Question
The clinic received a $9,000,000 cash contribution from a donor without restrictions. The clinic purchased $5,500,000 of equipment. The clinic paid cash for the equipment.
The clinic received a $9,000,000 cash contribution from a donor without restrictions.\ The clinic purchased $5,500,000 of equipment. The clinic paid cash for the equipment.\ The clinic borrowed $3,000,000 from the bank on a longterm basis.\ The clinic purchased $850,000 of supplies on credit.\ The clinic provided $9,400,000 of services on credit.\ The clinic used $520,000 of supplies in the provision of these services.\ The clinic received $900,000 in advance to care for capitated patients.\ The clinic incurred $6,500,000 in labor expenses and paid cash for them.\ The clinic incurred $3,230,000 in general expenses and paid cash for them.\ The clinic received $7,000,000 from patients and their third parties in payment of outstanding accounts.\ The clinic met $540,000 of its obligation to capitated patients (transaction g).\ The clinic made a $600,000 cash principal payment on the longterm loan.\ The clinic also made a cash interest payment of $70,000.\ The clinic received a restricted donation of $470,000, which is set aside in temporary investments.\ The clinic recognized $750,000 in depreciation for the year.\ The clinic estimated that $825,000 of patient accounts would not be received, and recorded bad debt expense for this amount.
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