For each of the following transactions and events, indicate the effect it will have on each of
Question:
Ex1: Recorded nursing salaries of $16,000.
Ex2: Collected $10,000 on patient accounts receivable.
1. A capital campaign in support of a new building brought in pledges of $50,000.
2. $5,000 was expended from the capital campaign on architects fees.
The organization records all fixed assets in the unrestricted class of net assets.
3. Estimate that the amounts collected from third-party payors will be $22,000 less than the amount billed, due to contractual adjustment.
4. Estimate that the amounts collected from individual patients will be $10,000 less than the amount billed.
5. Performed charity care of $6,000 (at normal billing rates).
6. Unrestricted income on endowments amounted to $5,000.
7. Interest expense totaled $850.
8. Investment income limited by board action for capital improvement amounted to $240.
9. Determined depreciation on plant and equipment to be $12,000.
10. Received $500 in unrestrictedcontributions.
Step by Step Answer:
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley