11. Santa Clara Hospital, a private nonprofit hospital, earned P250,000 revenues from its gift shoplocated at the lobby and spent P50,000 on research during the year ended December 31, 2016.The P50,000 spent on research was part of a P75,000 contribution received during December of2013 from a donor who stipulated that the donation be used for medical research. Assume noneof the gift shop revenues were spent in 2016. For the year ended December 31, 2016 what wasthe increase in unrestricted net assets from the events that occurred during 2016?a. P300,000b. P200,000c. P250,000d. P275,00012. Luneta Park, a nonprofit organization, received contributions restricted for research totalingP50,000 in 2016. Assume the P50,000 was not expensed in 2016. These contributions were usedto purchase P35,000 of research equipment in 2016. As a result of these transactions, for theyear ended December 31, 2016. Luneta Park will report, on its statement of activities:a. P15,000 increase in temporarily restricted net assets.b. P50,000 increase in temporarily restricted net assets.c. P35,000 increase in unrestricted net assets.d. P15,000 increase in unrestricted net assets.

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

11. Santa Clara Hospital, a private nonprofit hospital, earned P250,000 revenues from its gift shop located at the lobby and spent P50,000 on research during the year ended December 31, 2016. The P50,000 spent on research was part of a P75,000 contribution received during December of 2013 from a donor who stipulated that the donation be used for medical research. Assume none of the gift shop revenues were spent in 2016. For the year ended December 31, 2016 what was the increase in unrestricted net assets from the events that occurred during 2016? a. P300,000 b. P200,000 c. P250,000 d. P275,000

11. Santa Clara Hospital, a private nonprofit hospital, earned P250,000 revenues from its gift shop located at the lobby and spent P50,000 on research during the year ended December 31, 2016. The P50,000 spent on research was part of a P75,000 contribution received during December of 2013 from a donor who stipulated that the donation be used for medical research. Assume none of the gift shop revenues were spent in 2016. For the year ended December 31, 2016 what was the increase in unrestricted net assets from the events that occurred during 2016? a. P300,000 b. P200,000 c. P250,000 d. P275,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Following are several transactions involving a university. In the current fiscal year, the…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: The Open Museum is an exempt organization that operates a gift shop. The museum’s annual operations…

A: Unrelated business income: It is the income that is generated from the regular carried activities of…

Q: On January 1, 2014, Valiant Company received a Government grant of P60,000,000 to compensate for the…

A: solution: On January 1, 2014, Valiant Company received a Government grant of P60,000,000 to…

Q: Record the following transactions on the books of St. Marie's Hospital, a private not-for-pr (a) The…

A: Journal entries are the primary records in accounting that detail a company's or organization's…

Q: During its current fiscal year, Evanston General Hospital, a not-for-profit health care…

Q: For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for…

A: The objective of the question is to calculate the net revenue from tuition and fees that should be…

Q: On January 2, 2011, Brand Company received a grant P60,000,000 to compensate if for cost it incurred…

A: The grant is the amount which a company receives from the government to carry out certain projects…

Q: St. Matthew Hospital, a private 40-bed hospital in Bataan province, presented the following data for…

A: Gross income = Gross receipts from patient & laboratory + Income earned from unrelated…

Q: December 31, 2020, the following transactions occurred. (INVOLVED COMPANY) 1) A business donated…

A: Given, Rent free office space = 35,000 a year

Q: Under Lennon Hospital’s rate structure, it earned patient service revenue of $9 million for the year…

A: The not-for-profit organizations are the organizations who provides services for the public…

Q: 17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in…

A: Solution Concept As per the provision of PAS 20 , The grant received to compensate for its cost…

Q: Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year…

A: Service revenue refers to the company's revenues from the services it delivers to its customers.…

Q: The entity will incur such costs at 2,000,000 for 2017, 4,000,000 for 2018, 6,000,000 for 2019,…

A: As per provisions government grant should be recognized in profit and loss on a systematic basis…

Q: nerine College, a private 1 P5,000,000 from alumni for construction of a new wing on the science…

A: Restricted Funds These are the funds that are received by a NPO for a specific purpose. So, these…

Q: As of July 1, 2017, the Village of Boiling Springs decided to purchase a privately operated swimming…

A: The Statement of Revenues, Expenses, and Changes in Fund Net Position is a financial statement that…

Q: Palestine College, a not-for-profit institution, engaged in the following transactions during its…

A: Palestine College, a non profit institution Fiscal year ending 30.06.2018 1. College collected…

Q: low are several transactions involving a private, not-for-profit university. 1. The university…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Question

