Refer to the information below regarding Lakeland Medical Center to answer the following questions: Lakeland Medical Center Financial Statement Description Amount Allowance for doubtful accounts $110 Cash $1,400 Accounts receivable $2,330 Accounts payable $1,110 Service revenue $14,600 Other assets $350 Cost of services sold and other expenses $12,700 Notes payable $3,280 How much net income did Lakeland earn for the month? Enter answer here. Show two ways Lakeland can report receivables on its classified balance sheet.

Refer to the information below regarding Lakeland Medical Center to answer the following questions: Lakeland Medical Center Financial Statement Description Amount Allowance for doubtful accounts $110 Cash $1,400 Accounts receivable $2,330 Accounts payable $1,110 Service revenue $14,600 Other assets $350 Cost of services sold and other expenses $12,700 Notes payable $3,280 How much net income did Lakeland earn for the month? Enter answer here. Show two ways Lakeland can report receivables on its classified balance sheet.

Name: Refer to the information below regarding Lakeland Medical Center to an
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Description: Refer to the information below regarding Lakeland Medical Center to answer the following questions: Lakeland Medical Center Financial StatementDescriptionAmountAllowance for doubtful accounts$110Cash$1,400Accounts receivable$2,330Accounts payable$1,1

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 28RQSC

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A hospital provided $750,000 of billable services to noncapitated patients. Payment has not yet been received. When the transaction is recorded on the general ledger, cash (an asset) is increased by $750,000 and patient revenue is decreased by $750,000. True False
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The basis for recognizing patient care revenue is not always obvious. In a particular month Northwest Medical Clinic reported the following: 1. It provided direct care services to patients, billing them $400,000. Of this amount it received $120,000 in cash, but as a consequence of bad debts it expects to collect a total of only $330,000. 2. It provided direct care to patients covered by insurance and who are members of various group health plans for which, at standard rates, it would have billed $650,000. However, owing to contractual arrangements with the payers, it actually billed them for, and expects to collect, only $480,000. 3. It provided charity care for which it would have billed, at standard rates, $82,000. 4. It received capitation fees of $1,400,000 from health care plans and provided services to members of those plans for which it would have billed, at standard rates, $1,600,000. Prepare appropriate journal entries to recognize revenue.
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