Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
White Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital’s calendar year ending December 31, 2019
journal entries to record the transactions listed in 1 through 14. below
Third-parties payers and direct-pay patients were billed $6,500,000 at the hospital's established billing rates
The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients
The hospital estimated contractual adjustments for the year of $1,600,000
The hospital originally estimated uncollectible amounts from direct-pay patients to be $250,000 (recall that original estimated uncollectible amounts reduce revenue; only estimates specific to an individual patient are reported as bad debt expense).
The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000
The hospital received payments from third-party payers…
Transactions (a) through (e) took place in Stoney Heights Private Hospital during the year ending December 31, 2019.a. Gross revenues of $5,000,000 were earned for service toMedicare patients.b. Expected contractual adjustments with Medicare, a third-party payor, are $2,500,000; and an allowance for contractual adjustments account is used by Stoney Heights.c. Medicare cleared charges of $5,000,000 with payments of $2,160,000 and total contractual allowances of $2,840,000 ($2,500,000 + $340,000).d. Interim payments received fromMedicare amounted to $250,000.e. The hospital made a lump-sum payment back toMedicare of $100,000.1. Record the transactions in the general journal.2. Calculate the amount of net patient service revenues.3. What is the net cash flow from transactions withMedicare?4. What adjustments must be made at year-end to settle up with Medicare and properly report the net patient service revenues after this settlement?
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $5,500 for medical insurance and contribute an additional $9,000 to a retirement program. Record the entry for these accrued (but unpaid) benefits on December 31.
Chapter 3 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 3 - What is the difference between the cash basis and...Ch. 3 - Why is the accrual basis of accounting generally...Ch. 3 - What type of business is most likely to select a...Ch. 3 - What is a prepaid expense and where is it reported...Ch. 3 - Prob. 5DQCh. 3 - What contra account is used when recording...Ch. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - What are the steps in recording closing entries?Ch. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - What is the purpose of the Income Summary account?Ch. 3 - Explain whether an error has occurred if a...Ch. 3 - Prob. 18DQCh. 3 - What classes of assets and liabilities are shown...Ch. 3 - Prob. 20DQCh. 3 - Prob. 21DQCh. 3 - Prob. 22DQCh. 3 - Prob. 23DQCh. 3 - Prob. 24DQCh. 3 - Refer to Samsung’s financialstatements in Appendix...Ch. 3 - Prob. 1QSCh. 3 - In its first year of operations, Roma Company...Ch. 3 - Classify the following adjusting entries as...Ch. 3 - Prob. 4QSCh. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - a. Barga Company purchases $20,000 of equipment on...Ch. 3 - For each separate case below, follow the...Ch. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - In making adjusting entries at the end of its...Ch. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - List the following steps of the accounting cycle...Ch. 3 - Prob. 23QSCh. 3 - Prob. 24QSCh. 3 - Prob. 25QSCh. 3 - Cal Consulting follows the practice that...Ch. 3 - Answer each of the following questions related to...Ch. 3 - Prob. 28QSCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Use the following information tocompute profit...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - For journal entries 1 through 12, enter the letter...Ch. 3 - Arnez Company’s annual accounting period ends on...Ch. 3 - Prob. 3PSACh. 3 - A six-column table for JKL Company follows. The...Ch. 3 - Prob. 5PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 8PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Prob. 5PSBCh. 3 - Prob. 6PSBCh. 3 - Prob. 7PSBCh. 3 - The adjusted trial balance for Anara Co. as of...Ch. 3 - Using transactions from the following assignments,...Ch. 3 - Prob. 4GLPCh. 3 - Prob. 6GLPCh. 3 - Prob. 1FSACh. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1BTNCh. 3 - One of your classmates states that a company’s...Ch. 3 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A man applied for a Ps. 20,000 whole life policy and paid the full initial premium to the soliciting agent. The agent issued a binding receipt. Under such a receipt, the insurance company A) Offers permanent insurance coverage effective as of the date of the application B) Promises that the insurance coverage will become effective as of the date the application is approved Guarantees the policy will be issued as applied for Immediately provides interim insurance that remains in effect until the policy is issued or the application is declinedarrow_forwardEmployees who elect additional life insurance coverage (Add Life Ins) pay a fee equal to a percentage of their annual salary. The life insurance premium rate is in cell U5. Employees who do not elect additional life insurance pay nothing. In the Life Insurance Premium column, enter an IF function to calculate the life insurance premiums; use an absolute reference to cell U5 to obtain the life insurance rate and enter 0 for employees who do not elect coverage. All full-time employees over the age of 30 are eligible for the 401(k) benefit. In the 401(k) column, enter the IF and AND functions to calculate the 401(k) benefit as 3 percent of annual salary; use an absolute reference to cell U6 to obtain the 401(k) matching percent rate (3 percent). If the employee is not eligible, enter 0. (HINT: the AND function is used as the logical test in the IF function) All employees with one or more years of service are eligible for a bonus. Pay Grade 1 employees receive $3,000 (cell U2), Pay Grade 2…arrow_forwardSt. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,.000 is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and govemment health care agencies. St. Joseph's estimates that 20 percent of these third-party payor charges wll be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $18.000 is collected from the patients during the year and $1,300 of price adjustments are granted to individuals. b. Actual contractual adjustments total $306,000. The remalning recelvable from third-party payors Is collected. (If no entry Is…arrow_forward
