Question
During 2020, the following transactions were recorded by the Port Community Hospital, a private sector not-for-profit institution: 1. Gross charges for patient services, all charged
During 2020, the following transactions were recorded by the Port Community Hospital, a private sector not-for-profit institution:
1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,980,000. Estimated contractual adjustments with third-party payors amounted to $565,000 and the Hospital estimated implicit price concessions would total $28,000.
2. Charity services, not included in transaction 1, would amount to $102,000, had billings been made at gross amounts.
3. Other revenues, received in cash, were parking lot, $38,000; cafeteria, $62,000; gift shop, $14,000.
4. Cash gifts restricted by the donor for programs amounted to $41,300 for the year. During the year, $82,400 was expended for technician salaries supporting the program identified by the donor (debit Operating ExpenseSalaries and Benefits).
5. During the year, the hospital received, in cash, unrestricted contributions of $67,200 and unrestricted income of $57,500 from endowment investments. (It is the hospitals practice to treat unrestricted gifts as nonoperating income.)
6. New equipment, costing $188,000, was acquired, using donor-restricted cash that was on hand at the beginning of the year.
7. An old piece of lab equipment that originally cost $230,000 and that had an undepreciated cost of $46,000 was sold for $25,000 cash.
8. Cash contributions were received from donors restricted for plant acquisition, $228,500.
9. Bills were received for the following items: Utilities $162,400 and Insurance $94,400. These will be paid in January of 2021.
10. Depreciation of plant and equipment amounted to $234,000.
11. Cash payments on accounts payable amounted to $216,600. Another $841,400 was expended on wages and benefits.
12. Cash collections of patient accounts receivable amounted to $1,216,000. These were in settlement of patient accounts totaling $1,677,000. Contractual adjustments associated with these totaled $436,000 and price concessions totaled $25,000.
Prepare journal entries to record the above transactions.
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