Problem 19-10 with the reasons for the answer

Cash ....... Debit Credit Accounts Receivable (net) ... 255,000 Contributions Receivable. 625,000 Inventory of Supplies ..... 185,000 Student Loans Receivable .. 175,000 Land, Buildings, and Equipment (net) ........ 300,000 Long-Term Investments... 1,450,000 Accounts Payable ....... 3,025,000 Amounts Held on Behalf of Others. . . . . ... 120,000 250,000 Long-Term Debt 660,000 U.S. Government Grants Refundable .... 100,000 Problem 19-10 (LO 6, 7, 8, 10) Health care, multiple-choice. Select the best answer for each of the following multiple-choice items dealing with hospitals: 1. In June 2018, Park Hospital purchased medicines from Jove Pharmaceutical Company at a cost of $2.000. However, Jove notified Park that the invoice was being canceled and the medicines were being donated to Park. Park should record this donation of medicines as a. a memorandum entry only. b. other operating revenues of $2,000. c. a $2,000 credit to Operating Expenses. d. a $2,000 credit to Nonoperating Expenses. 2 In 2018. Pyle Hospital received a $250,000 pure endowment grant. Also in governing board designated for special uses, $300,000 that had originated from gifts. What amount of these resources should be accounted for as part of the bo in 2018. ed from inte the unrestricte $0 b. $250,000 300,000 d. $550,000 Cure Hospital's property, plant, and equipment, net of depreciation. $10,000,000, with related mortgage liabilities of $1,000,000. What amo included in the permanently restricted net asset class? t ed 50 b. $1,000,000 $9,000,000 d. $10,000,000 4 Palma Hospital patient service revenues for services provided in 2018. aastal amounted to $8.000.000 on the accrual basis. For internal reporting, Palmases the charge method. Under this method, patient service revenues are recognized only be patients are discharged, with no recognition given to revenues accruing for service patients not yet discharged. Patient service revenues at established rates using the dische method amounted to $7.000.000 for 2018. According to GAAP, Palma should repon patient service revenues for 2018 of a. either $8,000,000 or $7.000.000, at the option of the hospital. b. $8,000,000 c. $7,500,000 d. $7,000,000 Ross Hospital's accounting records disclosed the following information: $10,000,000 2,000,000 Net resources invested in plant assets hospital policy is to release donor restrictions when assets are placed in service) ....... Board designated funds. What amount should be included as unrestricted net assets? 2. $12,000,000 b. $10,000,000 . 82.000.000 d. 50 In 2018, Wells Hospital received an unrestricted bequest of common stock with a faitval of 50.000 on the date of receipt of the stock. The testator had paid $20,000 for this in 2018. Wells should record this bequest as nonoperating revenues of $50,000. b. nonoperating revenues of $30,000. nonoperating revenues of $20,000. d. a memorandum entry only. On March 1. 2018.A.C. Rowe established a $100.000 endowment fund, the income which is to be paid to Elm Hospital for general operating purposes. Elm does the funds principal. Rowe appointed West National Bank as trustee of this ne journal entry is required by Elm to record the establishment of the endowment! a. Cash 100,000 Nonexpendable Endowment Fund . es not con this fund. Wh 10000 19 ACCOUNTING FOR NOT-FOR-PROFIT COLLEGES AND UNIVERSITIES AND HEALTH AND UNIVERSITIES AND HEALTH CARE ORGANIZATIONS 100,000 100,000 b. Cash ........... Nonoperating Revenues......... c. Nonexpendable Endowment Fund. ...... Endowment Fund Balance.... 100,000 100,000 d. A memorandum entry only. 8. Under Cura Hospital's established rate structure, patient service revenues of $9,000,000 would have been earned for the year ended December 31, 2019. However, only $6,750,000 was collected because of charity allowances of $1,500,000 and discounts of $750,000 to third-party payors. For the year ended December 31, 2019, what amount should Cura record as net patient service revenues? 2. $6,750,000 b. $7.500,000 c. $8,250,000 d. $9,000,000 9. An organization of high school seniors performs services for patients at Leer Hospital. These students are volunteers and perform services that the hospital would not otherwise provide, such as wheeling patients in the park and reading to patients. These volunteers donated 5,000 hours of service to Leer in 2017. At the minimum wage rate, these services would amount to $22,500, while it is estimated that the fair value of these services was $27,000. In Leer's 2017 statement of revenues and expenses, what amount should be reported as nonoperating revenues? 2. $27,000 b. $22,500 c. $6.250 d. $0 10. Cedar Hospital has a marketable equity securities portfolio that is included appropriately innoncurrent assets in unrestricted funds. The portfolio has an aggregate cost of 300.000 I had an aggregate fair value of $20,000 at the end of 2019 and 290.000 the end of 2020. If the portfolio was reported properly in the balance sheet at the end 2020, the change in the valuation allowance at the end of 2020 should be a. $0. b. a decrease of $40,000. c. an increase of $40,000. d. an increase of $50,000. (AICPA adapted) multiloche