57. A hospital has the following account balances: Revenue from newsstand Amounts charged to patients Salary expense-nurses Interest income Bad debts Undesignated gifts Contractual adjustments $ 50,000 800,000 30,000 100,000 10,000 80,000 110,000 What is the hospital's net patient service revenue? a. $880,000 b. $800,000 c. $690,000 d. $680,000 58. In accounting for hospitals, what are third party payors? a. Drug companies who supply free drugs for char- ity patients. b. Doctors who reduce fees for poor patients. c. Insurance companies, Medicare and other groups that pay a significant portion of medical fees for patients. d. A computer company who repairs the hospital's computers without charge. 59. What is a contractual adjustment? a. An adjusting entry made at year-end to accrue unpaid patient service revenue. b. A reduction of patient service revenue for charity care. c. An allocation of the cost of patient care to the departments that supply the patient care. d. A reduction in patient service revenue because of agreements with third party payors that allow them to pay a health care entity based on the agreed upon determination of reasonable cost. 60. Fike Hospital, a private, not-for-profit institution, receives an unrestricted gift of common stock with a fair value of $100,000. The donor had paid $40,000 for the stock five years earlier. The gift should be recorded as an a. Increase in temporarily restricted net assets of $100,000. b. Increase in unrestricted net assets of $100,000. c. Increase in temporarily restricted net assets of $40,000. d. Increase in unrestricted net assets of $40,000