Each of the items above is described in order to understand its nature thus identify the correct statement in which it should be posted as indicated. The goal is to ensure each balance is accurately and correctly posted in order to capture the true and fair value of the entity. The three financial statement created are summarized below.
The data shows that the medical facility is operating at a surplus since the amount of the unrestricted assets increases during this year. The surplus is fundamental in improving the liquidity of the facility thus guaranteeing on its continuity. In addition, the value of temporarily restricted net assets declined. As such, more assets were available to be utilized as the firm deems fit in line with the mandate and responsibilities of the medical facility at year end (Overkamp, n.d.). In other words, it is evident that the financial liquidity of the medical firm increased this year as confirmed by a current ratio which is greater than one.
Considering the cash flow statement, the net assets in the balance sheet must be equal to the value of net asset obtained from the cash flow (Overkamp, n.d.). As such, having posted all the transaction to their respective statements, it is evident that the medical facility must have a permanently restricted net assets class worth $8,000 for the total net assets in the balance sheet and the cash flow statement to agree. The permanently restricted assets class means that the firm cannot utilize the funds.
The cash flow statement also reveals that the firm did not receive any unrestricted contribution in the year since all the medical facility revenues are generated from the operations of the facility.
References
Albrecht, W. S., & Skousen, K. F. (2002). Financial accounting. Cincinnati, OH: South-Western.
Bragg, S. (n.d.). What is the difference between bad debt and doubtful debt? - Questions & Answers - AccountingTools. Retrieved July 13, 2016, from http://www.accountingtools.com/questions-and-answers/what-is-the-difference-between-bad-debt-and-doubtful-debt.html
Overkamp, H. (n.d.). Nonprofit Accounting Explanation | AccountingCoach. Retrieved July 13, 2016, from http://www.accountingcoach.com/nonprofit-accounting/explanation/2
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