Loose-leaf For Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781260190083
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Daniel Neely
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 22EP
a.
To determine
Prepare
b.
To determine
Compute the net service revenue that is to be reported on the statement of revenues, expenses and changes in net position.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).
Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies.
Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses.
Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).
An unconditional contributionPage 687 of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer’s patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.
A total of $965,000 was received from…
Prepare general journal form for the following transactions of Bothwell Regional Hospital, a nongovernmental not-for-profit hospital. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.)
For the month just ended, the hospital received in cash $8,000 from the hospital's gift shop sales and received donated medicines with a fair value of $47,000. These medicines are of the type the hospital normally would purchase.
The hospital's finance officer, in compliance with the directive of the governing board, invested $600,000 of operating cash in certificates of deposit to be held for future purchases of equipment.
New equipment costing $750,000 was purchased from money given to the hospital by a donor in a prior year to be held until needed for equipment purchases.
A federal grant was received in cash in the amount of $400,000 to be used for heart research. During the current year, only $50,000 was spent for this research…
Record in general journal form the following selected transactions for Meridian Hospital, a nongovernmental not for-profit institution. (or
no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Gross charges accrued for patient services rendered during the period amounted to $7,870,000, of which $350,000 represented
charity care for indigent patients
2. During the year the implicit price concessions for individual payors was determined to be $190,000 and contractual adjustments
amounted to S435,000.
3. A wealthy donor donated $2.000,000 in cash to construct a new cardiology wing on the hospital.
4. During the yeat, the new cardiolody wing (see item 3) was one-half completed at a cost of $1.000.000.
View transaction list
Journal entry worksheet
Record the $190,000 implicit price concessions for individual payers and
$435,000 contractual adjustments.
Note Enter debits befare credits
Transaction
General Journal
Debit
Credi
02…
Chapter 16 Solutions
Loose-leaf For Accounting For Governmental & Nonprofit Entities
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11QCh. 16 - Prob. 12CCh. 16 - Prob. 17.1EPCh. 16 - Prob. 17.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 17.4EPCh. 16 - Prob. 17.5EPCh. 16 - Prob. 17.6EPCh. 16 - Prob. 17.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 17.9EPCh. 16 - Prob. 17.10EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - The Kyle Sports Medicine facility is a...Ch. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EPCh. 16 - Prob. 24EPCh. 16 - Prob. 25EP
Knowledge Booster
Similar questions
- Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts. Note: Each transaction may involve more than one fund. The appropriate fund must be identified to receive credit. The central motor pool billed the General Fund for $33,000 in services. The General Fund previously recorded an encumbrance for the same amount. The city owned landfill purchased two tractors for a total of $40,000. The related invoice was paid. The City entered into a contract with Maker’s Construction to build a civic center for $3 million. The General Fund paid the central motor pool invoice (item 1). The landfill issued $4 million in revenue bonds for renovations. The landfill recorded daily fee receipts of $14,000. Maker’s Construction issued a progress billing for $350,000. The contract provides for a 10% retained percentage. The landfill sold an old tractor for $5,000…arrow_forwardThe government health center purchases an ambulance amounting to RO 12,000. Which among the following statement is true for recording the ambulance in government accounting books? a. Treated as income and shown in the statement of revenue and expenditure b. Treated as expenditure for the period and not shown in the statement of Assets and Liabilities c. Shown in the statement of assets and liabilities at its market value d. Shown in the statement of assets and liabilities at its written down valuearrow_forwardRecord the following transactions on the books of St. Marie's Hospital, a private not-for-profit hospital. (a) The Hospital billed patients $692,000 for services rendered. Of this amount, 5% is expected to be uncollectible due to implicit price concessions. Contractual adjustments with insurance companies are expected to total $103,000. (b) The Hospital received $800,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 7% are expected to be uncollectible. (c) Charity care in the amount of $41,000 (at standard charges) was performed on an indigent patient. (d) The Hospital collected $550,900 for the services performed in (1) above. Actual contractual adjustments for these services amounted to $106,400 15,490 of receivables were identified as uncollectible and written off.arrow_forward