- Harrington Hospital provides you with the following information that relates to its financial position at August 31, 20X2, and its operating results for the year then ended: Accounts payable Nonoperating income Accounts receivable Deferred income Long-term investments Nursing services expenses Bonds payable (due 20X9) Daily patient services revenues Fiscal and administrative services expenses Cash Notes payable Land, buildings, and equipment Deductions from patient services revenues Prepaid expenses Other professional services expenses Other professional services revenues Accrued expenses payable Accumulated depreciation Inventory Hospital net assets, August 31, 20X1 Other operating revenues General services expenses $ 430 190 2,950 60 590 4,300 4,100 6,830 1,600 340 180 8,600 970 70 2,900 4,560 820 3,200 240 3,660 630 2,100 Prepare, in good form, (question 1) a statement of operations for Knight Hospital for the year ended August 31, 20X2, and (question 2) a balance sheet for Knight…arrow_forwardBig Blue University has a fiscal year that ends on June 30. The 2019 summer session of the university runs from June 10 through July 29. Total tuition paid by students for the summer session amounted to $123,000. Required: a. How much revenue should be reflected in the fiscal year ended June 30, 2019? Amount of revenue b. Would your answer to part a be any different if the university had a tuition refund policy that no tuition would be refunded after the end of the third week of summer session classes? O Yes O Noarrow_forwardStockton Labeling Company has a retiree health care plan. Employees become fully eligible for benefits after working for the company eight years. Stockton hired Misty Newburn on January 1, 2016. As of the end of 2016, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $18,000. The actuary’s discount rate is 10%. Required: Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2016–2023.arrow_forward
- Stockton Labeling Company has a retiree health care plan. Employees become fully eligible for benefits after working for the company eight years. Stockton hired Misty Newburn on January 1, 2021. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $18,000. The actuary’s discount rate is 10%.Required:Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2021–2028.arrow_forwardOn January 1, 2019, Fun Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The following information is available about the plan: Service cost $31,550 Accumulated postretirement benefit obligation (1/1/19) 114,000 Expected return on plan assets 0 Amortization of Prior service cost 11,400 Payments to retired employees during 2019 5,530 Interest rate 10% Average remaining service period of active plan participants (1/1/19) 10 years Required: 1. Compute the OPRB expense for 2019 if the company uses the average remaining service life to amortize the prior service cost. 2. Prepare all the required journal entries for 2019 if the plan is not funded.arrow_forwardOn January 1, 2019, Lee Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, Lee retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $8,130. The plan is not funded, and the discount rate is 9%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $6,950 for postretirement healthcare benefits in 2019. On December 31, 2019, the accumulated postretirement benefit obligation for Employees B and C were $73,520 and $40,160, respectively. Additional information on January 1, 2019, is as follows: Employee Status Age Expected Retirement Age Accumulated Postretirement Benefit Obligation 1. Employee 31 65 $9,900 2. Employee 55 65 88,800 3. Retired 67 — 44,400 $143,100 Required: 1. Compute the OPRB expense for 2019 if Lee uses the average remaining service life to amortize the prior service cost. 2.…arrow_forward
- On January 1, 2019, Vasby Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, Vasby retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $8,510. The plan is not funded, and the discount rate is 9%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $7,190 for postretirement healthcare benefits in 2019. On December 31, 2019, the accumulated postretirement benefit obligation for Employees B and C were $82,590 and $40,630, respectively. Additional information on January 1, 2019, is as follows: Employee Status Age Expected Retirement Age Accumulated Postretirement Benefit Obligation 1. Employee 31 65 $18,000 2. Employee 55 65 68,400 3. Retired 67 — 42,300 $128,700 Required: 1. Compute the OPRB expense for 2019 if Vasby uses the average remaining service life to amortize the prior service cost.…arrow_forwardOn January 1, 2019, Vasby software company adapted a healthcare plan for its retired employees. To determine eligibility for benefits, Westby retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $8420. The plan is not funded, and the discount rate is 8%. All employees were hired at age 28 and became eligible for full benefits at age 58. Employees he was paid $7390 for post retirement healthcare benefits in 2019. On December 31, 2019, the accumulated post retirement benefit obligation for employees B and see were $76,320 and $41,020 respectively. Additional information on January 1, 2019 is as follows: employee A- age 31- expected retirement age 65- accumulated post retirement benefit obligation $9,000. employee B- age 55- expected retirement age 65- accumulated post retirement benefit obligation $78,600. employee C- age 67- expected retirement age --- accumulated post retirement benefit obligation $45,900. total accumulated post retirement…arrow_forwardRoger Jones is a doctor who operates a medical practice. Roger employs two employees (a nurse and a receptionist). Another doctor works at the practice as employee on a part-time basis. The business is operated from rented premises. Roger also owns several residential properties which he rents out to tenants. Assume Roger is registered for GST in respect of the above and accounts for GST on an accruals basis. For the quarter ended 30 June 2021, the following transactions were reported in the accounting records maintained by Roger: Receipts (inclusive of GST where appropriate) Fees from patients 220000 $ Rent from tenants 55000 $ Expenses (inclusive of GST where appropriate) Rent for premises used for medical practice 11000 $ Wages for nurse and receptionist 22000 $ Remuneration paid to the part-time doctor 55000 $ Fresh flowers for Roger’s home 660 $ Plumbing repairs to residential premises 1100 $ New light fittings for residential premises (tax invoice not received) 3300 $…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY