Reference no: EM131949874

Prepare a balance sheet and Income statement, in proper form for ABC Corp

(All activity takes place within a one month period)

Corporation receives 1,000,000 from funding investors

1) ABC corp , purchases a building for $750000 and uses long term debt to finance

2) ABC purchases equipment for $100,000 and finances with a note payable

3) ABC bills patients for $150,000 for services rendered

4) ABC ourchases $150,000 of supplies on trade credit

5) ABC issues payroll for last week $50,000

6) ABC collects $75,000 of the amount billed under itme #3 above

7) ABC pays for $50,000 of the supplies purchased on the above trade credit

8) At the end of the month ABC owes their employees $35,000 of wages

9) ABC uses $25,000 of the supplies purchased above

10) ABC ends the month with $125,000 of charge incurred, but not yet billed

11) The building is depreciatedstraightline over a 30 year period

12) The ultrasound equipment is depreciated straightline over 5 years

13) The note payable has an interest rate of 6% and the longterm debt has an interest rate of 12%. No interest is actually paid, but it is accrued on the books at the endo fo the month

14) ABC pays a $5,000 dividend to the shareholders.