Financial statements Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2. Instructions Prepare an income statement, statement of stockholders’ equity , and a classified balance sheet for January. The note payable is due in ten years.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 3, Problem 3.3P

Financial statements
Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2.
Instructions

Prepare an income statement, statement of stockholders’ equity, and a classified balance sheet for January. The note payable is due in ten years.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Need answer the accounting question please answer do fast and step by step calculation

Findout solution for this general account query.

Please need help with this general accounting question

Answer 2

Textbook Question

Chapter 3, Problem 3.3P

Financial statements
Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2.
Instructions

Prepare an income statement, statement of stockholders’ equity, and a classified balance sheet for January. The note payable is due in ten years.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 3, Problem 3.3P

Financial statements
Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2.
Instructions

Prepare an income statement, statement of stockholders’ equity, and a classified balance sheet for January. The note payable is due in ten years.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 3, Problem 3.3P

Financial statements
Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2.
Instructions

Prepare an income statement, statement of stockholders’ equity, and a classified balance sheet for January. The note payable is due in ten years.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

The income statement is a part of the financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.

The statement of stockholder's equity belongs to the balance sheet. It is a statement about owner's equity i.e. contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.

The balance sheet is a part of the financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.

To Prepare:

An income statement,statement of stockholder's equity,and balance sheet for the year ended January.

Answer 12

Answer to Problem 3.3P

The income statement so prepared provides a net income of $19,100 .The statement of stockholder's equity so prepared provides a closing balance of $308,600. The balance sheet so prepared provides a total of assets and liabilities of $370,000.

Answer 13

Explanation of Solution

S. M. Health Care

Income Statement

For the year endedJanuary

Particulars	($)	Amount ($)
Revenues
Fees earned	72,000
Income from rent	3,000
Total Revenue		75,000

Less: Expenses
Insurance Expense	900
Rent Expense	5,300
Supplies Expense	1,800
Interest Expense	200
Depreciation	2,300
Wages Expense	33,900
Miscellaneous Expense	11,500
Total Expenses		(55,900)
Net Income		19,100

S. M. Health Care

Statement of Stockholder's Equity

For the year endedJanuary

Particulars	Common Stock ($)	Retained Earnings ($)	Amount ($)
Opening Balance	50,000	237,500	287,500
Issues common stock	10,000		10,000
Net income		19,100	19,100
Dividend paid		(8,000)	(8,000)
Closing Balance	60,000	248,600	308,600

S. M. Health Care

Balance Sheet

For the year endedJanuary

Assets	($)	Amount ($)
Cash		37,000
Account receivable		69,500
Other assets		7,000
Property, plant, and equipment:
Building	150,000
Less: Accumulated depreciation block	(13,500)
	136,500
Land	120,000	256,500
Total Assets		370,000

Liabilities and Stockholder's equity
Liabilities:
Expenses payable		7,400
Unearned rent		24,000
Notes payable		30,000
Stockholder's equity:
Capital		308,600
Total liabilities and stockholder's equity		370,000

Answer 14

Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQ Ch. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ

Financial statements Data for San Mateo Health Care for January are provided in Problems 3-1 and 3-2. Instructions Prepare an income statement, statement of stockholders’ equity , and a classified balance sheet for January. The note payable is due in ten years.

Videos

Answer to Problem 3.3P

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions

Additional Business Textbook Solutions