Transactions plus multiple statements. The following are the financial transactions for the Family Home Health Care Center, a not-for-profit, business-oriented organization. Beginning balances at January 1, 20X1, for its assets, liabilities, and net assets accounts are shown in the following list. QUESTIONS AND PRES Glvens Cash Accounts receivable Allowance for uncollectibles Supplies Long-term investments Properties and equipment Accumulated depreciation Short-term accounts payable Other current liabilities Long-term debt Unrestricted net assets Permanently restricted net assets 55.500 560,000 $4,500 513,000 $42.000 5880,000 $90,000 542.000 $3,000 $680,000 $169,000 $12,000 List and record each transaction under the accrual basis of accounting. Then develop a balance sheet as of December 31, 20X1 and 20x0, and a statement of operations for the year ended December 31, 20X1. a. The center purchased $4,000 of supplies on credit. expens b. The center provided $430,000 of home health services on credit. The center consumed $9,000 of supplies in the provision of its home health services. d. The center provided $250,000 of home health services, and patients paid for services in cash. e. The center paid cash for $5,000 of supplies in the provision of its home health services. C- f. The center paid $24,000 in cash for supplies previously purchased on credit. g. A donor established a $87,000 permanent endowment fund (in the form of long-term investments) for the center. (Hint this transaction increases the permanently restricted net assets account.) h. The center collected $250,000 from patients for outstanding receivables. 1. The center paid $300,000 in cash toward labor expense. J. The center paid $90,000 in cash toward its long-term loan. k. The center purchased $35,000 in small equipment on credit. The amount is due bul within one year spent money The center incurred $40,000 in general expenses. The center used cash to pay for the general expenses. got an asset, so expense (-) REVIEW QUESTIONS AND PROBLEMS 129 Glvens Cash Accounts receivable Allowance for uncollectibles Supplies Long-term investments Properties and equipment Accumulated depreciation Short-term accounts payable Other current liabilities Long-term debt Unrestricted net assets Permanently restricted net assets $5,500 $60,000 54,500 $13,000 $42,000 $880,000 $90,000 $42,000 $3,000 $680,000 $169,000 $12,000 C List and record each transaction under the accrual basis of accounting. Then develop a balance sheet as of December 31, 20X1 and 20x0, and a statement of operations for the year ended December 31, 20X1. a. The center purchased $4,000 of supplies on credit. b. The center provided $430,000 of home health services on credit. The center consumed $9,000 of supplies in the provision of its home health services. d. The center provided $250,000 of home health services, and patients paid for services in cash e. The center paid cash for $5,000 of supplies in the provision of its home health services. f. The center paid $24,000 in cash for supplies previously purchased on credit g. A donor established a $87,000 permanent endowment fund (in the form of long-term Investments) for the center. (Hint this transaction increases the permanently restricted net assets account.) h. The center collected $250,000 from patients for outstanding receivables. 1. The center paid $300,000 in cash toward labor expense. 1. The center pald $90,000 in cash toward its long-term loan. k. The center purchased $35,000 in small equipment on credit. The amount is due within one year. 1. The center incurred $40,000 in general expenses. The center used cash to pay for the general expenses. 130 CHAPTER 3 PRINCIPLES AND PRACTICES OF HEALTH CARE ACCOUNTING m. The center incurred $8,000 in interest expense for the year. A cash payment of $8,000 was made to the bank. n. The center made a $9,000 cash transfer to its parent corporation. o. The center recognized labor expense of $4,500 but does not incur a cash payment. p. The center recognized depreciation expenses of $20,000. - expense 4. The center estimated it would not collect $85,000 of the patient accounts receivable, and established a provision for bad debt. 12 Statement fontiane The followiniet Transactions plus multiple statements. The following are the financial transactions for the Family Home Health Care Center, a not-for-profit, business-oriented organization. Beginning balances at January 1, 20X1, for its assets, liabilities, and net assets accounts are shown in the following list. QUESTIONS AND PRES Glvens Cash Accounts receivable Allowance for uncollectibles Supplies Long-term investments Properties and equipment Accumulated depreciation Short-term accounts payable Other current liabilities Long-term debt Unrestricted net assets Permanently restricted net assets 55.500 560,000 $4,500 513,000 $42.000 5880,000 $90,000 542.000 $3,000 $680,000 $169,000 $12,000 List and record each transaction under the accrual basis of accounting. Then develop a balance sheet as of December 31, 20X1 and 20x0, and a statement of operations for the year ended December 31, 20X1. a. The center purchased $4,000 of supplies on credit. expens b. The center provided $430,000 of home health services on credit. The center consumed $9,000 of supplies in the provision of its home health services. d. The center provided $250,000 of home health services, and patients paid for services in cash. e. The center paid cash for $5,000 of supplies in the provision of its home health services. C- f. The center paid $24,000 in cash for supplies previously purchased on credit. g. A donor established a $87,000 permanent endowment fund (in the form of long-term investments) for the center. (Hint this transaction increases the permanently restricted net assets account.) h. The center collected $250,000 from patients for outstanding receivables. 1. The center paid $300,000 in cash toward labor expense. J. The center paid $90,000 in cash toward its long-term loan. k. The center purchased $35,000 in small equipment on credit. The amount is due bul within one year spent money The center incurred $40,000 in general expenses. The center used cash to pay for the general expenses. got an asset, so expense (-) REVIEW QUESTIONS AND PROBLEMS 129 Glvens Cash Accounts receivable Allowance for uncollectibles Supplies Long-term investments Properties and equipment Accumulated depreciation Short-term accounts payable Other current liabilities Long-term debt Unrestricted net assets Permanently restricted net assets $5,500 $60,000 54,500 $13,000 $42,000 $880,000 $90,000 $42,000 $3,000 $680,000 $169,000 $12,000 C List and record each transaction under the accrual basis of accounting. Then develop a balance sheet as of December 31, 20X1 and 20x0, and a statement of operations for the year ended December 31, 20X1. a. The center purchased $4,000 of supplies on credit. b. The center provided $430,000 of home health services on credit. The center consumed $9,000 of supplies in the provision of its home health services. d. The center provided $250,000 of home health services, and patients paid for services in cash e. The center paid cash for $5,000 of supplies in the provision of its home health services. f. The center paid $24,000 in cash for supplies previously purchased on credit g. A donor established a $87,000 permanent endowment fund (in the form of long-term Investments) for the center. (Hint this transaction increases the permanently restricted net assets account.) h. The center collected $250,000 from patients for outstanding receivables. 1. The center paid $300,000 in cash toward labor expense. 1. The center pald $90,000 in cash toward its long-term loan. k. The center purchased $35,000 in small equipment on credit. The amount is due within one year. 1. The center incurred $40,000 in general expenses. The center used cash to pay for the general expenses. 130 CHAPTER 3 PRINCIPLES AND PRACTICES OF HEALTH CARE ACCOUNTING m. The center incurred $8,000 in interest expense for the year. A cash payment of $8,000 was made to the bank. n. The center made a $9,000 cash transfer to its parent corporation. o. The center recognized labor expense of $4,500 but does not incur a cash payment. p. The center recognized depreciation expenses of $20,000. - expense 4. The center estimated it would not collect $85,000 of the patient accounts receivable, and established a provision for bad debt. 12 Statement fontiane The followiniet