Transactions plus multiple statements. Ambulatory Center, Inc., had the following ending balances for its assets, liabilities, and net assets accounts as of December 31, 20X0.

List and record each 20X1 transaction under the accrual basis of accounting. Then develop a balance sheet for end-of-years 20X0 and 20X1 and a statement of operations and a statement of changes in net assets for the year ended December 31, 20X1.

a. The center made a cash payment of $65,000 to pay off outstanding accounts payable.

b. The center received $14,000 in cash from a donor who temporarily restricted its use.
(Hint: this transaction increases the temporarily restricted net assets account.)

c. The center provided $3,100,000 of services on credit.

d. The center consumed $4,000 of supplies in the provision of its ambulatory services.

e. The center paid off accrued interest expense of $17,500 in cash.

f. The center collected $2,650,000 in cash from outstanding accounts receivable.
g. The center incurred $17,000 in general expenses that it paid for in cash.
h. The center made a $200,000 cash principal payment toward its long-term debt.
i. The center collected $380,000 in cash from outstanding accounts receivable.
j. The center received $19,000 in cash from an HMO for future capitated services.
k. The center purchased $4,000 of supplies on credit.

l. The center earned, but did not receive, $3,900 in income from its restricted net assets.
The income can be used for general operations. (Hint: this transaction increases interest receivable and is also recorded under revenues, gains, and other support.)
m. The center’s temporarily restricted asset account released $3,500 from its restricted account to its unrestricted account for operations. (Hint: the transfer gets recorded under revenues, gains, and other support.)
n. The center incurred $5,000 in interest expense. The interest expense was recorded but not yet paid in cash.
o. The center incurred $2,560,000 in labor expenses, which it paid for in cash.
p. The center paid $4,000 in advance for insurance expense.
q. The center transferred $4,000 in cash to its parent corporation.
r. The center incurred $200,000 in depreciation expense.
s. The center’s prepaid insurance of $2,400 expired for the year.
t. The center estimated $6,800 in bad debt and established a provision for bad debt expense for the year.

Transcribed Image Text:

Givens Cash $33,000 Accounts receivable $60,000 Allowance for uncollectibles $20,000 Inventory or supplies $8,200 Prepaid insurance $1,800 Long-term investments $20,000 Plant, property, and equipment $3,800,000 Accumulated depreciation $1,750,000 Short-term accounts payable $79,000 Accrued expenses $15,000 Long-term debt $1,055,000 Unrestricted net assets $903,300 Permanently restricted net assets $100,700