Health care revenues: Revenues and expenses gains, and losses increases or decreases the net assets of health care entity. Revenues and gains may increase unrestricted net assets, temporarily restricted net assets, or permanently restricted net assets. Revenue controlling accounts are of three types as follows The major revenue account for a hospital is operating service revenue, in which the gross revenue earned are recorded on accrual basis. following are the revenues recorded in this account Other operating revenue, which records revenue form services other than health care provided to patients and residents. Other operating revenue would include. The revenue which is not directly related to an entities principle revenue is non-operating revenue. These items include unrestricted and donor restricted pledges, gifts or grants, unrestricted income from endowment funds, and maturing property. To record: All the events in the books of B Hospital.

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A 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…

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Chapter 19, Problem 9E

To determine

Concept Introduction:

Health care revenues:

Revenues and expenses gains, and losses increases or decreases the net assets of health care entity. Revenues and gains may increase unrestricted net assets, temporarily restricted net assets, or permanently restricted net assets. Revenue controlling accounts are of three types as follows

The major revenue account for a hospital is operating service revenue, in which the gross revenue earned are recorded on accrual basis. following are the revenues recorded in this account

Other operating revenue, which records revenue form services other than health care provided to patients and residents. Other operating revenue would include.

The revenue which is not directly related to an entities principle revenue is non-operating revenue. These items include unrestricted and donor restricted pledges, gifts or grants, unrestricted income from endowment funds, and maturing property.

To record:All the events in the books of B Hospital.

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A 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…

Record the following events of Brooks Hospital:1. Patients were billed for the following gross charges:Room and board . . . . . . . . . . . . $400,000Physicians’ care. . . . . . . . . . . . . 350,000Laboratory and radiology . . . . . 110,0002. A donation of drugs with a fair value of $20,000 was received from a doctor. The drugs are normally purchased.3. Revenues were reported from:Newsstand and snack bar. . . . . $13,200Parking lot charges . . . . . . . . . . 2,200Vending machines. . . . . . . . . . . 9,8004. A charity allowance of $22,000 was granted to indigent patients.5. Contractual adjustments granted to patients forMedicare charges totaled $108,000.6. The hospital recorded an increase in the provision of $26,000 for uncollectible receivables.

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