- 1. Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following information Ministry of Finance made an appropriation of OMRIS00,000 to College of Medicine. Jan I Jan 10 The College issued a purchase order, for medieal supplies (OMR80,000) and two latest machineries for the Surgical department (OMRI 50,000 each) Feb 1 General operating expenditure incurred and paid OMR15,000 The college received 40% of the supplies along with a voucher of OMR30,000. March 1 The supplier delivery one machinery along with a voucher OMRI SO,000 March 1S The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount ofr OMR500,000 is allocated towards the contract. The work is expected to be completed by the end of the year. April Construction is certified to complete 10% and the contractor has submited a voucher for OMRS0,o00. Payment is made based on the voucher. May 10 June 1 50% of the supplies ordered on January…arrow_forwardFor each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected. 1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance 2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month. 3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center. 4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town. 5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund. 6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…arrow_forwardFor each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected. 1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance 2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month. 3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center. 4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town. 5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund. 6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…arrow_forward
- Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following information 1. Ministry of Finance made an appropriation of OMR1500,000 to College of Medicine. Jan 1 Jan 10 The College issued a purchase order, for medical supplies (OMR80,000) and two latest machineries for the Surgical department (OMR150,000 each) Feb 1 General operating expenditure incurred and paid OMR15,000 March 1 The college received 40% of the supplies along with a voucher of OMR30,000. The supplier delivery one machinery along with a voucher OMR150,000 March 15 The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR500,000 is allocated towards the contract. The work is expected to be completed by the end of the year. April Construction is certified to complete 10% and the contractor has submited a voucher for OMR50,000. Payment is made based on the voucher. May 10 50% of the supplies ordered on January 10 was…arrow_forward66. A private not-for-profit hospital provided $150,000 in charity care for the current year. The hospital should report this charity care as a. Net patient service revenue of $150,000 and pa- tient care expense of $150,000. b. Net patient service revenue of $150,000 on the statement of operations. c. Only in the notes to the financial statements. d. As an unpaid accounts receivable on the balance sheet. 67. The Johnson Hospital, a private not-for-profit hospital, received the following revenues in the cur- rent year: Proceeds from sales of the Hospital's flower shop Dividends and interest revenue not restricted $60,000 $20,000 Cash contributions for the renovation of the children's ward in the Hospital $200,000 Which of these amounts should be reported as other revenues and gains (other revenue) on the Statement of Operations? a. $280,000 b. $60,000 c. $80,000 d. $260,000 68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator revenues and gains…arrow_forwardA government health care district incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 and expenditures of $5,550 were appropriated. During the year, the following transactions incurred: the government health care district collected $5,500 in fees, grants, taxes, and other revenues It ordered goods and services for $3,000. it received and paid for $2,800 of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year. It incurred $2500 in other expenditures for goods and services that had not been encumbered. What is total fund balance at year end? $500 $300 $200 None of abovearrow_forward
- 1. Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following information Jan 1 Jan 10 Feb 1 March 1 March 15 April May 10 June 1 July 10 August Instruction: Ministry of Finance made an appropriation of OMR1500,000 to CollegeofMedicine. The College issued a purchase order, for medical supplies (OMR80,000) and two latest machineries for the Surgical department (OMR150,000 each) General operating expenditure incurred and paid OMR15,000 The college received 40% of the supplies along with a voucher of OMR30,000. The supplier delivery one machinery along with a voucher O M R 1 5 0 ,0 0 0 The college entered into a contract with MHD Consulting for constructing a recreational center in the college. An amount of OMR500,000 is allocated towards the contract. The work is expected to be completed by the end of the year. Construction is certified to complete 10% and the contractor has submited a voucher for OMR50,000. Payment is made based on the voucher. 50% of…arrow_forwardHeartland Hospital is a private hospital with a June 30 fiscal year end. Prepare the journal entries in good form. 1 $520,000 was received in pledges for temporarily restricted purposes. An allowance for uncollectible pledges was set up for $30,000. 2 Patient service revenue amounted to $3,130,000, all recorded on account. Contractual adjustments were recorded at 1,405,000. Uncollectible accounts are estmated at $240,000. 3 Other revenue (cafeteria, parking fees, etc) totaled $268,000, all received in cash. 4 Temporarily donor restricted net assets of 2,600,000 was expended for equipment. The Hospital's policy is to record all property, plant, and equipment as unrestricted. 5 Unrestricted gifts and bequests were received in cash for $340,000. 6 Patient accounts in the amount of $295,000 were written off. 7 Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $75,000 and was received in cash. 8 Cash collected on…arrow_forward1. A not-for-profit hospital performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work. Additionally, officials expect another $94,000 to be bad debts. What should the hospital report as net patient service revenues? Select one: a.$906,000 b.$1,000,000 c.$706,000 d.$800,000 2. In the accounting for health care providers, what are third-party payors? Select one: a.Friends and relatives who pay the medical costs of a patient. b.Doctors who reduce fees for indigent patients. c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States. d.Charities that supply medicines to hospitals and other health care providers. 3.What is a contractual adjustment? Select one: a.A year-end journal entry to recognize all of a health care entity's remaining receivables. b.An increase in a patient's…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education