Reference no: EM131257482

List and record each transaction for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1. Then develop a balance sheet as of December 31, 20X1, and a statement of operations for the year ended December 31, 20X1. The clinic received a $10,000,000 unrestricted cash contribution from the community. (Hint: this transaction increases the unrestricted net assets account.) The clinic purchased $4,500,000 of equipment. The clinic paid cash for the equipment. The clinic borrowed $2,000,000 from the bank on a long-term basis. The clinic purchased $550,000 of supplies on credit. The clinic provided $8,400,000 of services on credit. In the provision of these services, the clinic used $420,000 of supplies. The clinic received $800,000 in advance to care for capitated patients. The clinic incurred $4,500,000 in labor expenses and paid cash for them. The clinic incurred $2,230,000 in general expenses and paid cash for them. The clinic received $6,000,000 from patients and their third parties in payment of outstanding accounts. The clinic met $440,000 of its obligation to capitated patients (transaction "The clinic received $800,000 in advance to care for capitated patients."). The clinic made a $400,000 cash payment on the long-term loan. The clinic also made a cash interest payment of $40,000. A donor made a temporarily restricted donation of $370,000, which is set aside in temporary investments. The clinic recognized $400,000 in depreciation for the year. The clinic estimated that $850,000 of patient accounts would not be received, and established a provision for bad debt.