Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Question
Chapter 16, Problem 17EP
a.
To determine
Prepare
b.
To determine
Prepare journal entry to record the given transaction by assuming that hospital is a business-type government facility.
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1. A not-for-profit hospital performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work. Additionally, officials expect another $94,000 to be bad debts. What should the hospital report as net patient service revenues?
Select one:
a.$906,000
b.$1,000,000
c.$706,000
d.$800,000
2. In the accounting for health care providers, what are third-party payors?
Select one:
a.Friends and relatives who pay the medical costs of a patient.
b.Doctors who reduce fees for indigent patients.
c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States.
d.Charities that supply medicines to hospitals and other health care providers.
3.What is a contractual adjustment?
Select one:
a.A year-end journal entry to recognize all of a health care entity's remaining receivables.
b.An increase in a patient's…
66. A private not-for-profit hospital provided
$150,000 in charity care for the current year. The
hospital should report this charity care as
a. Net patient service revenue of $150,000 and pa-
tient care expense of $150,000.
b. Net patient service revenue of $150,000 on the
statement of operations.
c. Only in the notes to the financial statements.
d. As an unpaid accounts receivable on the balance
sheet.
67. The Johnson Hospital, a private not-for-profit
hospital, received the following revenues in the cur-
rent year:
Proceeds from sales of the Hospital's
flower shop
Dividends and interest revenue
not restricted
$60,000
$20,000
Cash contributions for the renovation of
the children's ward in the Hospital
$200,000
Which of these amounts should be reported as other
revenues and gains (other revenue) on the Statement
of Operations?
a. $280,000
b. $60,000
c. $80,000
d. $260,000
68. The Whitlow Hospital, a private not-for-profit
hospital, uses as its performance indicator revenues
and gains…
Chapter 16 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 5QCh. 16 - Prob. 6QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11CCh. 16 - Prob. 15.1EPCh. 16 - Prob. 15.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 15.4EPCh. 16 - Prob. 15.5EPCh. 16 - Prob. 15.6EPCh. 16 - Prob. 15.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 15.9EPCh. 16 - Prob. 15.10EPCh. 16 - Prob. 16EPCh. 16 - Prob. 17EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - Prob. 20EPCh. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EP
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