ACCT 5346:ADVANCED ACCOUNTING>CUSTOM<
13th Edition
ISBN: 9781307158120
Author: HOYLE SCHAEFE
Publisher: MCG/CREATE
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Question
Chapter 18, Problem 41P
To determine
Record each of these transactions in appropriate
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. | | 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. | | 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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Chapter 18 Solutions
ACCT 5346:ADVANCED ACCOUNTING>CUSTOM<
Ch. 18 - Prob. 1QCh. 18 - Prob. 2QCh. 18 - Prob. 3QCh. 18 - What are temporarily restricted net assets?Ch. 18 - What are permanently restricted net assets?Ch. 18 - Prob. 6QCh. 18 - Prob. 7QCh. 18 - Prob. 8QCh. 18 - Prob. 9QCh. 18 - Prob. 10Q
Ch. 18 - Prob. 11QCh. 18 - Prob. 12QCh. 18 - Prob. 13QCh. 18 - Prob. 14QCh. 18 - Prob. 15QCh. 18 - When should membership dues be considered revenue...Ch. 18 - Prob. 17QCh. 18 - Prob. 18QCh. 18 - Prob. 19QCh. 18 - Prob. 20QCh. 18 - Prob. 21QCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - A donor gives Charity 1 50,000 in cash that it...Ch. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Prob. 10PCh. 18 - Prob. 11PCh. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Prob. 14PCh. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21PCh. 18 - Prob. 22PCh. 18 - Prob. 23PCh. 18 - Prob. 24PCh. 18 - Prob. 25PCh. 18 - Prob. 26PCh. 18 - Prob. 27PCh. 18 - Prob. 28PCh. 18 - Prob. 29PCh. 18 - Prob. 30PCh. 18 - Prob. 31PCh. 18 - Prob. 32PCh. 18 - Prob. 33PCh. 18 - Prob. 34PCh. 18 - Prob. 35PCh. 18 - Prob. 36PCh. 18 - Prob. 37PCh. 18 - Prob. 38PCh. 18 - Prob. 39PCh. 18 - A private not-for-profit entity is working to...Ch. 18 - Prob. 41PCh. 18 - The University of Danville is a private...Ch. 18 - Prob. 43PCh. 18 - Prob. 44PCh. 18 - Prob. 45PCh. 18 - Prob. 46PCh. 18 - Prob. 47PCh. 18 - Prob. 48PCh. 18 - Prob. 49PCh. 18 - At the beginning of Year 1, the entity above...Ch. 18 - Prob. 51PCh. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - Prob. 54PCh. 18 - Prob. 1DYSCh. 18 - Prob. 2DYSCh. 18 - Prob. 3DYSCh. 18 - Prob. 4DYSCh. 18 - Prob. 5DYSCh. 18 - Prob. 6DYS
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