Question
The Hospital for Ending Long-term Problems (HELP) had the following financial events during the year. HELP collected $250,000 in cash that it had billed to
The Hospital for Ending Long-term Problems (HELP) had the following financial events during the year.
HELP collected $250,000 in cash that it had billed to the federal government under Medicare. The money had been earned in the prior fiscal year and was recorded as accounts receivable then.
HELP paid back $100,000 it borrowed at the end of the last year on a line of credit. The bank did not charge interest.
HELP bought $25,000 in supplies to treat patient. HELP paid the supplier for all the supplies with cash.
HELP belongs to the state hospital association, and its membership is current (meaning it is paid up through the end of the year). HELP receivers an invoice for $75,000 for next years fees but has not paid it yet.
HELP replace many of the patient examination tables. The cost $50,000, and HELP put $10,000 down in cash. The rest is still owed.
HELP paid $65,000 it owed employees from last year. Employees had earned this last fiscal year and it was recorded as an expense then.
Show the impact of these transactions on the Fundamental Equation of Accounting by answering the following questions.
The most liquid asset affected by Transaction 1 (T1) is? What that answer, what is the dollar amount it changed? Include a minus sign if necessary. Do not include a dollar sign or commas."
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