(a)
Introduction:
The journal entries in the general fund for each transaction and event given.
(a)
Answer to Problem 19.3E
Journal Entries
S.no | Date | Particulars | Debit (in $) | Credit (in$) |
1 | 7,000,000 | |||
Patient service revenue | 7,000,000 | |||
2 | Nursing service expenses | 2,130,000 | ||
Other professional service expense | 1,250,000 | |||
Fiscal service expense | 249,000 | |||
General service expense | 1,570,000 | |||
135,000 | ||||
Administration expense | 230,000 | |||
493,000 | ||||
Cash | 4,792,000 | |||
Allowance for uncollectibles | 135,000 | |||
| 493,000 | |||
Accounts payable | 218,000 | |||
Inventory | 230,000 | |||
Donated services | 189,000 | |||
3 | Patient service revenue | 240,000 | ||
Accounts receivable | 240,000 | |||
4 | Cash | 170,000 | ||
Net assets released from program use restrictions | 170,000 | |||
5 | Cash | 240,000 | ||
Net assets released from equipment acquisition | 240,000 | |||
6 | Cash | 150,000 | ||
Contributions without donor restrictions | 150,000 | |||
7 | Cash | 6,325,000 | ||
Allowance for uncollectibles | 65,000 | |||
Accounts receivables | 6,390,000 | |||
8 | Investment securities | 70,000 | ||
Unrealized holding gain on investment securities | 70,000 |
Explanation of Solution
- Recording the patients services provided
- Recording operating expenses against credit for expenses
- Recording contractual adjustments against revenues
- Recording the transfer from specific purpose funds
- Recording funds received from equipment acquisition
- Recording receipt of unrestricted gifts
- Recording collection from account receivables
- Recording the increase in fair market value of securities.
(b)
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
The journal entries in the general fund for each transaction and event given.
(b)
Answer to Problem 19.3E
Statement of Operations for the year ended 31 December, 20X6
S.no | Date | Particulars | Debit (in $) | Credit (in$) |
1 | Unrestricted revenues, gains and other supports: | |||
Net patient service revenue | 6,390,000 | |||
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 expense | 2,130,000 | |||
Other professional service expense | 1,250,000 | |||
Fiscal service expense | 249,000 | |||
General service expense | 1,570,000 | |||
Bad debts expense | 135,000 | |||
Administrative expense | 230,000 | |||
Depreciation expense | 493,000 | |||
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
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