ACCT 567 Not-for-Profit Hospital Problem 17–8

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ACCT 567 Not-for-Profit Hospital Problem 17–8
Record in general journal form the effect of the following transactions during the fiscal year ended December 31…

Description

ACCT 567 Not-for-Profit Hospital Problem 17–8

ACCT 567 Not-for-Profit Hospital Problem 17–8

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Not-for-Profit Hospital – Phelps Community Hospital Problem 17–8

The Phelps Community Hospital balance sheet as of December 31, 2010, follows.

Required

  1. Record in general journal form the effect of the following transactions during the fiscal year ended December 31, 2011, assuming that Phelps Community Hospital is a not-for-profit hospital.

(1)     Summary of revenue journal:

(2)     Summary of cash receipts journal:

(3)     Purchases journal:

(4)     Payroll journal:

(5)     Summary of cash payments journal:

(6)     The following additional information relates to assets limited as to use:

(a)  $10,000 in CDs matured on which $590 in interest was earned.

(b)  $30,000 was reinvested in CDs.

(c)  $12,300 in equipment was purchased.

(7)     Depreciation charges for the year amounted to $117,000 for the buildings and $128,500 for equipment.

(8)     Other information:

(a)  Provision for uncollectible receivables was increased by $3,800.

(b)  Supplies inventory:

(c)  Portion of mortgage payable due within one year, $500,000.

(9)     Assume that there was no change in fair value of investments at year-end.

(10)   Provisions for bad debts, interest expense, and depreciation expense were allocated to functional expense accounts in proportion to their preallocation balances. Nominal accounts were closed.

(11)   Reflecting the net increase in Assets Limited as to Use of $25,640 (see transactions 2, 5, and 6), record the increase in Net Assets—Unrestricted, Designated for Plant Replacement.

  1. Prepare a balance sheet as of December 31, 2011.
  2. Prepare a statement of operations for the year ended December 31, 2011.

 PHELPS COMMUNITY HOSPITAL

GENERAL JOURNAL ENTRIES

FISCAL YEAR 2011

Debits            Credits

  1. ACCOUNTS AND NOTES RECEIVABLE                       3,422,900

CONTRACTUAL ADJUSTMENTS                                                162,000

PATIENT SERVICES REVENUE                                                                        3,584,900

 

  1. CASH                                                                                   3,820,600

ASSETS LIMITED AS TO USECASH                                           7,350

ACCOUNTS AND NOTES RECEIVABLE                                                                     …..