List and record each transaction (in 000s) for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1.    You are creating a General Ledger using exhibit 3-6 on page 112 as a guide.    Zelman( Workbook) a.  The clinic received a $10,000,000 unrestricted cash contribution from the community. b.  The clinic purchased $4,500,000 of equipment using cash. c.  The clinic borrowed $2,000,000 from the bank on a long-term basis. d.  The clinic purchased $550,000 of supplies on credit. e.  The clinic provided $8,400,000 of services on credit. f.  In the provision of these services, the clinic used $420,000 of supplies. g.  The clinic received $800,000 in advance to care for capitated patients. h.  The clinic incurred $4,500,000 in labor expenses and paid cash for them. i.  The clinic incurred $2,230,000 in general expenses and paid cash for them. j.  The clinic received $6,000,000 from patients and their 3rd party payers in payment of outstanding accounts. k.  The clinic met $440,000 of its obligation to capitated patients (transaction g). l.  The clinic made a $400,000 cash payment on the long-term basis. m.  The clinic also made a cash interest payment of $40,000. n.  A donor made a temporarily restricted donation of $370,000, which is set aside in temporary investments. o.  The clinic recognized $400,000 in depreciation for the year. p.  The clinic estimated that $850,000 of patient accounts would not be received, and established a provision for bad debt.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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List and record each transaction (in 000s) for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1.    You are creating a General Ledger using exhibit 3-6 on page 112 as a guide.    Zelman( Workbook)

a.  The clinic received a $10,000,000 unrestricted cash contribution from the community.

b.  The clinic purchased $4,500,000 of equipment using cash.

c.  The clinic borrowed $2,000,000 from the bank on a long-term basis.

d.  The clinic purchased $550,000 of supplies on credit.

e.  The clinic provided $8,400,000 of services on credit.

f.  In the provision of these services, the clinic used $420,000 of supplies.

g.  The clinic received $800,000 in advance to care for capitated patients.

h.  The clinic incurred $4,500,000 in labor expenses and paid cash for them.

i.  The clinic incurred $2,230,000 in general expenses and paid cash for them.

j.  The clinic received $6,000,000 from patients and their 3rd party payers in payment of outstanding accounts.

k.  The clinic met $440,000 of its obligation to capitated patients (transaction g).

l.  The clinic made a $400,000 cash payment on the long-term basis.

m.  The clinic also made a cash interest payment of $40,000.

n.  A donor made a temporarily restricted donation of $370,000, which is set aside in temporary investments.

o.  The clinic recognized $400,000 in depreciation for the year.

p.  The clinic estimated that $850,000 of patient accounts would not be received, and established a provision for bad debt.

 

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