Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P7.1. Goodness Hospital's general ledger contains the following unadjusted account balances, among others, at December 31, 20X1: 130 Acct. No. 104 Accounts receivable $ 850,000

image text in transcribedimage text in transcribed

P7.1. Goodness Hospital's general ledger contains the following unadjusted account balances, among others, at December 31, 20X1: 130 Acct. No. 104 Accounts receivable $ 850,000 105 Allowance for uncollectible accounts -0- 120 Land 25,000 Buildings 3,000,000 131 Accumulated depreciation-buildings -0- 140 Equipment 1,800,000 Accumulated depreciation equipment 501 Contractual adjustments 502 Charity care adjustments 607 Depreciation expense 609 Bad debt expense The following additional information is available: 1. Of the December 31, 20x1, accounts receivable, it is estimated that 15 percent will prove to be uncollectible due to these factors: 141 Contractual adjustments, 6% Charity care adjustments, 4% Bad debt expense, 5% 2. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and an expected salvage value of $200,000. 3. Equipment, which cost $1,500,000, was acquired on January 1, 20X1. Additional equipment was acquired on July 1, 20x1, for $300,000. All equipment has a 20 percent salvage value and an estimated useful life of ten years. Reguired: Prepare, in general journal form, all necessary adjusting entries at December 31, 20X1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Financial System Reform In A Transition Economy A Case Study Of Russia

Authors: Robert W. McGee, Galina G. Preobragenskaya

4th Edition

0387238476, 9780387238470

More Books

Students also viewed these Accounting questions

Question

H. For example Google gives roughly 8% of its profits to charity.

Answered: 1 week ago