help

A local private not-for-profit health care entity (Rochester Medical) incurfed the folowing transactions duting the current year. The thity has one program service thealth care) and two supporting services (fundraising and adrifistrative). a. The board of governors for Pochester Medical (RM) announces that 5160.000 in previously unrestricted cash will be used in the neat future to acquite equipment. These funds are invested untit the purchase eventually occurs. D. RM receives a donation of $80,000 in cosh with the stipulation that the money be livested in U 5 . 90 ostrment bonds. All subsequent income detlved fiom this imvestment must be gald to supplement nursing salaties. c. PM spends $26.000 in cash to acquire medicines, RM had received this money during the previous year, The donor had specilied that it had to be used for medicines d. Rid charges patients $2 mitho 7 amounts are the responsibuty of qovernment programs and insurance componies. These Thirdpafy paycis will recelve e.s. . price concessions because of long standigg contracts. Officials believe RM has an lio percent chance of recelving $1.5 milion and a 20 percent chance of recelving $10 million. RM has a policy of reperting the most likely oucome. e. RM charges patiens $1 malion. These patients are not insured. RM sets implicit price concestions because of the high cost of health care. Officials betove RM has a 70 petcent chance of collecting $250.000 and a 30 percent chance of receiving $100,000, As stated before, RM has a policy of reporting the most likely outcome. f. RM charges patients $600,000. These patents have littie or no income. The hospital administraton chaoses to view this work as charity care and make no attempt at colle 78. Depreciation expense for the year is $11, . . Of that amount, 70 percent relates to health care, 20 percent to administrative. and 10 percent to fundraising. h. RM recelves interest income of $15,000 on the investments acquiecd in (a). 1. Eased on past history, officials estimate that 551,000 of the reported recewable amount frem third-party payors will never be collected. Of the amount reported by uninsuted patients who are expected to pay a portion of their debt, officials estimate that $20,000 of the reported receivable amount will not be collected. The med cines in (c) are consumed through daily patient care. 1. PM seils the investments in (a) for 5173,000 in cash. RM used that money plus the previously recorded interest income (alang with $25,000 in cash giwn last year to RM with the donot stiputation that the money be used for equipenent) to buy new equipment. K. RM receives pledoes near the end of the year totaling $200,000. O1 that amount, 538,000 is judged to be conditional The remaining $162,000 has a donor-stipulated purpose restriction. The present value of the $162,000 is calcutated as $131,000. journal entry required" in the first account field. Enter your answers in dollars not in millions of do Record $160,000 in previously unrestricted cash to be used in the near future to acqi pment. Record the receipt of donation of $80,000 in cash. x 3 Record the stipulation that the $80,000 donation be invested in U.S. government bonds. 4. Record the $26,000 expenditure in cash t uire medicines. RM had received this money during the previous year. 5 Record the reclassification entry for expenditure of $26,000 made for medicines. Note : = journal entry has been entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets w 5 Record the reclassification entry for expenditure of $26,000 made for medicines. 6 Record the $2 million that RM charges patients. Officials believe RM has an 80 percent chance of receiving $1.5 million and a 20 pet ance of receiving $1 million. RM has a policy of repuis.ug the most likely outcome. 7 Record the $1 million that RM charges patients. These patients are not inssod. Officials believe RM has a 70 percent chance of collecting $250,000 and a 30 percent chance of recelving $100,000. 8. Record the $600,000 that RM charges patients. These patients have little or no income. The hospital 9 Record the depreciation expense for the year is $110,000. Of that amount, 70 percent relates to health care, 20 percent to administrative, and 10 percent to fundraising. 10 Record the receip. cerest income of $15,000 on the investments acquired in (1). 11 Record the officials estimate that $51,000 of the reported receivable amount from third-party payors will never be collected. Of the amigint rennrted by uninsured patients who are expected to pay _ _. dion of their debt, officials Note : = journal entry has been entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets amounts should be indicated by a minus sign. Enter your answers in dollars not in millions of doll 12. Record the consump. nedicines as given in (3) through dolly patient caie. 1) Record the sale of investments for $173,000 in cash. 14 Record the purchasefif new equipment. RM used the money from sale of investmer ' is the previously recorded interest income (along with $25,000 in cash given last year to RM with the donor stipulation 15 Record the reclassification of the amount used to buy the equipment. 16 Record the pledges to be received near the end of the vear tritalina $20n nn. A that amnint $78. n is Wote : 9= journal entry has been entered 13 Record the sale of investments for $173,000 in cash. 14 Record the purchase of new equipment. RM used the money from sale of invest 5 plus the previously recorded interest income, , with $25,000 in cash given last year to RM with the donor stipulation 15 Record the reclassification of the amount used to buy the equipment. 16 Record the pledges to be recelved ficar the end of the year totaling $200,000. Of that amount, $38,000 is judged to be conditional. The remaining $162,000 has a donor-stipulated purpose restriction. The present value of the $162,000 is calculated as $131,000. Note : = journal entry has ben entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets with donor restrictions. amounts should be indicated by a minus sign. Enter your answers in dollars not in millions of dollars.) A local private not-for-profit health care entity (Rochester Medical) incurfed the folowing transactions duting the current year. The thity has one program service thealth care) and two supporting services (fundraising and adrifistrative). a. The board of governors for Pochester Medical (RM) announces that 5160.000 in previously unrestricted cash will be used in the neat future to acquite equipment. These funds are invested untit the purchase eventually occurs. D. RM receives a donation of $80,000 in cosh with the stipulation that the money be livested in U 5 . 90 ostrment bonds. All subsequent income detlved fiom this imvestment must be gald to supplement nursing salaties. c. PM spends $26.000 in cash to acquire medicines, RM had received this money during the previous year, The donor had specilied that it had to be used for medicines d. Rid charges patients $2 mitho 7 amounts are the responsibuty of qovernment programs and insurance componies. These Thirdpafy paycis will recelve e.s. . price concessions because of long standigg contracts. Officials believe RM has an lio percent chance of recelving $1.5 milion and a 20 percent chance of recelving $10 million. RM has a policy of reperting the most likely oucome. e. RM charges patiens $1 malion. These patients are not insured. RM sets implicit price concestions because of the high cost of health care. Officials betove RM has a 70 petcent chance of collecting $250.000 and a 30 percent chance of receiving $100,000, As stated before, RM has a policy of reporting the most likely outcome. f. RM charges patients $600,000. These patents have littie or no income. The hospital administraton chaoses to view this work as charity care and make no attempt at colle 78. Depreciation expense for the year is $11, . . Of that amount, 70 percent relates to health care, 20 percent to administrative. and 10 percent to fundraising. h. RM recelves interest income of $15,000 on the investments acquiecd in (a). 1. Eased on past history, officials estimate that 551,000 of the reported recewable amount frem third-party payors will never be collected. Of the amount reported by uninsuted patients who are expected to pay a portion of their debt, officials estimate that $20,000 of the reported receivable amount will not be collected. The med cines in (c) are consumed through daily patient care. 1. PM seils the investments in (a) for 5173,000 in cash. RM used that money plus the previously recorded interest income (alang with $25,000 in cash giwn last year to RM with the donot stiputation that the money be used for equipenent) to buy new equipment. K. RM receives pledoes near the end of the year totaling $200,000. O1 that amount, 538,000 is judged to be conditional The remaining $162,000 has a donor-stipulated purpose restriction. The present value of the $162,000 is calcutated as $131,000. journal entry required" in the first account field. Enter your answers in dollars not in millions of do Record $160,000 in previously unrestricted cash to be used in the near future to acqi pment. Record the receipt of donation of $80,000 in cash. x 3 Record the stipulation that the $80,000 donation be invested in U.S. government bonds. 4. Record the $26,000 expenditure in cash t uire medicines. RM had received this money during the previous year. 5 Record the reclassification entry for expenditure of $26,000 made for medicines. Note : = journal entry has been entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets w 5 Record the reclassification entry for expenditure of $26,000 made for medicines. 6 Record the $2 million that RM charges patients. Officials believe RM has an 80 percent chance of receiving $1.5 million and a 20 pet ance of receiving $1 million. RM has a policy of repuis.ug the most likely outcome. 7 Record the $1 million that RM charges patients. These patients are not inssod. Officials believe RM has a 70 percent chance of collecting $250,000 and a 30 percent chance of recelving $100,000. 8. Record the $600,000 that RM charges patients. These patients have little or no income. The hospital 9 Record the depreciation expense for the year is $110,000. Of that amount, 70 percent relates to health care, 20 percent to administrative, and 10 percent to fundraising. 10 Record the receip. cerest income of $15,000 on the investments acquired in (1). 11 Record the officials estimate that $51,000 of the reported receivable amount from third-party payors will never be collected. Of the amigint rennrted by uninsured patients who are expected to pay _ _. dion of their debt, officials Note : = journal entry has been entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets amounts should be indicated by a minus sign. Enter your answers in dollars not in millions of doll 12. Record the consump. nedicines as given in (3) through dolly patient caie. 1) Record the sale of investments for $173,000 in cash. 14 Record the purchasefif new equipment. RM used the money from sale of investmer ' is the previously recorded interest income (along with $25,000 in cash given last year to RM with the donor stipulation 15 Record the reclassification of the amount used to buy the equipment. 16 Record the pledges to be received near the end of the vear tritalina $20n nn. A that amnint $78. n is Wote : 9= journal entry has been entered 13 Record the sale of investments for $173,000 in cash. 14 Record the purchase of new equipment. RM used the money from sale of invest 5 plus the previously recorded interest income, , with $25,000 in cash given last year to RM with the donor stipulation 15 Record the reclassification of the amount used to buy the equipment. 16 Record the pledges to be recelved ficar the end of the year totaling $200,000. Of that amount, $38,000 is judged to be conditional. The remaining $162,000 has a donor-stipulated purpose restriction. The present value of the $162,000 is calculated as $131,000. Note : = journal entry has ben entered b. Prepare a schedule calculating the change in net assets without donor restrictions and net assets with donor restrictions. amounts should be indicated by a minus sign. Enter your answers in dollars not in millions of dollars.)