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The December 31, 2017 statement of financial position of Mosholu Medical Center, a major urban not-for-profit hospital and research center, is presented below. All amounts

The December 31, 2017 statement of financial position of Mosholu Medical Center, a major urban not-for-profit hospital and research center, is presented below. All amounts are in thousands.

Mosholu Medical Center

Statement of Financial Position as of December 31, 2017

Assets Liabilities
Current Assets

Current Liabilities

Cash 2,704 Accounts payable 55,960
Receivables for patient care (net) 64,710 Accrued wages and salaries 56942
Other receivables 24,402 Total current liabilities 112902
Marketable securities 187909 Noncurrent liabilities
Other current assets 27853 Long-term debt 292370
Total current assets 307578 Deferred revenue & other noncurrent liabilities 106932
Non current assets Total non current liabilities 399302
PPE ($512184 less acc. depreciation $223259) 288925 Net assets 512204
Other assets 11522 Unrestricted 15722
Total noncurrent assets 300447 Temporarily Restricted 62963
Total assets 608025 Permanently Restricted 17136
Total Net Assets 95821
Total liabilities & net assets 608025

The following Transactions and events occurred in 2018 (all dollar amounts in thousand):

1. The hospital provided $705943 in patient care at standard rates. on average, it expects to collect approximately 75% ($529457) of this amount, owing mainly to discounts allowed third-party payers. Further, it expects that 5% of the 75% ($26473) will have to be written off as bad debts.

2. It collected $480125 in patient accounts and it wrote off $50000 of bad debt.

3. It also provided $52000 in charity care which it never expected to collect.

4.it earned $15040 in investment income, of which $10080 is unrestricted and $4960 is temporarily restricted.

5. It purchased plant and equipment of $2242, all of which was paid for with restricted reasorces.

6.it charged depreciation of $29262.

7. It received unrestricted pledges of $2070 and temporarily restricted pledges of $120. it collected all of the unrestricted pledges and $100 of the temp restricted pledges.

8. It earned other operating revenues (Including those from auxiliary enterprises) of $135000.

9. It incurred $430650 in wages and salaries, of which it paid $425000. The balance was accrued. It also incurred $200000 in other operating expenses (including those of auxiliary enterprises), of which it paid $198500. The balance was vouchered (and thereby credited to accounts payable).

10. it incurred and paid $210200 in costs related to restricted contracts and grants (amounts that were not included in any other expense category). It was reimbursed for $206800 and expects to be reimbursed for the balance in the future. In addition, it received $3000 in advances on other grants.

11. The other operating expenses include insurance cost. However, under "retrospective" insurance policies, the hospital anticipates having to pay an additional $3500 in premiums.

Required

a. Prepare journal entries to record the transaction. Be sure to indicate whether each entry would affect unrestricted, temporarily restricted, or permanent restricted net assets.

b. Prepare a statement of activities for 2018 and a statement of financial position as of December 31, 2018.

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