Question
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). 1. Services
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). |
1. | Services provided to inpatients and outpatients amounted to $9,804,000, of which $467,000 was for charity care, $945,000 was paid by uninsured patients, and $8,392,000 was billed to Medicare, Medicaid, and insurance companies. |
2. | Donated pharmaceuticals and medical supplies valued at $282,000 were received and utilized as general expenses. |
3. | Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,382,000 of the $8,392,000 billed by the hospital during the year (see transaction 1). |
4. | An unconditional contribution of $5,170,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. |
5. | A total of $1,186,000 was received from the following activities/sources: cafeteria and gift shop sales, $880,000; medical seminars, $142,000; unrestricted transfers from the Evanston General Hospital Foundation, $92,000; and fees for medical transcripts, $72,000. |
6. | Uncollectible accounts totaling $4,950 were written off. The allowance for uncollectible receivables was increased by $9,670. |
Required |
a. | Prepare journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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