LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
13th Edition
ISBN: 9781259444951
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 36P
To determine
Report the transactions for the not-for-profit entity “A”.
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Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year ended December 31, 2017.
However, Lennon did not expect to collect this entire amount because it deemed $1.4 million to be charity care and estimated
contractual adjustments to be $800,000.
During 2017, Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $4,00O. Harrison notified Lennon
that it was donating the supplies to the hospital.
Lennon is a private not-for-profit entity:
a. How much should Lennon record as patient service revenue? (Enter your answer in millions rounded to 1 decimal place.)
b. How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 1 decimal place.)
c. How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.)
a.
Patient service revenue
million
b
Net patient service revenue
million
C.
Donation of the supplies
During the year ended December 31, 2017, Anderson Hospital (operated as a private not-for-profit entity) received and incurred the following:Fair value of donated medicines . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . $ 54,000Fair value of donated services (replaced salaried workers) .. . .38,000Fair value of additional donated services (did not replace salaried workers) . . . 11,000Interest income . . . . . . . . . . . . . 23,000Regular charges to patients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,000Charity care . . . . . . . . . . . . . . . 210,000Provision for bad debts . . . . . . 66,000How should this hospital report each of these items?
White Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital’s calendar year ending December 31, 2019
journal entries to record the transactions listed in 1 through 14. below
Third-parties payers and direct-pay patients were billed $6,500,000 at the hospital's established billing rates
The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients
The hospital estimated contractual adjustments for the year of $1,600,000
The hospital originally estimated uncollectible amounts from direct-pay patients to be $250,000 (recall that original estimated uncollectible amounts reduce revenue; only estimates specific to an individual patient are reported as bad debt expense).
The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000
The hospital received payments from third-party payers…
Chapter 18 Solutions
LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
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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