Instructions - Activity Instructions: Financial Statement Development
You are presented with the following information for Black Hawk Memorial Hospital, a for-profit hospital with a standard stockholder's equity structure, as outlined in the Lecture and Readings. Please answer each part as directed below. Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document in a bibliography using APA style.
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Black Hawk Memorial Hospital 12/31/2003
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Listing of accounts
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Accounts payable
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125,000
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Accrued employee compensation
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377,756
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Additional paid-in capital
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565,000
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Cash
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1,301,222
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Common stock
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1,265,000
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Consulting services expense
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126,300
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Current maturities of long term debt
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150,000
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Depreciation expense
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39,000
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Dividends
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?
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Federal grants receivable
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367,430
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Inpatient Revenue
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45,125,674
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Inventories
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393,050
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Legal & Audit services
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56,780
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Long term capital lease obligation
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321,000
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Long term notes payable
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458,764
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Net patient receivables
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3,945,123
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Other operating revenue
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7,800,126
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Other Receivables
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456,123
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Other expenses
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40,000
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Outpatient Revenue
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34,500,687
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Prepaid expenses
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723,564
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Professional services
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3,760,000
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Property Plant and Equipment
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24,561,879
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Purchased services-expense
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8,642,131
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Rental expense
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725,000
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Repairs & Maintenance expense
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1,654,200
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Retained earnings-12/31/03
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?
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Retained eamings-12 /31/02
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32,456,987
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Salaries expense
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65,126,279
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Supplies expense
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3,678,216
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Travel & conference expense
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212,531
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Utilities expense
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982,135
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Table 10: Black Hawk Memorial Hospital Data
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Part A - For each account stated above, classify it as an asset, liability, owner's equity item, revenue, or expense. In addition, describe which financial statement it belongs to in the worksheet presented below.
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Black Hawk Memorial Hospital 12/31/03
|
|
Listing of accounts
|
|
Classification
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Financial Statement
|
|
Accounts payable
|
125,000
|
|
|
|
Accnied employee compensation
|
377,756
|
|
|
|
Additional paid-in capital
|
565,000
|
|
|
|
Cash
|
1,801,222
|
|
|
|
Common stock
|
1 ,265,000
|
|
|
|
Consulting services expense
|
126,300
|
|
|
|
Current maturities of long term debt
|
150,000
|
|
|
|
Depreciation expense
|
39,000
|
|
|
|
Dividends
|
|
|
|
|
Federal Hants receivable
|
367,430
|
|
|
|
Inpatient Revenue
|
45,125,674
|
|
|
|
Inventories
|
398,050
|
|
|
|
Legal & Audit services
|
56,780
|
|
|
|
Long term capital lease obligation
|
321,000
|
|
|
|
Long term notes payable
|
458,764
|
|
|
|
Net patient receivables
|
3,945,123
|
|
|
|
Other operating revenue
|
7,800,126
|
|
|
|
Other Receivables
|
456,123
|
|
|
|
Other expenses
|
40,000
|
|
|
|
Outpatient Revenue
|
34,500,687
|
|
|
|
Prepaid expenses
|
723,564
|
|
|
|
Professional services
|
3,760,000
|
|
|
|
Property Plant and Equipment
|
24,561,879
|
|
|
|
Purchased services-expense
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3,642,131
|
|
|
|
Rental expense
|
725,000
|
|
|
|
Repairs & Maintenance expense
|
1,654,200
|
|
|
|
Retained earnings 12/31/03
|
?
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|
|
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Retained eating's 12/31/02
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32,456,987
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|
|
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Salaries expense
|
65,126,279
|
|
|
|
Supplies expense
|
3,678,216
|
|
|
|
Travel & conference expense
|
212,531
|
|
|
|
Utilities expense
|
982,135
|
|
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| Table 11 - Black Hawk Memorial Hospital Worksheet |
Part B - First, prepare the following financial statements: Income Statement, Statement of Retained Earnings, and the Balance Sheet. Keep in mind the articulation principle and the accounting equation. Also, make sure that you are preparing a "classified" balance sheet. In order to complete all financial statements, you must calculate the dividends and retained earnings figures. Show your calculations.