St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,000 Is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and government health care agencles. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $118,000 Is collected from the patients during the year and $1,300 of price adjustments are granted to Individuals. b. Actual contractual adjustments total $306.000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) Vlew transaction lst Journal entry worksheet 3 4 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal
St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,000 Is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and government health care agencles. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $118,000 Is collected from the patients during the year and $1,300 of price adjustments are granted to Individuals. b. Actual contractual adjustments total $306.000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) Vlew transaction lst Journal entry worksheet 3 4 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary
rates) for the month. Of this, $138,.000 is billed to patlents, representing their Insurance deductibles and copayments. The balance is
billed to third-party payors, Including Insurance companles and govemment health care agencies. St. Joseph's estimates that 20
percent of these third-party payor charges wll be deducted by contractual adjustment. The hospital's fiscal year ends on December 31.
Required:
1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit
price adjustments.
2 Prepare the Journal entries for 2020 assuming the following:
a. $18.000 is collected from the patients during the year and $1,300 of price adjustments are granted to individuals.
b. Actual contractual adjustments total $306,000. The remalning recelvable from third-party payors Is collected.
(If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Vlew transaction llat
Journal entry worksheet
3
4
5
6
Record the provision for uncollectible accounts for 2019.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
10
Record entry
Clear entry
Vlew general Journal
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