Question

Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.) You may use either a Word document or an Excel spreadsheet to construct the balance sheet.

Account Balance
Gross plant & equipment $6,000,000
Accounts payable 130,000
Inventories 100,000
Other current liabilities 70,000
Net accounts receivable 650,000
Accrued expenses 100,000
Accumulated depreciation 200,000
Long-term debt 5,000,000
Cash 210,000

Answer 1

Answer: See explanation

Step-by-step explanation:

The balance sheet is illustrated below:

Currie Hospital Balance Sheet

ASSETS

Current Assets

Cash $210,000

Inventories $100,000

Accounts receivable, net $650,000

Total Current Assets $960,000

Gross plant & equipment $6,000,000

Less: Accumulated depreciation $200,000 5,800,000

Total Assets 6,760,000

Liabilities and net assets

Current liabilities

Accounts Payable $130,000

Accrued expenses and other liabilities $170,000

Total current liabilities $300,000

Long-term debt $5,000,000

Total Liabilities $5,300,000

Net assets

Unrestricted $1,460,000

Total net assets $1,460,000

Total liabilities and net assets $6,760,000