During 2024, the following transactions were recorded by the Port Hudson Community Hospital, a private-sector not-for- profit institution: 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,675,000. Estimated contractual adjustments with third-party payors amounted to $405,000, and the hospital estimated implicit price concessions totaling 35,000. 2. Charity services, not included in transaction 1, would amount to $66,000 had billings been made at gross amounts. 3. Other revenues received in cash were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000. 4. Cash gifts restricted by the donor for programs amounted to $32,000 for the year. During the year, $50,000 was expended for technician salaries supporting the program identified by the donor (Debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $42,000 and unrestricted income of $35,000 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating income.) 7. New equipment, costing $280,000, was acquired using donor-restricted cash that was on hand at the beginning of the year. 8. An old piece of lab equipment that originally cost $50,000 and had an undepreciated cost of $10,000 was sold for $7,000 cash. 9. At the end of 2024, pledges (restricted as to purpose) were received in the amount of $50,000. These are intended to be received and expended in 2025. 10. Cash contributions were received from donors restricted for plant acquisition, $170,000. 11. Bills were received for the following items: utilities, $139,000, and insurance, $80,000. These will be paid in January of 2025. 12. Depreciation of plant and equipment amounted to $180,000. 13. Cash payments on accounts payable amounted to $168,000. Another $910,000 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,180,000. These were in settlement of patient accounts totaling $1,587,000. Contractual adjustments associated with these totaled $400,000, and price concessions totaled $7,000. 15. Closing entries were prepared. Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital.
- A
Record the gross charges for patient services, all charged to Patient
- B
Record the estimated contractual adjustments for patient services with third-party payors amounting $405,000.
- C
Record the hospital estimated implicit price concessions would total $35,000.
- D
Charity services, not included in transaction 1, would amount to $66,000 had billings been made at gross amounts.
- E
Other revenues received in cash were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000.
- F
Record the cash gifts restricted by the donor for programs amounting $32,000 for the year.
- G
Record the $50,000 technician salaries supporting the program.
- H
Record the reclassification of assets in satisfaction of program restrictions.
- I
Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used.
- J
During the year, the hospital received, in cash, unrestricted contributions of $42,000 and unrestricted income of $35,000 from endowment investments. (It is the hospital’s practice to treat unrestricted gifts as nonoperating income.)
- K
Record the new equipment, costing $280,000, acquired using donor-restricted cash that was on hand at the beginning of the year.
- L
Record the reclassification of net assets due to equipment acquisition.
- M
An old piece of lab equipment that originally cost $50,000 and had an undepreciated cost of $10,000 was sold for $7,000 cash.
- N
At the end of 2024, pledges (restricted as to purpose) were received in the amount of $50,000. These are intended to be received and expended in 2025.
- O
Cash contributions were received from donors restricted for plant acquisition, $170,000.
- P
Record the bills received for utilities amounting $139,000 and insurance amounting $80,000 to be paid in January of 2025.
- Q
- R
Record the cash payments on accounts payable amounting $168,000.
- S
Record the $910,000 expended on wages and benefits.
- T
Cash collections of patient accounts receivable amounted to $1,180,000. These were in settlement of patient accounts totaling $1,587,000. Contractual adjustments associated with these totaled $400,000, and price concessions totaled $7,000.
- U
Record the closing entry for net assets without donor restrictions.
- V
Record the closing entry for net assets with donor restrictions.
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