For your fictitious healthcare service, you will create abalance sheet and income statement based upon the followingfinancial transactions occurring during your start-up year:
6. May 1, 2020 through December 31, 2020: Youuse $30,000 in supplies to provide healthcare services to yourpatients each month. You record the use of supplies on the last dayof each month.
7. June 1, 2020: You pay your suppliers $80,000for supplies purchased on credit.
8. July 1, 2020: You receive payments fromhealth insurance companies totaling $250,000.
9. August 1, 2020:
a. You purchase $160,000 of supplies on credit for use in caringfor your patients.
b. You receive payments from health insurance companies totaling$320,000
10. September 1, 2020: You receive paymentsfrom health insurance companies totaling $225,000.
11. October 1, 2020: You receive payments fromhealth insurance companies totaling $310,000.
