Reference no: EM132954172

Good Care Community Clinic (Goodville, Texas), a not-for-profit entity, was founded in 1992 with a calendar year fiscal year end. It began operations on January 1, 2016 with balances that included:

Cash $45,000
Accounts Receivable $23,000
Allowance for doubtful account $3,345
Inventory $5,440
Prepaid rent $4,500
Equipment $1,550,000
Accumulated depreciation $560,000
Accounts payable $23,555
Notes payable $155,895

During the year, Good Care recorded the following transactions:

1. Patient revenue was $1,500,000
2. Inventory worth $5,650 was purchased on credit.
3. Salaries earned were $565,000
4. Salaries paid were $495,895
5. Depreciation of $32,050 was recorded
6. They received a long-term loan of $240,000 in December.
7. They prepaid rent of $56,665
8. Patients paid $995,000 of the amount they owed.
9. $35,000 of patient revenue was deemed to be uncollectible.
10. Paid $15,550 on the long-term loan.
11. Recognized $44,750 rent for the year from physician office rentals.
12. Recognized that $12,980 of the loan is due next year.

Question 1: Calculate the amount of net assets on January 1.

Question 2: Prepare a beginning balance sheet.