one month of supplies.
A PR agency charges you $ for the promotion services they hope for more business as you grow You plan on paying the bill next month.
Rent for the space you have leased is $ a month, which you paid.
The first month business starts slow. You bill insurance companies and patients $
You pay your employees $ at the end of the month.
You receive payments of $ from insurance companies.
You pay the interest on the loan owed for the month.
You send payment of $ towards the supplies that you bought earlier in the month.
You record one month of depreciation on the equipment.
Assets Liabilities Equity
Cash Accounts
Receivable Supplies Equip Accum
Deprec. Notes
Payable Accts.
Payable Common
Stock Retained
Earnings Revenue Expense
Newtown Urgent Care, Inc.
Income Statement
Month ended April xx
Revenues $
Operating Expenses
Rent
Wages
Advertising and Promotion
Supplies
Depreciation
Total operating expenses $
EBIT Loss
Interest expense
Net Profit Loss $
Newtown Urgent Care, Inc.
Balance Sheet
April xx
ASSETS
Current Assets
Cash $
Accounts Receivable
Supplies inventory
Total Current Assets
Fixed Assets
Equipment
Less accumulated depreciation
Net Fixed Assets
Total Assets $
LIABILITIES
Current Liabilities
Accounts Payable
Total Current Liabilities
Long term Liabilities
Bank Loan Payable
Total Liabilities
$
STOCKHOLDERS EQUITY
Common Stock
Retained Earnings Loss
Total Stockholders Equity
Total Liabilities & Stockholders Equity $
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