P3-3 Financial statements

Data for San Mateo Health Care for January are provided in problem 3-1 and 3-2.

Instructions

Prepare an income statement, statement of stockholders equity, and a classified balance sheet. The note payable is due in ten years.

Obj. 2 P3-1 Accrual basis accounting San Mateo Health Care Inc. is owned and operated by Rachel Fields, the sole stockholder. During January 20Y6, San Mateo Health Care entered into the following transactions: Jan. 1 Received $27,000 from Hillard Company as rent for the use of a vacant office in San Mateo Health Care's building. Hillard paid the rent nine months in advance 1 Paid $6,000 for a one-year general insurance business policy 6 Purchased supplies of $1,800 on account. 9 Collected $32,000 for services provided to customers on account. 11 Paid creditors $5,000 on account. 18 Invested an additional $10,000 in the business in exchange for common stock. 20 Billed patients $52,000 for services provided on account. 25 Received $15,000 for services provided to customers who paid cash. 30 Paid expenses as follows: wages, $31,000; utilities, $8,500; rent on medical equip- ment, $5,300; interest, $200; and miscellaneous, $3,000. Paid dividends of $8,000 to stockholder (Dr. Fields). 30 Instructions Analyze and record the January transactions for San Mateo Health Care Inc., using the integrated financial statement framework. Record each transaction by date, and show the balance for each item after each transaction. The January 1, 20Y6, balances for the balance sheet are shown below. + Stockholders' Equity Accts. Un. Wages Notes Common Retained Cash + Rec. +Ins. + Supp.+Building- Depr. + Land Pay. +Rev.+ Pay.+ Pay. Stock Earnings Assets Liabilities Acc. Accts. Pre. 0 30,000 50,000 237,500 Bal, Jan.1 20,000 44,500 700 1,200 150,000 (11.200) 120,000 7,700 o P3-2 Adjustment process Adjustment data for San Mateo Health Care Inc. for January are as follows: 1. Insurance expired, $900 2. Supplies on hand on January 31, $1,200. 3. Depreciation on building, $2,300. 4. Unearned rent revenue earned, $3,000. 5. Wages owed employees but not paid, $2,900. 6. Services provided but not billed to patients, $5,000. Instructions Based on the transactions recorded in January for Problem January using the integrated financial statement framework. P3-3 Financial statements Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2. Instructions Prepare an income statement, statement of stockholders' equity, and a classified balance sheet for January. The note payable is due in ten years