Prepare a balance sheet

San Juan Health Services, Inc.

Balance Sheet

December 31, 2018

Assets

Cash ................................................................................ $ 22,100

Account Receivable......................................................... 27,000

Inventory ......................................................................... 13,500

Supplies........................................................................... 600

Total Assets..................................................................... $63,200

Liabilities and Stockholders Equity

Liabilities:

Account Payable ......................................................... 17,000

Salaries Payable ............................................................. 3,500

Income Taxes payable .................................................... 3,200

Total Liabilities................................................................. $23,700

Stockholders Equity:

Capital Stock (10, shares outstanding) .......................... $20,000

Retained earnings ........................................................... 19,500

Total Stockholders equity ............................................... $39,500

Totals Liabilities and Stockholders equity....................... $63,200

,

Integrated Health Services, Inc.

Income Statements

For the Year Ended December 31, 2018

Sales revenues.. $143,000

Rent revenues$4,000

Total revenues $147,000

Less cost of goods sold 85,000

Gross margin. $62,000

Less operating expenses:

Supplies expense $1,200

Salaries expense. 31,000

Miscellaneous expense.6,400 $38,600

Income before taxes $23,400

Less income taxes. 8,190

Net Income $15,210

Earnings per share ($15,210 / 10,000 shares) $1.52

Integrated Health Services, Inc.

Post-Closing Trial Balance

December 31, 2018

Debito Crdito

Cash..$22,100

Account Receivable27,000

Inventory.13,500

Supplies...600

Account Payable $17,000

Salaries Payable 3,500

Income Taxes Payable. 3,200

Capital Stock. 20,000

Retained Earnings 19,500

Totals $63,200 $63,200

The following information summarizes the business activity for the year, 2019.

a. Issued 6,000 additional shares capital stock for $30,000 cash.

b. Borrowed $10,000 on January 2, 2018, from Metropolis Bank as a long-term loan. Interest for the year is $700, payable on January 2, 2019.

c. Paid $5, 100 cash on September 1 to lease a truck for six months rent.

d. Received $1,800 on November 1 from a tenant for six months rent.

e. Paid $900 on December 1 for a one-year insurance policy.

f. Purchased $250 of supplies for cash.

g. Purchased inventory for $80,000 on account.

h. Sold inventory for $105,000 on account; cost of the merchandise sold was $60,000.

i. Collected $95,000 cash from customers accounts receivable

j. Paid $65,000 cash for inventories purchased during the year.

k. Paid $34,000 for sales reps salaries, including $3,500 owed at the beginning of 2019.

l. No dividends were paid during the year.

m. The income taxes payable for 2019 were paid.

n. For adjusting entries, all prepaid expenses are initially recorded as assets, and all unearned revenues are initially recorded as liabilities.

o. At year-end, $400 worth of supplies are on hand.

p. At year-end, an additional $4,000 of sales salaries are owed, but have not yet been paid.

q. Income tax expense is based on a 35% corporate tax rate.