Prepare a balance sheet and income statement in proper form

Prepare a balance sheet and income statement in proper form, for XYC Corp. No balance sheet was provided. Need Assets, Liabilities, and Stockholder equity. Each individual item from the assignment must be shown individually on the balance sheet. Question was previously answered and did not reflect this*

Health Care Finance Prepare a Balance Sheet and Income Statement, in proper form, for XYC Corp (All Activity takes place within a one month period) Corporation receives $1,000,000 from founding investors. 1) XYC Corp. purchases a building for $750,000 and uses long term debt to finance. 2) XYC purchases equipment for $100,000 and finances with a note payable. 3) XYC bills patients for $150,000 for services rendered. 4) XYC purchases $150,000 of supplies on trade credit. 5) XYC issues payroll for last week: $50,000 6) XYC collects $75,000 of the amount billed under #3 above. 7) XYC pays for $50,000 of the supplies purchased above on trade credit. 8) At the end of the month XYC owes their employees $35,000 of wages. 9) XYC uses $25,000 of the supplies purchased above. 10) XYC ends the month with $125,000 of charges incurred, but not yet billed. 11) The building is depreciated straightline over a 30 year period. 12) The Ultrasound equipment is depreciated straighline over 5 years. 13) The note payable has an interest rate of 6% and the long term debt has an interest rate of 12%. No interest is actually paid, but it is accrued on the books at month end. 14) XYC pays a $5,000 dividend to the shareholders

Solution

NOTE -

1. Calculation of cash balance = 10,00000 + 75000 - 50000 - 50000 + 35000 - 5000

                                                = 1005000 $

2. Interest payable on loan = 750000 * 12 % * 1/12

                             = 7500 $

Interest Payable on Notes = 100000 * 6 % * 1/12

                                              = 500 $

3. Closing stock = 150000- 25000

                           = 125000 $

Income Statement
Item	Amount
Revenue	150000
Total A	150000
Less COGS and operating expense
Cost of Goods sold	25000
Depreciation on building	2083.3
Depreciation on Equipment	1666.7
Interest on Long term debt	7500
Interest on Notes payable	500
Expense incurred not billed	125000
Payroll expense	50000
Total B	211750
Net profit (A-B)	(61750)