Question
Little Town Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1. Gross patient services charges totaled $4,000,000. 2. Included
Little Town Hospital is a private, not-for-profit hospital. The following information is available about the operations.
1. Gross patient services charges totaled $4,000,000.
2. Included in the above revenues are: charity services, $125,000; contractual adjustments, $350,000; courtesy allowances, $10,000; and estimated uncollectible amounts, $150,000.
3. Premium fees receipts were $125,000.
4. Purchased $40,000 of hospital supplies on account, with payments on that account, $36,000.
5. Received cash donations for a new hospital wing of $1,100,000.
6. Paid contractor $275,000 for billed costs toward the new hospital wing.
Instructions: Make journal entries for the aforementioned transactions
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