Prepare income statement and statement of retained earnings

Assignment Help Financial Accounting

Reference no: EM131862746

Instructions - Activity Instructions: Financial Statement Development

You are presented with the following information for Black Hawk Memorial Hospital, a for-profit hospital with a standard stockholder's equity structure, as outlined in the Lecture and Readings. Please answer each part as directed below. Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document in a bibliography using APA style.

Black Hawk Memorial Hospital 12/31/2003
Listing of accounts
Accounts payable	125,000
Accrued employee compensation	377,756
Additional paid-in capital	565,000
Cash	1,301,222
Common stock	1,265,000
Consulting services expense	126,300
Current maturities of long term debt	150,000
Depreciation expense	39,000
Dividends	?
Federal grants receivable	367,430
Inpatient Revenue	45,125,674
Inventories	393,050
Legal & Audit services	56,780
Long term capital lease obligation	321,000
Long term notes payable	458,764
Net patient receivables	3,945,123
Other operating revenue	7,800,126
Other Receivables	456,123
Other expenses	40,000
Outpatient Revenue	34,500,687
Prepaid expenses	723,564
Professional services	3,760,000
Property Plant and Equipment	24,561,879
Purchased services-expense	8,642,131
Rental expense	725,000
Repairs & Maintenance expense	1,654,200
Retained earnings-12/31/03	?
Retained eamings-12 /31/02	32,456,987
Salaries expense	65,126,279
Supplies expense	3,678,216
Travel & conference expense	212,531
Utilities expense	982,135
Table 10: Black Hawk Memorial Hospital Data

Part A - For each account stated above, classify it as an asset, liability, owner's equity item, revenue, or expense. In addition, describe which financial statement it belongs to in the worksheet presented below.

Black Hawk Memorial Hospital 12/31/03
Listing of accounts		Classification	Financial Statement
Accounts payable	125,000
Accnied employee compensation	377,756
Additional paid-in capital	565,000
Cash	1,801,222
Common stock	1 ,265,000
Consulting services expense	126,300
Current maturities of long term debt	150,000
Depreciation expense	39,000
Dividends
Federal Hants receivable	367,430
Inpatient Revenue	45,125,674
Inventories	398,050
Legal & Audit services	56,780
Long term capital lease obligation	321,000
Long term notes payable	458,764
Net patient receivables	3,945,123
Other operating revenue	7,800,126
Other Receivables	456,123
Other expenses	40,000
Outpatient Revenue	34,500,687
Prepaid expenses	723,564
Professional services	3,760,000
Property Plant and Equipment	24,561,879
Purchased services-expense	3,642,131
Rental expense	725,000
Repairs & Maintenance expense	1,654,200
Retained earnings 12/31/03	?
Retained eating's 12/31/02	32,456,987
Salaries expense	65,126,279
Supplies expense	3,678,216
Travel & conference expense	212,531
Utilities expense	982,135
Table 11 - Black Hawk Memorial Hospital Worksheet

Part B - First, prepare the following financial statements: Income Statement, Statement of Retained Earnings, and the Balance Sheet. Keep in mind the articulation principle and the accounting equation. Also, make sure that you are preparing a "classified" balance sheet. In order to complete all financial statements, you must calculate the dividends and retained earnings figures. Show your calculations.

Reference no: EM131862746

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