47. For May 2011, Carlington Hospital’s charges for patient services were
$608,000, of which 80% was billed to third-party payors.
Required:
Prepare the journal entry to accrue patient charges for the month.
48. For the month of December 2011, patient charges at Northfield Hospital (a
not-for-profit hospital) were $2,720,000. Third-party payors were billed
$1,800,000.
Prepare the necessary journal entry to record the revenue and receivables.
49. For the month of December 2011, patient charges at Northfield Hospital (a
not-for-profit hospital) were $2,720,000. Third-party payors were billed
$1,800,000.
$520,000 of the $2,720,000 was expected to be uncollectible.
Required:
Prepare the necessary journal entry to record the anticipated uncollectible
amount.
50. For the month of December 2011, patient charges at Northfield Hospital (a
not-for-profit hospital) were $2,720,000. Third-party payors were billed
$1,800,000.
In this month, there were several patients that had no health insurance and due
to their low income level, the hospital decided that $85,000 of receivables would
not be collectible.
Required:
Prepare the necessary journal entry to reflect the decision to consider the
$85,000 as charity care.
51. For the month of December 2011, patient charges at Northfield Hospital (a
not-for-profit hospital) were $2,720,000. Third-party payors were billed
$1,800,000.
The hospital estimated that contractual adjustments would reduce the amount
collected from third-party payors to $1,710,000.
Required:
Prepare the necessary journal entry to record the contractual adjustments.
52. Dura Foundation, a voluntary health and welfare organization dedicated to
finding medical cures and supported by contributions from the general public,
included the following costs in its Statement of Functional Expenses for the year
ended December 31, 2011:
What should Dura Foundation report as program service expenses?
53. Dura Foundation, a voluntary health and welfare organization dedicated to
finding medical cures and supported by contributions from the general public,
included the following costs in its Statement of Functional Expenses for the year
ended December 31, 2011:
What should Dura Foundation report as supporting service expenses?
54. During 2011, the Garfield Humane Society, a voluntary health and welfare
organization, received cash donations of $892,000 and membership dues of
$62,000. A member of the Humane Society donated services valued at $8,000
that would otherwise have been performed by a paid staff member. A pet food
manufacturer donated dog food valued at $16,400. The Humane Society received
a gift of $140,000, to be used in building a new animal shelter. Also during 2011,
investments held by the Humane Society earned interest of $2,000.
Required:
Prepare a schedule showing the amount that the Garfield Humane Society
should have recorded for public support for 2011.
55. The Yelton Center is a voluntary health and welfare organization. During
2010, unrestricted pledges of $780,000 were received by the center, sixty percent
of which were payable in 2010, with the remainder payable in 2011 (for use in
2011). Officials estimated that fifteen percent of these pledges will be
uncollectible.
Required:
How much should the Yelton Center report as revenue for 2010?
56. A local social worker, earning $12 per hour working for the state
government, contributed 600 hours of time at no charge to the Yelton Center, a
voluntary health and welfare organization. If not for these donated services, an
additional staff person would have been hired by the organization.
Required:
How should the Yelton Center record the contributed services?
57. A not-for-profit organization receives a computer as a donation (valued at
$2,000). Prepare the journal entry for the transaction.
58. A not-for-profit organization (Charity A) raises money for other charitable
organizations. Charity A receives $10,000 to distribute to Charity B.
Assume there are no donor rights to revoke or redirect the gift.
Prepare the journal entries for Charity A when the gift is received, and for Charity
A and Charity B when the gift is distributed.
59. A not-for-profit organization (Charity A) raises money for other charitable
organizations. Charity A receives $10,000 to distribute to Charity B.
Assume that the donor retains the right to revoke or redirect the gift.
Prepare the journal entries for Charity A and Charity B. The entries should be for
the gift when received by Charity A, and when the gift is distributed for Charity
B.
60. A not-for-profit organization provides the following information for the
year:
Required:
Prepare the journal entries for these transactions.
61. Wakefield Home is a private not-for-profit healthcare organization offering
services for a fee. In the first quarter of 2011, Wakefield Home rendered services
of $300,000 to patients. Of this amount 75% will be paid by patients, and $25,000
will be adjusted based on estimated insurance agreements. The remaining
amount is to be paid by third party insurance providers.
Record the journal entries that reflect all of this information.
62. Wakefield Home is a private not-for-profit healthcare organization offering
services for a fee. In the first quarter of 2011, Wakefield Home rendered services
of $300,000 to patients. Of this amount 75% will be paid by patients, and $25,000
will be adjusted based on estimated insurance agreements. The remaining
amount is to be paid by third party insurance providers.
A local business donated medical supplies to Wakefield with a value of $40,000.
Prepare the journal entry for the receipt of these supplies.
63. Wakefield Home is a private not-for-profit healthcare organization offering
services for a fee. In the first quarter of 2011, Wakefield Home rendered services
of $300,000 to patients. Of this amount 75% will be paid by patients, and $25,000
will be adjusted based on estimated insurance agreements. The remaining
amount is to be paid by third party insurance providers.
64. Wakefield Home is a private not-for-profit healthcare organization offering
services for a fee. The home has an endowment and the income may be used to
sponsor families that are unable to pay for services but the principal must be
preserved. In addition, various fundraising activities take place during the year.
When the Home held its annual Holiday fund raiser, pledges of $50,000 were
received. The administration expected 5% to be uncollectible.
In addition, income of $10,000 was received from the endowment to sponsor
families.
Prepare the journal entries for these transactions.