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.)

Question

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

Currie Hospital
Balance Sheet
As of December 31, 2013

Assets
Current Assets:
Cash $210,000
Net Accounts Receivable $650,000
Inventories $100,000
Total Current Assets $960,000

Property and Equipment:
Gross Plant & Equipment $6,000,000
Less: Accumulated Depreciation $200,000
Net Property and Equipment $5,800,000

Total Assets $6,760,000

Liabilities and Net Assets
Current Liabilities:
Accounts Payable $130,000
Accrued Expenses $100,000
Other Current Liabilities $70,000
Total Current Liabilities $300,000

Long-Term Debt $5,000,000

Total Liabilities $5,300,000

Net Assets:
Unrestricted Net Assets $1,460,000

Total Liabilities and Net Assets $6,760,000