ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
18th Edition
ISBN: 9781260949766
Author: RECK
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 7Q
To determine
Provide the difference in the accounting for the donor’s contribution and pledge by ascertaining that Memorial Hospital T is (a) a governmental hospital (b) not-for profit hospital.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most of its funding comes from donations and bequests. It uses the deferral method to account for contributions and an encumbrance system to control expenditures. For simplicity, UH accounts for all of its activities through an operations fund.
UH has provided the following selected transactions for the current year:
a. At the beginning of the year, UH unexpectedly received $1,000,000 from the government to purchase three monitoring machines.
UH immediately purchased the machines. Since UH purchased the machines as soon as the funds were received, it did not prepare a purchase order for them. At the end of the year, UH took depreciation of $200,000 on the machines.
b. UH's annual Christmas fundraising gala generated $3,011,000 in cash and $820,000 in pledges. Based on previous years' experiences, UH estimates that 85 percent of the pledges will be collected in the first three months…
A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Choose the correct.a. Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500 increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.
A voluntary health and welfare entity has the following expenditures:
How should the charity report these items?
a. Program service expenses of $100,000 and supporting service expenses of $160,000.
b. Program service expenses of $160,000 and supporting service expenses of $100,000.
c. Program service expenses of $170,000 and supporting service expenses of $90,000.
d. Program service expenses of $190,000 and supporting service expenses of $70,000.
Chapter 16 Solutions
ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
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
- A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Revenues of $33,500. Public support of $33,500. Public support of $32,000 and a $1,500 increase in the fund balance. Public support of $32,000 and revenue of $1,500.arrow_forward45. Which one of the following is not a required fi- nancial statement for a private voluntary health and welfare organization? a. Statement of Financial Position b. Statement of Activities and Changes in Net Assets c. Statement of Fund Balance d. Statement of Cash Flows e. Statement of Functional Expense 46. Gerlack College, a private, not-for-profit institu- tion, received a donation of $2,000,000 as a challenge grant. If the college raises an additional $2,000,000 within the next two years, it may keep the donation. If it fails, the $2,000,000 must be returned to the do- nor. How would the college record the receipt of the grant? a. Unrestricted revenue. b. Temporarily restricted revenue. c. Note to the financial statement. d. Refundable advance.arrow_forwardIntegrity Reconstructive is a private, not-for-profit hospital. The following information is available about the operations. Gross patient services charges totaled P4,500,000. Included in the above revenues are: charity services, P165,000; contractual adjustments, P400,000; and courtesy allowances, P14,000. Received marketable securities valued at P115,000 for the purchase of new diagnostic equipment. The marketable securities were sold for P124,000 and diagnostic equipment was purchased at a cost of P138,000. Revenue from the hospital gift shop was P31,000 and from the cafeteria revenues were P160,000. Incurred and paid nursing service costs of P1,000,000 and general service costs of P500,000. How much is the net patient service revenue?arrow_forward
- A local private not-for-profit health care entity (Rochester Medical) incurred the following transactions during the current year. The entity has one program service (health care) and two supporting services (fundraising and administrative). The board of governors for Rochester Medical (RM) announces that $160,000 in previously unrestricted cash will be used in the near future to acquire equipment. These funds are invested until the purchase eventually occurs. RM receives a donation of $80,000 in cash with the stipulation that the money be invested in U.S. government bonds. All subsequent income derived from this investment must be paid to supplement nursing salaries. RM spends $27,000 in cash to acquire medicines. RM had received this money during the previous year. The donor had specified that it had to be used for medicines. RM charges patients $2 million. These amounts are the responsibility of government programs and insurance companies. These third-party payors will receive…arrow_forwardA local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.a. The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs.b. Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries. c. Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose.d. Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors.e. Calculated depreciation expense of $38,000.f. Received interest income of $15,000 on the investments the board acquired in…arrow_forwardIntegrity Reconstructive is a private, not-for-profit hospital. The following information is available about the operations. Gross patient services charges totaled P4,500,000. Included in the above revenues are: charity services, P165,000; contractual adjustments, P400,000; and courtesy allowances, P14,000. Received marketable securities valued at P115,000 for the purchase of new diagnostic equipment. The marketable securities were sold for P124,000 and diagnostic equipment was purchased at a cost of P138,000. Revenue from the hospital gift shop was P31,000 and from the cafeteria revenues were P160,000. Incurred and paid nursing service costs of P1,000,000 and general service costs of P500,000. How much will be reported as excess of revenues over expenses in the hospital’s statement of operations?arrow_forward
- A local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets. The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs. Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries. Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose. Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors. Calculated depreciation expense of $38,000. Received interest income of $15,000 on the investments the board acquired in transaction (a) Estimated that…arrow_forwardTo send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? No part of the $100,000 can be reported as a program service expense. Some part of the $100,000 must be reported as a program service expense. No authoritative guidance exists, so the organization can allocate the cost as it believes best. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.arrow_forwardRecord 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…arrow_forward
- Theodore County uses a General Fund, a Special Revenue Fund, and an Enterprise Fund. The Special Revenue Fund is financed by a grant from the state to provide care for the elderly. The Enterprise Fund provides bus service both to the public and to government agencies. Prepare entries to record these transactions. Identify the funds involved in each case. a. The Enterprise Fund bills the Special Revenue Fund $15,000 for bus service provided to the elderly. b. The General Fund receives an electricity bill for $20,000 and prepares a voucher to pay the bill. The General Fund then bills the Special Revenue Fund for $3,000, representing the portion of the electricity bill applicable to the senior citizens building. C. The Enterprise Fund is short of cash to pay its bills. The General Fund lends the Enterprise Fund $50,000 in cash, which will be repaid before the end of the year. d. The General Fund pays cash of $100,000 to the Enterprise Fund as a subsidy to help meet the operating costs of…arrow_forwardTo send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? Choose the correct.a. No part of the $100,000 can be reported as a program service expense.b. Some part of the $100,000 must be reported as a program service expense.c. No authoritative guidance exists, so the organization can allocate the cost as it believes best.d. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.arrow_forwardRecord the following transactions on the books of the private not-for-profit Mansoor Hospital. The Hospital billed patients AED880,000 for services rendered. Of this amount, 5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total AED125,000. The Hospital received AED640,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 6% are expected to be uncollectible. Charity care in the amount of AED38,000 was performed on an indigent patient. The Hospital collected AED684,000 for the services performed in (a) above. Actual contractual adjustments for these services amounted to AED135,000. AED32,000 of receivables were identified as uncollectible and written off.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:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education