9-27. The Hospital for Ending Long-term Problems (HELP) had the following financial events during the year:

1. Collected $250,000 in cash that it had billed to the federal government

under Medicare. The money had been earned in the prior fiscal year and was recorded as revenue then.

2. Paid back $100,000 it borrowed at the end of last year on a line of credit. The bank did not charge interest.
3. Bought $25,000 in supplies to treat patients. HELP paid the supplier for all the supplies with cash.
4. Belongs to the state hospital associ ation, and its membership is current (meaning it is paid up through the end of the year). HELP receives an invoice for $75,000 for next year's fees but bas not paid it yet.
5. Replaced many of the patient exam ination tables. They cost $50,000, and HELP put $10,000 down in cash. The rest is still owed.
6. Paid $65,000 it owed employees from last year. Employees had earned this last fiscal year, and it was recorded as an expense then.

Show the impact of these transactions on

the fundamental equation of accounting

(Optional: Show journal entries using deb its and credits. See Appendix 9-A)

9-28. HELP started the year with the following

account balances (shown in alphabetical

order):

Accounts Receivable	$300,000
Cash	135,000
Accounts Payable	0
Equipment	70,000
Line of Credit	100,000
Permanently Restricted Net Assets	167,000
Supplies	7,000
Temporarily Restricted Net Assets	50,000
Unrestricted Net Assets	125,000
Wages Payable	70,000

Record these opening balances and the transactions from Problem 9-27 in a work

------ Liabilities and Net Assets Assets - Liabilities Net Assets Tempo Perma- Wages Line of nently ounts counts Unre rarily Cash Supplies Equipment Credit Stricted restricted restricted Receivable ayable yable Beginning Balance Transaction # 1 Transaction #2 Transaction #3 |Transaction # 4 Transaction # 5 |Transaction #6 $0 Ending Balance $.0 $0 $0 $0 $0