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.