Statement preparation
The following information is taken from the accounting records of Grimball Cardiology at the close of business on December 31, 19X1:
Accounts payable |
14,700 |
Surgery revenue |
175,000 |
Surgical expenses |
80,000 |
Cash |
60,000 |
Surgical equipment |
37,000 |
Office Equipment |
118,000 |
Salaries expense |
30,000 |
Rent expense |
15,000 |
Accounts receivable |
135,000 |
Loan payable |
10,300 |
Utilities expense |
5,000 |
All equipment was acquired just prior to year-end. Conversations with the practice’s bookkeeper revealed the data that follow.
Rose Grimball, capital (January 1, 19X1) |
300,000 |
19X1 owner investments |
2,000 |
19X1 owner withdrawals |
22,000 |
Instructions
a. Prepare the income statement for Grimball Cardiology in good form.
b. Prepare a statement of owner’s equity in good form.
c. Prepare Grimball’s balance sheet in good form.