Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 16, Problem 17.7EP
To determine
Identify the correct option for the given statement.
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Prepare general journal form for the following transactions of Bothwell Regional Hospital, a nongovernmental not-for-profit hospital. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.)
For the month just ended, the hospital received in cash $8,000 from the hospital's gift shop sales and received donated medicines with a fair value of $47,000. These medicines are of the type the hospital normally would purchase.
The hospital's finance officer, in compliance with the directive of the governing board, invested $600,000 of operating cash in certificates of deposit to be held for future purchases of equipment.
New equipment costing $750,000 was purchased from money given to the hospital by a donor in a prior year to be held until needed for equipment purchases.
A federal grant was received in cash in the amount of $400,000 to be used for heart research. During the current year, only $50,000 was spent for this research…
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).
Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies.
Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses.
Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).
An unconditional contributionPage 687 of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer’s patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.
A total of $965,000 was received from…
Record the following transactions on the books of St. Marie's Hospital, a private not-for-profit hospital.
(a) The Hospital billed patients $692,000 for services rendered. Of this amount, 5% is expected to be uncollectible due to implicit price concessions.
Contractual adjustments with insurance companies are expected to total $103,000.
(b) The Hospital received $800,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable
within one year and 7% are expected to be uncollectible.
(c) Charity care in the amount of $41,000 (at standard charges) was performed on an indigent patient.
(d) The Hospital collected $550,900 for the services performed in (1) above. Actual contractual adjustments for these services amounted to $106,400
15,490 of receivables were identified as uncollectible and written off.
Chapter 16 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11QCh. 16 - Prob. 12CCh. 16 - Prob. 17.1EPCh. 16 - Prob. 17.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 17.4EPCh. 16 - Prob. 17.5EPCh. 16 - Prob. 17.6EPCh. 16 - Prob. 17.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 17.9EPCh. 16 - Prob. 17.10EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - The Kyle Sports Medicine facility is a...Ch. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EPCh. 16 - Prob. 24EPCh. 16 - Prob. 25EP
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