the book I use for study:Horngren's Cost Accounting: A Managerial Emphasis, 16th edition, Global Edition. Questions in image RequestCompute: direct method and step method Mitra Permata Hati Clinic is a non-profit organization, building clinics for childrenfrom underprivileged families. This institution receives donations from the communityand local government for its operations. The local government asked the clinic manager tomake a financial report regarding the funds received from the local government budget.Available data:DESCRIPTIONFOH CostSquare feetEmployeesOperating DepartmentMedicalDental$ 200,000$80,0008,0001,00053Support DepartmentAdministration$ 80,000900Housekeeping$ 40,0001002The Administration Department will be allocated based on the number of employees whilethe Housekeeping Department will be allocated based on square feet. It is assumed thatthe Medical Department treats 12,000 patients and the Dental Department treats 10,000patients.

Meaning of direct cost allocation method In this method amount of service department are transferred…

Answered: Compute: direct method and step method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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. Santa Maria Hospital is a non-profit organization located in Bulacan. Given below are the transactions andevents of its General Fund for October 20X1:• Gross patient service revenues of P80,000 were billed to patients. Indigent charity care amounted toP4,000, of which P2,500 was a receivable from Social Medicare of P6,000 and doubtful accounts ofP8,000.• Contributed services approximating P10,000 at going salary rates were received from volunteer nurses.Meals costing P200 were served to the volunteer nurses at no charge by the Santa Maria Hospitalcafeteria.• New unrestricted pledges due in three (3) months, totaling P5,000, were received from various donors.Collections on pledges amounted to P3,500, and the provision for doubtful pledges for the month wasP800.• The amount of P3,000 received from the Restricted Fund was expended for new surgical equipment,as authorized by the donor. Required: Prepare the journal entries for the transactions of Santa Maria Hospital for October.
Santa Maria Hospital is a non-profit organization located in Bulacan. Given below are the transactions and events of its General Fund for October 20X1: • Gross patient service revenues of P80,000 were billed to patients. Indigent charity care amounted to P4,000, of which P2,500 was a receivable from Social Medicare of P6,000 and doubtful accounts of P8,000. Contributed services approximating P10,000 at going salary rates were received from volunteer nurses. Meals costing P200 were served to the volunteer nurses at no charge by the Santa Maria Hospital cafeteria. New unrestricted pledges due in three (3) months, totaling P5,000, were received from various donors. Collections on pledges amounted to P3,500, and the provision for doubtful pledges for the month was P800. The amount of P3,000 received from the Restricted Fund was expended for new surgical equipment, as authorized by the donor. Required: Prepare the journal entries for the transactions of Santa Maria Hospital for October.
County Community Clinic is made up of 5 departments: 3 Service Line (revenue generating) departments - Adult Health, Child Health and Mental Health. They also have 2 support departments - Administration and Finance. The Direct Costs for the 5 Departments are: Administration Finance Adult Health Child Health Mental Health Finance Adult Health Child Health Here is some other data on the County Community Clinic Departments Department FTE Visits Administration 3 2 $400,000 $100,000 10 8 Behavioral Health 2 $1,000,000 $400,000 $100,000 10,000 4,000 1,000 Revenue $3,000,000 $1,000,000 $200,000
A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Choose the correct.a. Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500 increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.
A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? Choose the correct.a. $50,000b. $80,000c. $130,000d. $280,000
Cancer Educators, a not-for-profit organization, incurred costs of $20,000 when it combined program functions with fund-raising functions. Which of the following cost allocations might Cancer report in its statement of activities? A.) Program $0, Fund Raising $16,000, and General $4,000 B.) Program $0, Fund Raising $0, and General $20,000 C.) Program $16,000, Fund Raising $2,000, and General $2,000 D.) Program $10,000, Fund Raising $10,000, and General $0
Ishak Center for Families, a nonprofit organization, receives $300,000 from a donor who requires that the Center raise $300,000 in matching funds, or the Center will have to return the $300,000. What journal entry would the Center record upon receipt of the gift? Debit cash $150,000; credit deferred revenue $300,000 Debit cash $300,000; credit contribution revenue with donor restrictions $300,000 Debit cash $300,000; credit contribution revenue without donor restrictions $300,000 No entry would be recorded
A nongovernmental not-for-profit animal shelter receives contributed services from the following individuals valued at their normal billing rate: Board members volunteer to prepare books for audit 4,500 Registered nurse volunteers as receptionist 3,000 Teacher provides volunteer dog walking 2,000 What amount should the shelter record as contribution revenue? A.) $7,500 B.) $4,500 C.) $6,500 D.) $9,500
Dee City’s community hospital, which uses enterprise fund reporting and chooses to follow FASB guidelines, normally includes proceeds from sale of cafeteria meals ina. patient service revenues.b. other operating revenues.c. ancillary service revenues.d. deductions from dietary service expenses.
You conducted an outreach activity to help the needy in your community and have solicited 952,000.00. You wanted to propose a plan on how o equally divide the money and the possible relief goods that will be included. Ifyou will make a proposal what plan will you do? Show your plan by filling up the form below. OUTREACH PROPOSAL Total amount Solicited: Rational Function Model Possible number of beneficiaries, amount allocated. and relief included. Option 1 Option 2 Option 3 Number of Beneficiaries Amount Allocated per beneficiary Relief goods included and breakdown Cost of each goods Categories Budgeting Excellent (3) Excellent Fair (2) Poor (1) Some understanding Little in in creating a plan for understanding to no understanding creating a plan for spending the money creating a plan for spending the money The goal set achievable in spending the money Planning is The goal set is hard The goal set is not and to achieve achievable and not realistic realistic Accuracy of Solution The…
1. A not-for-profit hospital performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work. Additionally, officials expect another $94,000 to be bad debts. What should the hospital report as net patient service revenues? Select one: a.$906,000 b.$1,000,000 c.$706,000 d.$800,000 2. In the accounting for health care providers, what are third-party payors? Select one: a.Friends and relatives who pay the medical costs of a patient. b.Doctors who reduce fees for indigent patients. c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States. d.Charities that supply medicines to hospitals and other health care providers. 3.What is a contractual adjustment? Select one: a.A year-end journal entry to recognize all of a health care entity's remaining receivables. b.An increase in a patient's…
Presented below is a partially completed Statement of Activities for a homeless shelter. Complete the Statement of Activities by filling in any missing amounts as needed. Revenues Contribution revenues Net assets released from restrictions Total revenues CENTERVILLE AREA HOMELESS SHELTER Statement of Activities For the Year Ended December 31, 2020 Expenses Temporary shelter program Self-sufficiency program Fund raising Administration Total expenses Increase in net assets Net assets January 1 Net assets December 31 Net Assets without Donor Restrictions $ 82,000 19,500 101,500 Net Assets with Donor Restrictions $ (26,000) 26,230 14,250 40,480 Total $ 1,578,170 0 1,578,170 1,025,000 362,600 7,600 74,740 1,469,940 108,230 33,750 $ 141,980

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