Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is a list of possible effects for each transaction and the possible effect on revenue: Patient service revenue Contractual adjustments Other revenue (exchange) Other

Below is a list of possible effects for each transaction and the possible effect on revenue:

  1. Patient service revenue
  2. Contractual adjustments
  3. Other revenue (exchange)
  4. Other revenue (nonexchange)
  5. No revenue

For the following transactions or events, match the letter above to illustrate the possible effects the transaction would have on revenue. Then provide detailed rationale for the matches.

  1. The hospital provided medical care valued at $96,000 for homeless citizens.
  2. The hospital received a $15,000 federal grant to provide immunizations to children.
  3. A pharmaceutical firm donated recently approved drugs valued at $19,000. The hospital uses a similar type drug in its operations.
  4. Received $10 co-pay from a patient for an outpatient visit. Billed $800 to insurance.
  5. Geezer Health Insurance paid $625 as final payment on the $800 billed in the previous transaction.
  6. Gift shop sales amounted to $3,200.
  7. A local civic group provided labor to manage the hospital's information desk. The labor was valued at $24,000.
  8. Patient accounts of $1,800 were written off.
  9. The hospital received $900 for CPR training provided to the city police department.
  10. A grateful patient donated $1,000 for unrestricted use by the hospital.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting, The Managerial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0135982138, 9780135982136

More Books

Students also viewed these Accounting questions

Question

Design an internal skills transfer system through tutoring.

Answered: 1 week ago