Advanced Financial Accounting
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
Question
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Chapter 19, Problem 19.3E

(a)

To determine

Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.

The journal entries in the general fund for each transaction and event given.

(a)

Expert Solution
Check Mark

Answer to Problem 19.3E

Journal Entries

    S.noDateParticularsDebit (in $)Credit (in$)
    1Accounts receivable7,000,000
    Patient service revenue7,000,000
    2Nursing service expenses2,130,000
    Other professional service expense1,250,000
    Fiscal service expense249,000
    General service expense1,570,000
    Bad debts expense135,000
    Administration expense230,000
    Depreciation expense493,000
    Cash 4,792,000
    Allowance for uncollectibles 135,000
    Accumulated depreciation493,000
    Accounts payable218,000
    Inventory230,000
    Donated services189,000
    3Patient service revenue240,000
    Accounts receivable240,000
    4Cash170,000
    Net assets released from program use restrictions170,000
    5Cash240,000
    Net assets released from equipment acquisition 240,000
    6Cash 150,000
    Contributions without donor restrictions 150,000
    7Cash 6,325,000
    Allowance for uncollectibles 65,000
    Accounts receivables6,390,000
    8Investment securities 70,000
    Unrealized holding gain on investment securities70,000

Explanation of Solution

  1. Recording the patients services provided
  2. Recording operating expenses against credit for expenses
  3. Recording contractual adjustments against revenues
  4. Recording the transfer from specific purpose funds
  5. Recording funds received from equipment acquisition
  6. Recording receipt of unrestricted gifts
  7. Recording collection from account receivables
  8. Recording the increase in fair market value of securities.

(b)

To determine

Introduction: The statement of operations is one from of financial statements that summarizes the company’s revenues and expenses for the entire reporting period. The statement of operations is also known as profit and loss account.

The journal entries in the general fund for each transaction and event given.

(b)

Expert Solution
Check Mark

Answer to Problem 19.3E

Statement of Operations for the year ended 31 December, 20X6

    S.noDateParticularsDebit (in $)Credit (in$)
    1Unrestricted revenues, gains and other supports:
    Net patient service revenue6,390,000
    Contributions 150,000
    Net assets released from program use restrictions 200,000
    Total revenues, gains and supports:6,740,000
    Expenses and losses:
    Nursing service expense2,130,000
    Other professional service expense1,250,000
    Fiscal service expense249,000
    General service expense1,570,000
    Bad debts expense135,000
    Administrative expense230,000
    Depreciation expense493,000
    Total operating expenses
    Excess of operating revenues over operating expenses
    Unrealized gains designated in excess of amounts for current operations 240,000
    Net assets realized from restrictions used for the purchase of equipment 240,000

Explanation of Solution

All the items of revenues are credited showing an addition in the income of the organization and all the items of expenditure are debited showing a decrease in income of the business.

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Chapter 19 Solutions

Advanced Financial Accounting

Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
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