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During 2017, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution. Gross charges for patient services, all charged
During 2017, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution.
- Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,810,000. Contractual adjustments with third-party payers amounted to $480,000.
- Charity services, not included in transaction 1, would amount to $68,000, had billings been made at gross amounts.
- Other revenues, received in cash, were parking lot, $21,000; cafeteria, $36,500; gift shop, $5,500.
- Cash gifts for cancer research amounted to $26,850 for the year. During the year, $51,800 was expended for cancer research technicians salaries (debit Operating ExpenseSalaries and Benefits).
- Mortgage bond payments amounted to $51,600 for principal and $29,200 for interest. Assume unrestricted resources are used.
- During the year, the hospital received, in cash, unrestricted contributions of $43,400 and unrestricted income of $36,250 from endowment investments. (It is the hospitals practice to treat unrestricted gifts as nonoperating income.)
- New equipment, costing $154,000, was acquired using donor-restricted cash that was on hand at the beginning of the year. Port Hudsons policy is to record all equipment in the unrestricted net asset class.
- An old piece of lab equipment that originally cost $60,000 and that had an undepreciated cost of $12,000 was sold for $8,000 cash.
- At the end of 2017, pledges received in the amount of $125,000 were intended to be paid and used for unrestricted purposes in 2018.
- Cash contributions were received as follows: temporarily restricted for purposes other than plant, $41,250; temporarily restricted for plant acquisition, $132,000.
- Bills totaling $221,100 were received for the following items:
Utilities | $ | 140,300 |
Insurance | 80,800 | |
- Depreciation of plant and equipment amounted to $183,000.
- Cash payments on vouchers payable amounted to $170,700. Another $802,300 was expended on wages and benefits. Cash collections of patient accounts receivable amounted to $1,182,000.
- Closing entries were prepared.
Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital. (should have 21 entries)
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