After you prepared the Balance Sheet, you find that the following two transactions were missing from the above information you received. Revise the Balance Sheet reflecting each adjustment. (Adjustment 1] Miller hospital bought an urgent care facility for $1,530,000 in October 2015. The urgent care center is located in the prime shopping area that is 10 miles from the hospital. The actual value of the urgent care center was $1,220,000, but the board decided to pay extra during the negotiation because of the location. The urgent care center will not only attract new patients but will also advertise the hospital brand. [Adjustment 2] BMW is one of the major employers in Newtown. The CEO of BMW plant donated $790,000 worth of medical supplies and $2,200,000 worth of Da Vinci Robotic Surgery System to the hospital in November 2015. Preparation of a Balance Sheet Suppose that you are a new hire in finance department Miller Hospital, a not-for-profit hospital. You are assigned to prepare a Balance Sheet for the year ending December 31, 2015. Prepare a Balance Sheet using the following information. Transactions Deposited funds in the Bank Certified checks (in thousands) 500 85 $ 350,600 $ 300 1,250 $ 36,500 185,000 115 23.5% Net patient charges by the end of 2015 Courtesy allowance (not included in employee benefits) Received donation for running free diabetes awareness program in the community in the year 2016 Supplies Properties and equipment (not supplies) Certificate of deposits Doubtful account allowance Accumulated depreciation Addition of a parking garage Payment due for supplies Salaries and benefits due for payment temporary market securities Estimated malpractice cost Long-term debt current portion of long-term liabilities Other accrued liabilities $ 55,000 1,000 20,500 30,600 350 $ $ $ 280 55,600 3,720 1,640 After you prepared the Balance Sheet, you find that the following two transactions were missing from the above information you received. Revise the Balance Sheet reflecting each adjustment. (Adjustment 1] Miller hospital bought an urgent care facility for $1,530,000 in October 2015. The urgent care center is located in the prime shopping area that is 10 miles from the hospital. The actual value of the urgent care center was $1,220,000, but the board decided to pay extra during the negotiation because of the location. The urgent care center will not only attract new patients but will also advertise the hospital brand. [Adjustment 2] BMW is one of the major employers in Newtown. The CEO of BMW plant donated $790,000 worth of medical supplies and $2,200,000 worth of Da Vinci Robotic Surgery System to the hospital in November 2015. Preparation of a Balance Sheet Suppose that you are a new hire in finance department Miller Hospital, a not-for-profit hospital. You are assigned to prepare a Balance Sheet for the year ending December 31, 2015. Prepare a Balance Sheet using the following information. Transactions Deposited funds in the Bank Certified checks (in thousands) 500 85 $ 350,600 $ 300 1,250 $ 36,500 185,000 115 23.5% Net patient charges by the end of 2015 Courtesy allowance (not included in employee benefits) Received donation for running free diabetes awareness program in the community in the year 2016 Supplies Properties and equipment (not supplies) Certificate of deposits Doubtful account allowance Accumulated depreciation Addition of a parking garage Payment due for supplies Salaries and benefits due for payment temporary market securities Estimated malpractice cost Long-term debt current portion of long-term liabilities Other accrued liabilities $ 55,000 1,000 20,500 30,600 350 $ $ $ 280 55,600 3,720 1,640
