The following selected events and transactions were recorded by Milos County Hospital. 1. Gross charges for hospital services, all charged to accounts and notes receivable, were as follows: Patient service revenue $1,668,700 2. The hospital cafeteria and gift shop had cash sales of $297,200. 3. Additional information determined subsequently to recording patient service revenues and relating to the current year is as follows: Contractual adjustments Provision for bad debts Charity care $651,000 32,100 263,300 4. A federal cost reimbursement research grant of $369,000 was awarded. As of the end of the year, $390,000 in expenses related to the grant had been made. 5. Vouchers totaling $1,370,240 were issued for the following items: Fiscal and administrative services expenses General services expenses Nursing services expenses Other professional services expenses Inventory Expenses accrued at December 31 $203,940 255,000 604,000 187,500 110,700 9,100 6. Collections of accounts receivable totaled $1,178,000. Accounts written off as uncollectible amounted to $13,800. 7. Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1,040,700. 8. Supplies of $101,670 were issued to nursing services. 9. On December 31, accrued interest income on investments was $2,700. 10. Depreciation of buildings and equipment was as follows: 10. Depreciation of buildings and equipment was as follows: Buildings Equipment $70,000 92,000 11. On December 31, closing entries were made in the general journal. Required a-1. Prepare journal entries for each of the transactions in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. a-2. Prepare closing entries in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. b. Calculate the net patient service revenue that would be reported on the statement of revenues, expenses, and changes in net position.

The following selected events and transactions were recorded by Milos County Hospital. 1. Gross charges for hospital services, all charged to accounts and notes receivable, were as follows: Patient service revenue $1,668,700 2. The hospital cafeteria and gift shop had cash sales of $297,200. 3. Additional information determined subsequently to recording patient service revenues and relating to the current year is as follows: Contractual adjustments Provision for bad debts Charity care $651,000 32,100 263,300 4. A federal cost reimbursement research grant of $369,000 was awarded. As of the end of the year, $390,000 in expenses related to the grant had been made. 5. Vouchers totaling $1,370,240 were issued for the following items: Fiscal and administrative services expenses General services expenses Nursing services expenses Other professional services expenses Inventory Expenses accrued at December 31 $203,940 255,000 604,000 187,500 110,700 9,100 6. Collections of accounts receivable totaled $1,178,000. Accounts written off as uncollectible amounted to $13,800. 7. Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1,040,700. 8. Supplies of $101,670 were issued to nursing services. 9. On December 31, accrued interest income on investments was $2,700. 10. Depreciation of buildings and equipment was as follows: 10. Depreciation of buildings and equipment was as follows: Buildings Equipment $70,000 92,000 11. On December 31, closing entries were made in the general journal. Required a-1. Prepare journal entries for each of the transactions in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. a-2. Prepare closing entries in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. b. Calculate the net patient service revenue that would be reported on the statement of revenues, expenses, and changes in net position.

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

See similar textbooks