Chapter 16 – Accounting for Health Care Organizations
16-16
Ch. 16, Solutions, Exercise 16-21 (Cont’d)
c. The $5,000,000 restricted contribution would be reported as part of the
statement of changes in net assets, assuming a separate statement is
16-22. a. MILOS COUNTY HOSPITAL
1. ACCOUNTS AND NOTES RECEIVABLE 1,664,900
PATIENT SERVICE REVENUE 1,664,900
2. CASH 295,300
3. CONTRACTUAL ADJUSTMENTS 632,000
PROVISION FOR BAD DEBTS 30,200
Chapter 16 – Accounting for Health Care Organizations
16-17
Copyright ©2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Ch. 16, Solutions, Exercise 16-22 (Cont’d)
MILOS COUNTY HOSPITAL
GENERAL JOURNAL
Debits Credits
4. RESEARCH EXPENSES 200,000
5. FISCAL AND ADMINISTRATIVE SERVICE
EXPENSES 194,440
6. CASH 1,159,000
8. NURSING SERVICES EXPENSES 99,770
INVENTORY 99,770
Chapter 16 – Accounting for Health Care Organizations
16-18
Copyright ©2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Ch. 16, Solutions, Exercise 16-22 (Cont’d)
MILOS COUNTY HOSPITAL
GENERAL JOURNAL
Debits Credits
10. DEPRECIATION EXPENSE 124,000
11. Closing Entries:
PATIENT SERVICE REVENUE 1,403,500
INVESTMENT INCOME 800
REVENUE—GRANTS & CONTRIBUTIONS 200,000
REVENUE—OTHER 295,300
Chapter 16 – Accounting for Health Care Organizations
16-19
Ch. 16, Solutions, Exercise 16-22 (Cont’d)
b. Net patient service revenue would be:
16-23.
a. CHRISTINA REHABILITATION HOSPITAL
STATEMENT OF OPERATIONS
FOR YEAR ENDED SEPTEMBER 30, 2020
(000s omitted)
Chapter 16 – Accounting for Health Care Organizations
16-20
Ch. 16, Solutions, Exercise 16-23 (Cont’d)
NET ASSETS RELEASED FROM RESTRICTIONS:
SATISFACTION OF PURPOSE RESTRICTIONS 1,010
INCREASE IN NET ASSETS WITHOUT DONOR
RESTRICTIONS 4,550
NET ASSETS WITH DONOR RESTRICTIONS:
CONTRIBUTIONS FOR PROGRAMS 6,540
CONTRIBUTIONS FOR ENDOWMENT 130
Chapter 16 – Accounting for Health Care Organizations
16-21
Ch. 16, Solutions, Exercise 16-23 (Cont’d)
b. CHRISTINA REHABILITATION HOSPITAL
BALANCE SHEET
ASSETS LIMITED AS TO USE:
INVESTMENTS 49,440
PLEDGES RECEIVABLE (NET OF DISCOUNT OF $910) 2,910
INVESTMENTS 198,000
PROPERTY, PLANT, & EQUIPMENT:
ACCRUED PAYABLES 26,790
INTEREST PAYABLE 1,070
CURRENT PORTION OF BONDS PAYABLE 15,000
TOTAL CURRENT LIABILITIES 63,590
LONG-TERM LIABILITIES:
Chapter 16 – Accounting for Health Care Organizations
16-22
Ch. 16, Solutions, Exercise 16-23 (Cont’d)
NET ASSETS:
16-24. a.
EDWARDS LAKE COMMUNITY HOSPITAL
1. ACCOUNTS AND NOTES RECEIVABLE 2,979,650
2. CASH 2,960,600
ASSETS LIMITED AS TO USE⎯CASH 7,350
3. ADMINISTRATION EXPENSES 446,480
GENERAL SERVICES EXPENSES 524,360
Chapter 16 – Accounting for Health Care Organizations
16-23
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
4. NURSING SERVICES EXPENSES 140,000
GENERAL SERVICES EXPENSES 140,000
5. ASSETS LIMITED AS TO USE—INTEREST
6. ADMINISTRATION EXPENSES 49,100
GENERAL SERVICES EXPENSES 49,100
Chapter 16 – Accounting for Health Care Organizations
16-24
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
EDWARDS LAKE COMMUNITY HOSPITAL
8. UNREALIZED LOSS ON INVESTMENTS 663
ASSETS LIMITED AS TO USE⎯INVESTMENTS 663
9. Closing Entry:
PATIENT SERVICES REVENUE 3,500,900
Chapter 16 – Accounting for Health Care Organizations
16-25
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
EDWARDS LAKE COMMUNITY HOSPITAL
Debits Credits
Chapter 16 – Accounting for Health Care Organizations
16-26
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
INVENTORY 73,100
TOTAL CURRENT ASSETS 442,250
OF $1,153,000) 1,730,300
TOTAL PROPERTY, PLANT, AND EQUIPMENT 4,716,400
TOTAL ASSETS $5,412,877
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Chapter 16 – Accounting for Health Care Organizations
16-27
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
c. EDWARDS LAKE COMMUNITY HOSPITAL
STATEMENT OF OPERATIONS
Chapter 16 – Accounting for Health Care Organizations
16-28
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
c. EDWARDS LAKE COMMUNITY HOSPITAL
Chapter 16 – Accounting for Health Care Organizations
16-29
Ch. 16, Solutions, Exercise 16-24 (Cont’d)
d. EDWARDS LAKE COMMUNITY HOSPITAL
STATEMENT OF CASH FLOWS
DEPRECIATION 245,500
UNREALIZED LOSS ON INVESTMENTS 663
NET CASH PROVIDED BY OPERATING ACTIVITIES 571,650
CASH FLOWS FROM FINANCING ACTIVITIES:
PAYMENT OF BOND PRINCIPAL (500,000)
16-30
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consent of McGraw-Hill Education.
16-25.
The following is a list of modifications or corrections Danker Community Hospital
should make for its statement of operations to comply with FASB standards.
• Charity care is never recorded; therefore, it would not be recognized as an
adjustment to revenue.