Prepare a balance sheet and Income statement, in proper form for ABC Corp
(All activity takes place within a one month period)
Corporation receives 1,000,000 from funding investors
1) ABC corp , purchases a building for $750000 and uses long term debt to finance
2) ABC purchases equipment for $100,000 and finances with a note payable
3) ABC bills patients for $150,000 for services rendered
4) ABC ourchases $150,000 of supplies on trade credit
5) ABC issues payroll for last week $50,000
6) ABC collects $75,000 of the amount billed under itme #3 above
7) ABC pays for $50,000 of the supplies purchased on the above trade credit
8) At the end of the month ABC owes their employees $35,000 of wages
9) ABC uses $25,000 of the supplies purchased above
10) ABC ends the month with $125,000 of charge incurred, but not yet billed
11) The building is depreciatedstraightline over a 30 year period
12) The ultrasound equipment is depreciated straightline over 5 years
13) The note payable has an interest rate of 6% and the longterm debt has an interest rate of 12%. No interest is actually paid, but it is accrued on the books at the endo fo the month
14) ABC pays a $5,000 dividend to the shareholders.