During 2024, the following transactions were recorded by the Port Hudson Community Hospital, a private-sector not-for-profit institution: 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,661,000. Estimated contractual adjustments with third-party payors amounted to $411,000, and the hospital estimated implicit price concessions would total 35,200. 2. Charity services, not included in transaction 1, would amount to $70,000 had billings been made at gross amounts. 3. Other revenues received in cash were parking lot, $22,000, cafeteria, $34,200; gift shop, $5,800. 4. Cash gifts restricted by the donor for programs amounted to $27,700 for the year. During the year, $53,600 was expended for technician salaries supporting the program identified by the donor (Debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $53,200 for principal and $30,400 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $44,800 and unrestricted income of $37,500 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating-income.) 7. New equipment, costing $285,000, was acquired using donor-restricted cash that was on hand at the beginning of the year. 8. An old piece of lab equipment that originally cost $70,000 and had an undepreciated cost of $14,000 was sold for $9,000 cash. 9. At the end of 2024, pledges (restricted as to purpose) were received in the amount of $52,000. These are intended to be received and expended in 2025. 10. Cash contributions were received from donors restricted for plant acquisition, $171,000. 11. Bills were received for the following items: utilities, $141,600, and insurance, $81,600. These will be paid in January of 2025. 12 Depreciation of plant and equipment amounted to $186,000. 13. Cash payments on accounts payable amounted to $173,400. Another $886,000 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,184,000. These were in settlement of patient accounts totaling $1,614,000. Contractual adjustments associated with these totaled $424,000, and price concessions totaled $6,000. 15. Closing entries were prepared. Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital. b. Prepare a Statement of Operations for the Port Hudson Community Hospital for the year ended December 31, 2024. c. Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2024 Assume beginning net assets are $7,120,000. Answer is not complete.. Complete this question by entering your answers in the tabs below. Required A. Required B Required C Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2024. Assume beginning net assets are $7,120,000. Note: Loss or Negative amounts should be indicated by a minus sign. PORT HUDSON COMMUNITY HOSPITAL Statement of Changes in Net Assets For the Year Ended December 31, 2024 Net Assets without Donor Restrictions: Excess of Revenues Over Expenses Net Assets Released From Restrictions: Satisfaction of property plant and equipment restrictions Loss on Sale of Equipment Increase in Net Assets without Donor Restrictions Net Assets with Donor Restrictions: Contribution Revenue Net Assets Released From Restrictions Decrease in Net Assets with Donor Restrictions Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year S 7,600 285,000 (5,000) 287,600 0 7,120,000 $ 7,120,000

During 2024, the following transactions were recorded by the Port Hudson Community Hospital, a private-sector not-for-profit institution: 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,661,000. Estimated contractual adjustments with third-party payors amounted to $411,000, and the hospital estimated implicit price concessions would total 35,200. 2. Charity services, not included in transaction 1, would amount to $70,000 had billings been made at gross amounts. 3. Other revenues received in cash were parking lot, $22,000, cafeteria, $34,200; gift shop, $5,800. 4. Cash gifts restricted by the donor for programs amounted to $27,700 for the year. During the year, $53,600 was expended for technician salaries supporting the program identified by the donor (Debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $53,200 for principal and $30,400 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $44,800 and unrestricted income of $37,500 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating-income.) 7. New equipment, costing $285,000, was acquired using donor-restricted cash that was on hand at the beginning of the year. 8. An old piece of lab equipment that originally cost $70,000 and had an undepreciated cost of $14,000 was sold for $9,000 cash. 9. At the end of 2024, pledges (restricted as to purpose) were received in the amount of $52,000. These are intended to be received and expended in 2025. 10. Cash contributions were received from donors restricted for plant acquisition, $171,000. 11. Bills were received for the following items: utilities, $141,600, and insurance, $81,600. These will be paid in January of 2025. 12 Depreciation of plant and equipment amounted to $186,000. 13. Cash payments on accounts payable amounted to $173,400. Another $886,000 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,184,000. These were in settlement of patient accounts totaling $1,614,000. Contractual adjustments associated with these totaled $424,000, and price concessions totaled $6,000. 15. Closing entries were prepared. Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital. b. Prepare a Statement of Operations for the Port Hudson Community Hospital for the year ended December 31, 2024. c. Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2024 Assume beginning net assets are $7,120,000. Answer is not complete.. Complete this question by entering your answers in the tabs below. Required A. Required B Required C Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2024. Assume beginning net assets are $7,120,000. Note: Loss or Negative amounts should be indicated by a minus sign. PORT HUDSON COMMUNITY HOSPITAL Statement of Changes in Net Assets For the Year Ended December 31, 2024 Net Assets without Donor Restrictions: Excess of Revenues Over Expenses Net Assets Released From Restrictions: Satisfaction of property plant and equipment restrictions Loss on Sale of Equipment Increase in Net Assets without Donor Restrictions Net Assets with Donor Restrictions: Contribution Revenue Net Assets Released From Restrictions Decrease in Net Assets with Donor Restrictions Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year S 7,600 285,000 (5,000) 287,600 0 7,120,000 $ 7,120,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 4RE

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