ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Chapter 18, Problem 13P
To determine
Identify the correct option out of the given statements.
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A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? Choose the correct.a. $50,000b. $80,000c. $130,000d. $280,000
A not-for-profit medical center performs services in the current year at a charge of $1 million. Officials expect bad debts to be $94,000. Another $200,000 is viewed as charity care services because no collection was expected at the time of the work. What should the medical center report as net patient service revenues? Choose the correct.a. $706,000b. $800,000c. $906,000.d. $1,000,000
66. 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…
Chapter 18 Solutions
ADVANCED ACCOUNTING-LL
Ch. 18 - Prob. 1QCh. 18 - Prob. 2QCh. 18 - Prob. 3QCh. 18 - What are temporarily restricted net assets?Ch. 18 - What are permanently restricted net assets?Ch. 18 - Prob. 6QCh. 18 - Prob. 7QCh. 18 - Prob. 8QCh. 18 - Prob. 9QCh. 18 - Prob. 10Q
Ch. 18 - Prob. 11QCh. 18 - Prob. 12QCh. 18 - Prob. 13QCh. 18 - Prob. 14QCh. 18 - Prob. 15QCh. 18 - When should membership dues be considered revenue...Ch. 18 - Prob. 17QCh. 18 - Prob. 18QCh. 18 - Prob. 19QCh. 18 - Prob. 20QCh. 18 - Prob. 21QCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - A donor gives Charity 1 50,000 in cash that it...Ch. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Prob. 10PCh. 18 - Prob. 11PCh. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Prob. 14PCh. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21PCh. 18 - Prob. 22PCh. 18 - Prob. 23PCh. 18 - Prob. 24PCh. 18 - Prob. 25PCh. 18 - Prob. 26PCh. 18 - Prob. 27PCh. 18 - Prob. 28PCh. 18 - Prob. 29PCh. 18 - Prob. 30PCh. 18 - Prob. 31PCh. 18 - Prob. 32PCh. 18 - Prob. 33PCh. 18 - Prob. 34PCh. 18 - Prob. 35PCh. 18 - Prob. 36PCh. 18 - Prob. 37PCh. 18 - Prob. 38PCh. 18 - Prob. 39PCh. 18 - A private not-for-profit entity is working to...Ch. 18 - Prob. 41PCh. 18 - The University of Danville is a private...Ch. 18 - Prob. 43PCh. 18 - Prob. 44PCh. 18 - Prob. 45PCh. 18 - Prob. 46PCh. 18 - Prob. 47PCh. 18 - Prob. 48PCh. 18 - Prob. 49PCh. 18 - At the beginning of Year 1, the entity above...Ch. 18 - Prob. 51PCh. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - Prob. 54PCh. 18 - Prob. 1DYSCh. 18 - Prob. 2DYSCh. 18 - Prob. 3DYSCh. 18 - Prob. 4DYSCh. 18 - Prob. 5DYSCh. 18 - Prob. 6DYS
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- A not-for-profit medical center performs services in the current year at a charge of $1 million. Officials expect bad debts to be $94,000. Another $200,000 is viewed as charity care services because no collection was expected at the time of the work. What should the medical center report as net patient service revenues? $706,000 $800,000 $906,000. $1,000,000arrow_forwardA not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? $50,000 $80,000 $130,000 $280,000arrow_forwardA hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection. $35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice O Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000. Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0. Xarrow_forward
- A private not-for-profit health care entity provides its patients with services that would normally be charged at $1 million. However, it estimates a $200,000 reduction because of contractual adjustments. It expects another $100,000 reduction because of bad debts. Finally, the organization does not expect to collect $400,000 because this amount is deemed to be charity care. Which of the following is correct? Choose the correct.a. Patient service revenues = $1 million; net patient service revenues = $300,000.b. Patient service revenues = $1 million; net patient service revenues = $400,000. c. Patient service revenues = $600,000; net patient service revenues = $300,000.d. Patient service revenues = $600,000, net patient service evenuess = $400,000.arrow_forwardA hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection. $35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000. Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0.arrow_forward1. A hospital reports the following information: Estimated bad debts—non-charity patients $ 500,000 Contractual adjustments—third party payors 1,000,000 Direct gross billings to non-charity patients 5,000,000 Gross billings to insurance companies and Medicare/Medicaid 17,000,000 Charity care, estimated billing value 2,000,000 Charity care, cost 1,200,000 Net patient service revenue, as reported on the hospital's statement of activities, is: 2. NFP organizations like the Red Cross invest in derivatives to hedge their financial risks. How do the accounting standards for NFP hedge investments differ from the accounting standards for other NFP investments? Select one: A. There is no difference. B. Unrealized gains and losses on hedge investments are reported as changes in net assets with donor restrictions on the statement of activities, while unrealized gains and losses on other investments are not reported. C. Unrealized gains and…arrow_forward
- A private not-for-profit health care entity provides its patients with services that would normally be charged at $1 million. However, it estimates a $200,000 reduction because of contractual adjustments. It expects another $100,000 reduction because of bad debts. Finally, the organization does not expect to collect $400,000 because this amount is deemed to be charity care. Which of the following is correct? Patient service revenues = $1 million; net patient service revenues = $300,000. Patient service revenues = $1 million; net patient service revenues = $400,000. Patient service revenues = $600,000; net patient service revenues = $300,000. Patient service revenues = $600,000, net patient service revenues = $400,000.arrow_forwardProblem #1 Record the following transactions for Porter Hospital, a private, nonprofit hospital: Gross patient services revenues: $25,000,000. Billed to patients. 2. Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3. Purchased equipment by issuing a 5-year note for $200,000. 4. Received cash donations restricted for a capital building addition program, $5,100,000. 5. Incurred and paid $1,700,000 of contractor billings for the capital building program.arrow_forwardHh1. Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $500,000 in cash be set aside to meet its future debt payment. The hospital accrued $1,500,000 in patient service revenues. Charity services of $415,000 also were provided. Contractual adjustments total $535,000. An increase of $45,000 was recorded for bad debts. Recently retired nurses volunteered to assist with a spike in patient demand due to an infectious disease outbreak. The value of these services was estimated to be $50,000, and the hospital normally would have purchased these specialized services. An endowment contribution of $1,500,000 was received. Investments held by the hospital increased in fair value by $32,000. The hospital purchased $837,000 in equipment with resources that had been contributed in prior years for such a purchase. Required Prepare journal entries to record the foregoing transactions, assuming the hospital is a…arrow_forward
- The 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_forwardshak City creates a new internal service fund. To get the internal service fund started, the City's general fund loans $100,000 to the newly created internal service fund. What journal entry will be recorded in the general fund as a result of the transaction? None of these Debit cash $100,000; credit due to internal service fund $100,000 Debit due from internal service fund $100,000; credit cash $100,000 Debit transfers in/out $100,000; credit cash $100,000 Debit cash $100,000; credit transfers in/out $100,000arrow_forwardA Record the gross charges for patient services, all charged to Patient Accounts Receivable, amounting $1,675,000. 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…arrow_forward
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