Question
Oak Street Clinic is a not-for-profit health care organization. It began the year 2015 with the following account balances: Cash $ 70,000 Accounts receivable $245,000
Oak Street Clinic is a not-for-profit health care organization. It began the year 2015 with the following account balances: Cash $ 70,000 Accounts receivable $245,000 Bad debt allowance $18,000 Inventory $24,000 Plant and equipment $1,500,000 Accumulated depreciation $300,000 Accounts payable (AP) $21,000 Notes payable (NP) $500,000 Net assets (equity) $1,000,000 During the year 2015, it recorded the following financial transactions: Provided patient care services on credit $1,700,000 Purchased medical supplies on credit (AP) $12,000 Annual depreciation expense on equipment $150,000 Received a bank loan (NP) $250,000 Received payment from 3rd party for $1,124,000 Patient care services already provided (AR) Estimated bad debt for 2015 $44,000 Made installment payment on bank loan (NP) $75,000 Used medical supplies to provide patient services $10,000 Based on this information, construct the Clinics end of year 2015 balance sheet.
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