Chapter 2 Basic Accounting Concepts 63statements. Such financial statements can easily be prepared from the integrated
financial statement framework shown in Exhibit 2.
The September financial statements for Family Health Care are illustrated in
Exhibit 4. The data for the statements were taken from Exhibit 2.Exhibit 4
Family Health Care
Financial Statements
for September
Net income for September $2,600
Less dividends 1,500
Retained earnings, September 30, 2007 $1,100Family Health Care, P.C.
Balance Sheet
September 30, 2007Assets
Cash $ 5,100
Land 12,000
Total assets $17,100Liabilities
Notes payable $10,000Stockholders’ Equity
Capital stock $6,000
Retained earnings 1,100 7,100
Total liabilities and stockholders’ equity $17,100Fees earned $5,500
Operating expenses:
Wages expense $1,125
Rent expense 950
Utilities expense 450
Interest expense 100
Miscellaneous expenses 275
Total operating expenses 2,900
Net income $2,600Family Health Care, P.C.
Income Statement
For the Month Ended September 30, 2007Family Health Care, P.C.
Retained Earnings Statement
For the Month Ended September 30, 2007