Calculate the amount of net assets on January

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Reference no: EM133048400

Question - 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.

Required -

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

2. Prepare a beginning balance sheet.

Reference no: EM133048400

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