Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

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Answer 1

Question

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

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Answer 2

Question

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

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Answer 3

Question

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

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Answer 4

Question

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

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Answer 5

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

Answer 6

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000

Table: (2)

Answer 7

Chapter 18, Problem 41P

To determine

Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.

Answer 8

Expert Solution & Answer

Explanation of Solution

The journal entries for the given transactions are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Investments-Internally Restricted		160,000
	Cash			160,000
	(being use of funds to be transferred to future)

b.	Cash		80,000
	Permanently Restricted Assets			80,000
	(being donation received by the organization)

c.	Inventory of Medicines		25,000
	Cash			25,000
	(being amount received in previous year recorded and expended in current period)

d.	Accounts receivables-Patients		120,000
	Accounts receivables-Third party payers		480,000
	Patient Service Revenue			600,000
	(being amount charged to patients to be covered by third-parties)

e.	Depreciation expense		38,000
	Accumulated Depreciation			38,000
	(being depreciation expense recorded)

f.	Cash		15,000
	Interest Revenue-Unrestricted Net Assets			15,000
	(being interest income recorded)

g.	Bad debts		20,000
	Allowance for Uncollectible Accounts			20,000
	(being uncollectible debtors recorded)

	Contractual adjustment		30,000
	Allowance for reduced charges			30,000
	(being contractual adjustment reduced)

h.	Supplies		25,000
	Inventory of Medicines			25,000
	(being inventory recorded as expense)

i.	Cash
	Investments-Internally Restricted
	Unrestricted Net assets
	(being investments sold)

	Equipment		212,000
	Cash			212,000
	(being equipment purchased)

	Temporarily Restricted Net Assets		25,000
	Unrestricted Net assets			25,000
	(being assets re-classified)

j.	Cash		12,600
	Present Value of Pledges Receivable		98,000
	Allowance for Uncollectible Pledges			9,000
	Contributed support-Unrestricted Net Assets			12,600
	Contributed support- Temporarily restricted Net Assets			89,000

Table: (1)

The schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets is as follows:

	Chang in Net Assets	Unrestricted Net Assets	Temporarily restricted net assets	Permanently restricted net assets
a.	No change	$0	$0	$0
b.	Donation			$80,000
c.	Stipulation Met-Re-classification	$25,000	($25,000)
d.	Patient services	$600,000
e.	Depreciation	($38,000)
f.	Interests	$15,000
g.	Bad Debts	($20,000)
	Contractual adjustments	($30,000)
h.	Supplies expense	($25,000)
i.	Gain from Investments	$12,000
	Stipulation Met-Re-classification	$25,000	($25,000)
j.	Pledges	$12,600	$89,000
	Chang in Net Assets	$576,600	$39,000	$80,000