What are the three categories of financial statements for a research paper?Financial Statements
SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder.
During January 20Y6, San Mateo Health Care entered into the following transactions:
January 1 Received $13,500 from Glenn Company as rent for the use of a vacant office in SLO Health Care’s building. Glenn paid the rent nine months in advance.
January 1 Paid $3,000 for a one-year general insurance business policy.
January 6 Purchased supplies of $900 on account.
January 9 Collected $16,000 for services provided to customers on account.
January 11 Paid creditors $2,500 on account.
January 18 Invested an additional $5,000 in the business in exchange for common stock.
January 20 Billed patients $26,000 for services provided on account.
January 25 Received $7,500 for services provided to customers who paid cash.
January30 Paid expenses as follows: wages, $15,500 utilities, $4,250 rent on medical equipment, $2,650 interest, $100 and miscellaneous, $1,500.
January30 Paid dividends of $4,000 to stockholder (Dr. Denby).
Adjustment data for SLO Health Care Inc. for January are as follows:
Insurance expired, $450.
Supplies on hand on January 31, $600.
Depreciation on building, $1,150.
Unearned rent revenue earned, $1,500.
Wages owed employees but not paid, $1,450.
Services provided but not billed to patients, $2,500.
Presented in the integrated financial statement format are after-adjustment balances for January.
Instructions:
Question Content Area
Prepare an income statement for January.
SLO HEALTH CARE INC.
Income Statement
For the Month Ended January 31, 20Y6
Line Item Description Amount Amount
Accounts payableFees earnedPrepaid insurance rent revenueRetained earningsFees earned
$
Fees earned
Operating expenses:
Accounts payableFees earnedPrepaid insurance retained earningsWages expense
$
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Accounts payableFees earnedLandRent revenueUtilities expense.
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CashFees earnedPrepaid insurance rent expenseRent revenue
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Accounts payableAccumulated depreciationBuildingDepreciation expenseFees earned
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Accounts payableAccounts receivablePrepaid insuranceSuppliesSupplies expense
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Fees earnedInsurance expensePrepaid insurance rent revenueWages payable
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Capital stock interest expenseLandPrepaid insurance rent revenue
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Accounts receivable accounts payableFees earnedMiscellaneous expense notes payable
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Total operating expenses
Total operating expenses
Operating incomeOperating loss
$
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Other revenue:
Insurance expenseInterest expenseMiscellaneous expenseRent expenseRent revenue
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Net incomeNet loss
$
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Question Content Area
Prepare a statement of stockholders’ equity for January. For those boxes in which no entry is required, leave the box blank.
SLO HEALTH CARE INC.
Statement of Stockholders’ Equity
For the Month Ended January 31, 20Y6
Line Item Description Common
Stock Retained
Earnings
Total
Balances, Jan. 1, 20Y6Balances, Jan. 31, 20Y6DividendsNet incomeNet loss
$
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$
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$
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Balances, Jan. 1, 20Y6Balances, Jan. 31, 20Y6Issued common stockNet incomeNet loss
– Select –
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Balances, Jan. 1, 20Y6Balances, Jan. 31, 20Y6DividendsNet incomeNet loss
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Balances, Jan. 1, 20Y6Bal. Balances, Jan. 31, 20Y6DividendsNet incomeNet loss
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Balances, Jan. 1, 20Y6Balances, Jan. 31, 20Y6DividendsNet incomeNet loss
$
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$
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$
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Feedback Area
Feedback
In the statement of stockholders’ equity, the balance of retained earnings is determined by using the equation:
Beginning Retained Earnings + Net Income – Dividends = Ending Retained Earnings
The balance of common stock is added to the balance of retained earnings to determine the total balance of stockholders’ equity.
Question Content Area
Prepare a classified balance sheet for January. The note payable is due in ten years.
SLO HEALTH CARE INC.
Balance Sheet
January 31, 20Y6
Line Item Description Amount Amount Amount
Assets
Current assets:
CashCommon stockFees earnedRental revenueRetained earnings
$
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Accounts payableAccounts receivableAccumulated depreciationLandNotes payable (due in ten years)
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Accounts payableInsurance expensePrepaid insuranceUnearned rentWages payable
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BuildingCommon stockNotes payable (due in ten years)SuppliesSupplies expense
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Total current assets $
Total current assets
Property, plant, and equipment:
Accounts payableAccounts receivableBuildingCashCommon stock
$
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Less depreciation expenseLess accumulated depreciationPlus accumulated depreciationPlus cashPlus notes payable (due in ten years)
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Subtotal $
Subtotal
Accounts payableCommon stockInterest expenseLandNotes payable (due in ten years)
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Total property, plant, and equipment
Total property, plant, and equipment
Total assets $
Total assets
Liabilities
Current liabilities:
Accounts payableAccounts receivableBuildingCommon stockNotes payable (due in ten years)
$
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Prepaid insuranceRental revenueRetained earningsSuppliesUnearned rent
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LandPrepaid insuranceSuppliesWages expenseWages payable
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Total current liabilities $
Total current liabilities
Long-term liabilities:
Accumulated depreciationCashLandNotes payable (due in ten years)Prepaid insurance
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Total liabilities $
Total liabilities
Stockholders’ Equity
Accounts payableAccounts receivableBuildingCommon stockLand
$
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Prepaid insuranceRetained earningsSuppliesUnearned rentWages payable
– Select –
Total stockholders’ equity
Total stockholders’ equity
Total liabilities and stockholders’ equity $
Total liabilities and stockholders’ equity
