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South Shore Medical Clinic
Trial Balance
December 31, 20X3
	Debit	Credit
Cash	$50,000
Accounts Receivable	55,000
Supplies	10,000
Inventory	40,000
Equipment	75,000
Building	150,000
Accounts Payable		$25,000
Current Portion - Long Term Debt		35,000
Long Term Debt, net of Current Portion		100,000
Owner's Equity		200,000
Service Fee Revenue		125,000
Salaries Expense	78,500
Rent Expense	24,000
Utilities Expense	2,500
Totals	$485,000	$485,000

Task #1: Using the Trial Balance, prepare an Income Statement.
South Shore Medical Clinic
Income Statement
For the year ending December 31, 20X3
Revenues:
Service Fee Revenue
Total Revenues
Expenses:
Salaries Expense
Rent Expense
Utilities Expense
Total Expenses
Income:
Net Income
Task #2: Using the Trial Balance, enter the appropriate amounts for each account. Classify each as an Asset, Liability, or Equity account then specify if they are current or non-current. Account Account Balance Type of Account Current/NonCurrent Cash Inventory Supplies Building Equipment Accounts Receivable Accounts Payable Current Portion - Long Term Debt Long Term Debt, net of Current Portion Owner's Equity Task #3: Once complete, prepare a Balance Sheet listing the accounts and account balances in the appropriate order. (Keep in mind that Net Income Increases the Owner's Equity Account). South Shore Medical Clinic Balance Sheet December 31, 20X3 ASSETS LIABILITIES & NET WORTH Current Assets Current Liabilities Cash Accounts Payable Accounts Receivable Current Portion - Long Term Debt Supplies Total Current Liabilities Inventory Total Current Assets Non-current Liabilities Long Term Debt, net of Current Portion Non-current Assets Total Non-Current Liabilities Equipment Building NET WORTH Total Non-current Assets Owner's Equity $200,000 TOTAL ASSETS TOTAL LIABILITIES & NET WORTH

Questions:

1. Briefly describe whether or not you think this company is profitable.

2. Is the company collecting enough in revenue to cover their expenses?

3. Comment on any suggestions you might have for the company's owners.

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