Docs in a Box, Inc., an almost-full service urgent care center, began business on December 1. The following data summarize the events that took place during the first month of operations:

1. Two semi-retired physicians contributed a total of $65,000 in cash to help the organization get started. They each planned to work for the center 20 hours per week.
2. One of the physicians took out a $30,000 mortgage on her home to replace her investment in the center.
3. The center borrowed $15,000 on a one-year note, at an interest rate of 10%.
4. Equipment and furniture, with an estimated useful life of 12 years and no salvage value, were acquired and installed at a cost of $36,000, paid in cash.
5. $25,000 of medical supplies were acquired on account.
6. The center signed a rental agreement for $72,000 for the first year of operations, and made its first monthly rental payment, in cash, of $6,000.
7. Revenue for the month was 40,000. Of this, $8,000 was on account and the rest in cash.
8. Semimonthly wages of $4,000 were earned and paid in cash.
9. At mid-month, a new part-time employee was hired at an annual salary of $12,000.
10. $3,000 was received from patients in payment on their accounts.
11. The center paid 21,000 to its suppliers for medical supplies previously acquired.
12. The medical supply inventory at the end of the month was $15,000.
13. Semimonthly wages of $4,500 were earned as of December 31, but the next payday wasn't until January 2.
14. $1,250 of the loan principal was repaid. No interest payments were made.

Assignment

1. Prepare an income statement for December, and a balance sheet as of December 31.