Question
The Childrens Medical Center (CMC) began operations on January 1 st 2020 with $10,000 in cash and $10,000 in net assets without donor restrictions. prepare
The Childrens Medical Center (CMC) began operations on January 1st 2020 with $10,000 in cash and $10,000 in net assets without donor restrictions.
prepare an activity statement for CMC for the fiscal year 2020.
During the year the following transactions occurred:
1) CMC received an unrestricted $10,000 cash donation from a benefactor on January 15, 2020.
2) CMC bought Equipment for $8,000 in cash. It has a useful life of five years, no residual value. CMC uses straight-line depreciation.
3) Supplies (inventory) are purchased for $5,000. The supplier sent CMC a bill.
4) Staff earned $40,000 in wages. Of that total, $36,000 was paid.
5) $3,000 of supplies were used.
6) Patient bills in the amount of $50,000 are sent to patients. CMC expects to collect 100% of the amount billed.
7) $30,000 of cash is received from patients to whom bills were sent in Transaction 6.
8) CMC pays its inventory supplier $3,000.
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