11. Santa Clara Hospital, a private nonprofit hospital, earned P250,000 revenues from its gift shop
located at the lobby and spent P50,000 on research during the year ended December 31, 2016.
The P50,000 spent on research was part of a P75,000 contribution received during December of
2013 from a donor who stipulated that the donation be used for medical research. Assume none
of the gift shop revenues were spent in 2016. For the year ended December 31, 2016 what was
the increase in unrestricted net assets from the events that occurred during 2016?
a. P300,000
b. P200,000
c. P250,000
d. P275,000
12. Luneta Park, a nonprofit organization, received contributions restricted for research totaling
P50,000 in 2016. Assume the P50,000 was not expensed in 2016. These contributions were used
to purchase P35,000 of research equipment in 2016. As a result of these transactions, for the
year ended December 31, 2016. Luneta Park will report, on its statement of activities:
a. P15,000 increase in temporarily restricted net assets.
b. P50,000 increase in temporarily restricted net assets.
c. P35,000 increase in unrestricted net assets.
d. P15,000 increase in unrestricted net assets.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Catherine College, a private not-for-profit college, received the following contributions during 2017: I. P5,000,000 from alumni for construction of a new wing on the science building to be constructed in 2018. II. P 1,000,000 from a donor who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. As of December 31, 2017, earnings from Investments amounted to P50,000. Page 13 For the year ended December 31, 2017, what amount of these contributions should be reported as temporarily restricted revenues on the statement of activities? P 50,000 b. P 5,050,000 c. P5,000,000 d. P6,050,000 a.
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
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 $4,000. Harrison notified Lennon that it was donating the supplies to the hospital. Lennon is a private not-for-profit entity. How much should Lennon record as patient service revenue and how much as net patient service revenue? How should Lennon record the donation of the supplies?
On January 1, 2017, Humble company received a government grant of 60,000,000 to compensate for costs to be incurred in planting trees over a period of 5 years. The entity will incur such costs at 2,000,000 for 2017, 4,000,000 for 2018, 6,000,000 for 2019, 8,000,000 for 2020, and 10,000,000 for 2021. What amount of income from the government grant is recognized for 2017?
On January 1, 2014, Valiant Company received a Government grant of P60,000,000 to compensate for the cost to be incurred in planting trees over a period of 5 years. Valiant Company will incur such cost at P2,000,000 for 2014, P4,000,000 for 2015, P6,000,000 for 2016, P8,000,000 for 2017, and P10,000,000 for 2018. What amount of income from the government grant is recognized for 2015?
Hw.71.
1
The following transactions occurred during the year. Record these transactions. HHL took out a long-term loan for $3 million. b. HHL purchased $1 million in inventory with cash. HHL purchased equipment that cost $150,000 on account. The equipment is expected to last 15 years and has no salvage value. $540,865,000 (net of allowances and charity care) was billed for patient services. The hospital estimates that 5% of these bills will be bad debt. $875,000 of inventory was used. f. Donations of $400,000 were received in cash. HHL pays in cash for a 2-year malpractice insurance premium at a cost of $5 million. One-half of the premium is for next year, and the other is for the following year. HHL pays $12,560,000 in accounts payable. HHL workers earned $259 million in wages for the year. The hospital paid out $282 million in cash. It also paid out $60 million in benefits, all in cash. The equipment purchased in transaction c was paid for in cash. $370,500,000 from bills sent to patients…
As of July 1, 2017, the Village of Boiling Springs decided to purchase a privately operated swimming pool and to create a swimming pool (enterprise) fund. During the year, the following transactions occurred: A permanent contribution of $600,000 was received from the general fund. b.Revenue bonds were sold at par in the amount of $1,200,000. c.Several items were purchased for cash, with a cost breakdown as follows: land, $300,000; building, $400,000, land improvement, $400,000; equipment, $200,000; and supplies, $150,000. d.Charges for services amounted to $600,000, all received in cash. Cash expenses included salaries of $200,000; utilities of $100,000; and interest of $72,000. f.Supplies were consumed in the amount of $120,000. Depreciation was recorded as follows: building, $20,000, land improvement, $20,000; and equipment, $20,000. The books were closed. Close all accounts to net position. Required: Prepare a Statement of Revenues, Expenses, and Changes in Fund Net…
2a
For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for tuition and fees. Included in this amount were $300,000 of tuition remissions awarded to graduate teaching assistants and $150,000 of scholarships awarded to undergraduate students. Tuition and fees totaling $3,550,000 were collected during the year ended June 30, 20X9. What amount should be reported in the fund without donor restrictions as net revenue from tuition and fees for the year ended June 30, 20X9?
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1). An unconditional contributionPage 687 of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer’s patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. A total of $965,000 was received from…