Exercise 16-22 (Algo) Revenue and Related Transactions [LO 16-3] During its current fiscal year, Evanston General...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559fb5b0c14_47766559fb5aae4e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559fb602dd4_47766559fb5f204b.jpg)
Transcribed Image Text:
Exercise 16-22 (Algo) Revenue and Related Transactions [LO 16-3] 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 $9,696,000, of which $458,000 was for charity care; $936,000 was paid by uninsured patients; and $8,302,000 was billed to Medicare, Medicaid, and insurance companies. 2. Donated pharmaceuticals and medical supplies valued at $273,000 were received and utilized as general expenses. 3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,373,000 of the $8,302,000 billed by the hospital during the year (see transaction 1). 4. An unconditional contribution of $5,080,000 was received in cash from a donor to construct a new facility for care of Alzheimer's patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. 5. A total of $1,069,000 was received from the following activities/sources: cafeteria and gift shop sales, $790,000; medical seminars, $133,000; unrestricted transfers from the Evanston General Hospital Foundation, $83,000; and fees for medical transcripts, $63,000. 6. The implicit price concessions increased by $5,170. Required a. Prepare journal entries for the preceding transactions. b. Prepare the revenues, gains, and other support without donor restrictions section of Evanston General Hospital's statement of operations for the current year. Exercise 16-22 (Algo) Revenue and Related Transactions [LO 16-3] 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 $9,696,000, of which $458,000 was for charity care; $936,000 was paid by uninsured patients; and $8,302,000 was billed to Medicare, Medicaid, and insurance companies. 2. Donated pharmaceuticals and medical supplies valued at $273,000 were received and utilized as general expenses. 3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,373,000 of the $8,302,000 billed by the hospital during the year (see transaction 1). 4. An unconditional contribution of $5,080,000 was received in cash from a donor to construct a new facility for care of Alzheimer's patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. 5. A total of $1,069,000 was received from the following activities/sources: cafeteria and gift shop sales, $790,000; medical seminars, $133,000; unrestricted transfers from the Evanston General Hospital Foundation, $83,000; and fees for medical transcripts, $63,000. 6. The implicit price concessions increased by $5,170. Required a. Prepare journal entries for the preceding transactions. b. Prepare the revenues, gains, and other support without donor restrictions section of Evanston General Hospital's statement of operations for the current year.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A few years ago, Hendersen Corp. issued preferred stock paying 8% of its par value of $50. The issue is currently selling for $38. Preferred stock flotation costs are 15% of the proceeds of the sale....
-
Provide a solution to the previous problem in the form of pseudocode.
-
How important to an organization such as Netflix is the hiring of talented employees? Explain. LO3
-
Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received...
-
Assume that you are on the financial staff of West Enterprises, and you have collected the following data: (1) The yield to maturity on the companys outstanding 8% annual coupon bonds is 6.0%, and...
-
2-Assume that the time needed to complete the final project for a particular course is normally distributed with a mean of 120 hours and a standard deviation of 10 hours. a- What percentage of the...
-
Describe in your own words how you would expect the data points on a scatterplot to be distributed if the following features were present (i.e. for each part, explain how the feature would look on a...
-
imagine this experimental setup: One temperature probe is in embedded in a small block of frozen sugar water at -20. The frozen sugar water is in a small test tube The melting/freezing point of this...
-
Question 2: (40 points: 10 each) During September, Sweet Foods manufactures a single product. The Company's material purchases amounted to 9,000 pounds at a price of $9.80 per pound. Actual costs...
-
E12-23 (Algo) (Supplement 12B) Preparing a Statement of Cash Flows, Indirect Method: T-Account Approach [LO 12-S2] Golf Goods Incorporated is a regional and online golf equipment retailer. The...
-
A symmetric compound channel in over bank flow has a main channel with a bottom width of 30 m, side slopes of 1:1, and a flow depth of 3m. The floodplains on either side of the main channel are both...
-
o Summarize your initiative and budget proposal. o Provide 1-2 action steps your supervisor should take to approve the budget for the initiative
-
14. A capital budgeting analytical technique that relates the present value of the returns (cash inflows) from an investment to the present value of the cost (cash outflows) of the investment, given...
-
How do we discover the strategy guru hidden inside us? LO1
-
What is strategy and why is this important? LO1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App