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Problem - In mid-August Dr. Saunders asked an accountant evaluate her financial statements. The accountant learned that DSAC had billed clients an additional $6,500 for care delivered in July but did not receive payments until August. DSAC also purchased and used an additional $500 of drugs and medical supplies in July but did not pay for them until August. The accountant estimated the instruments, furniture and equipment would last about five years and decided to depreciate those assets over a 60-month period using straight-line depreciation with no salvage value.
Required -
1. Record the additional activity and a revised income statement for July 2018 and a revised balance sheet as of July 31, 2018.
2. Re-evaluate whether DSAC was successful during its first month of operation.
Financial Statement Analysis and Preparation
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