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 $7,000,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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 $1,675,000. Estimated contractual adjustments with third-party payors amounted to $405,000, and the hospital estimated implicit price concessions totaling 35,000.

  2. Charity services, not included in transaction 1, would amount to $66,000 had billings been made at gross amounts.

  3. Other revenues received in cash were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000.

  4. Cash gifts restricted by the donor for programs amounted to $32,000 for the year. During the year, $50,000 was expended for technician salaries supporting the program identified by the donor (Debit Operating Expense—Salaries and Benefits).

  5. Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used.

  6. During the year, the hospital received, in cash, unrestricted contributions of $42,000 and unrestricted income of $35,000 from endowment investments. (It is the hospital’s practice to treat unrestricted gifts as nonoperating income.)

  7. New equipment, costing $280,000, 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 $50,000 and had an undepreciated cost of $10,000 was sold for $7,000 cash.

  9. At the end of 2024, pledges (restricted as to purpose) were received in the amount of $50,000. These are intended to be received and expended in 2025.

  10. Cash contributions were received from donors restricted for plant acquisition, $170,000.

  11. Bills were received for the following items: utilities, $139,000, and insurance, $80,000. These will be paid in January of 2025.

  12. Depreciation of plant and equipment amounted to $180,000.

  13. Cash payments on accounts payable amounted to $168,000. Another $910,000 was expended on wages and benefits.

  14. Cash collections of patient accounts receivable amounted to $1,180,000. These were in settlement of patient accounts totaling $1,587,000. Contractual adjustments associated with these totaled $400,000, and price concessions totaled $7,000.

  15. Closing entries were prepared.

 

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 $7,000,000.

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 $7,000,000.
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
Increase in Net Assets with Donor Restrictions
Decrease in Net Assets with Donor Restrictions
Net Assets, Beginning of Year
Net Assets, End of Year
0
0
$
0
Transcribed Image Text: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 $7,000,000. 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 Increase in Net Assets with Donor Restrictions Decrease in Net Assets with Donor Restrictions Net Assets, Beginning of Year Net Assets, End of Year 0 0 $ 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Governmental Accounting Standards
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education