Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-37 Local Not-for-profit Health Care Entity General Journal a. Investments - Internally Restricted 160,000 Cash 160,000 b. Cash 80,000 Contributed Support - Permanently Restricted Net Assets 80,000 c. Inventory of Medicines 25,000 Cash 25,000 Reclassification - Temporarily Restricted Net Assets 25,000 Reclassification - Unrestricted Net Assets 25,000 d. Accounts Receivable - Patients 120,000 Accounts Receivable - Third Party Payors 480,000 Patient Service Revenues 600,000 e. Depreciation Expense 38,000 Accumulated Depreciation 38,000 f. Cash 15,000 Interest Revenue - Unrestricted Net Assets (Internally restricted 15,000 g. Bad Debts Expense 20,000 Allowance for Uncollectible Accounts 20,000 Contractual Adjustment 30,000 Allowance for Reduced Charges 30,000 h. Supplies Expense 25,000 Inventory of Medicines 25,000 i. Cash 172,000 Investments - Internally Restricted 160,000 Gain on Sale of Investments - Unrestricted Net Assets 12,000 Equipment 212,000 Cash 212,000 Reclassification - Temporarily Restricted Net Assets 25,000 Reclassification - Unrestricted Net Assets 25,000 j. Cash 12,600 Pledges Receivable 98,000 Allowance for Uncollectible Pledges 9,000 Contributed Support - Unrestricted Net Assets 12,600 Contributed Support - Temporarily Restricted Net Assets 89,000
Transcript
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-37
Local Not-for-profit Health Care EntityGeneral Journal
a. Investments - Internally Restricted 160,000 Cash 160,000 «- Correct!
b. Cash 80,000 Contributed Support - Permanently Restricted Net Assets 80,000 «- Correct!
c. Inventory of Medicines 25,000 Cash 25,000 «- Correct!
Reclassification - Temporarily Restricted Net Assets 25,000 Reclassification - Unrestricted Net Assets 25,000 «- Correct!
d. Accounts Receivable - Patients 120,000 Accounts Receivable - Third Party Payors 480,000
Patient Service Revenues 600,000 «- Correct!
e. Depreciation Expense 38,000 Accumulated Depreciation 38,000 «- Correct!
f. Cash 15,000 Interest Revenue - Unrestricted Net Assets (Internally restricted) 15,000 «- Correct!
g. Bad Debts Expense 20,000 Allowance for Uncollectible Accounts 20,000 «- Correct!
Contractual Adjustment 30,000 Allowance for Reduced Charges 30,000 «- Correct!
h. Supplies Expense 25,000 Inventory of Medicines 25,000 «- Correct!
i. Cash 172,000 «- Correct!Investments - Internally Restricted 160,000 Gain on Sale of Investments - Unrestricted Net Assets 12,000
Equipment 212,000 Cash 212,000 «- Correct!
Reclassification - Temporarily Restricted Net Assets 25,000 Reclassification - Unrestricted Net Assets 25,000 «- Correct!
j. Cash 12,600 «- Correct!Pledges Receivable 98,000
Allowance for Uncollectible Pledges 9,000 Contributed Support - Unrestricted Net Assets 12,600 Contributed Support - Temporarily Restricted Net Assets 89,000
B8
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D8
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B11
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B14
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B20
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B24
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B27
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B30
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B36
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B39
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B49
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-37
Local Not-for-profit Health Care EntityChanges in Net Assets
a. Announced equipment acquisition plan; invested funds - - - b. Received donation for nursing salary supplements - - 80,000 c. Expended money for medicines 25,000 (25,000) - d. Charged patients 600,000 - - e. Recorded depreciation expense (38,000) - - f. Received interest income on investments from item a 15,000 - - g. Estimated bad debts (20,000) - -
Contractual Adjustment (30,000) - - h. Medications from c were consumed (25,000) - - i. Investments sold 12,000 - -
Equipment purchased 25,000 (25,000) - j. Pledges received 12,600 89,000 -
Increase (Decrease) in Net Assets 576,600 39,000 80,000 Correct! Correct! Correct!
D62
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Given P18-37:
Local Private Not-for-profit Health Care Entity:
a. Announced equipment acquisition plan; invested funds $ 160,000 b. Received donation for nursing salary supplements $ 80,000 c. Expended restricted funds received previous year for medicines $ 25,000 d. Charged patients $ 600,000
Portion to be paid by third-party payors 80%e. Recorded depreciation expense $ 38,000 f. Received interest income on investments from (a.) $ 15,000 g. Estimated as uncollectible accounts $ 20,000
Contractual adjustments expected by third-party payors $ 30,000 h. Medications from (c.) were consumed $ 25,000 i. Investments from (a.) were sold $ 172,000
Previously donated cash stipulated to be used for plant assets $ 25,000 Equipment purchased $ 197,000
j. Unrestricted pledges received $ 126,000 Pledges paid immediately 10%Pledges estimated as uncollectible $ 9,000 Present value of the receivable $ 98,000
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-38
UNIVERSITY OF DANVILLEGeneral Journal
a. Tuition Receivable 1,200,000 Tuition Revenue 1,200,000 «- Correct!
b. Investments 300,000 Contributions-Permanently Restricted 300,000 «- Correct!
c. Cash 700,000 Contributions-Temporarily Restricted 700,000 «- Correct!
d. Scholarships-Financial Aid 100,000 Tuition Receivable 100,000 «- Correct!
e. Salary Expenses 310,000 Cash 310,000 «- Correct!
f. Salary Expenses 80,000 Contributed Service Revenues-Unrestricted Net Assets 80,000 «- Correct!
g. Equipment 200,000 Cash 200,000 «- Correct!
Temporarily Restricted Assets-Reclassification 200,000 Unrestricted Net Assets-Reclassification 200,000 «- Correct!
h. Investments 30,000 Unrealized Gain on Investments-Permanently Restricted Assets 30,000 «- Correct!
i. Cash 9,000 Dividend Revenue-Unrestricted Net Assets 9,000 «- Correct!
j. Depreciation Expense 32,000 Accumulated Depreciation 32,000 «- Correct!
k. Cash-Internally Restricted 100,000 Cash 100,000 «- Correct!
l. Pledge Receivable 7,000 Contributions-Temporarily Restricted 7,000 «- Correct!
m. No entry - - «- Correct!
n. Utilities and Other Expenses 212,000 Cash 212,000 «- Correct!
o. No entry - - «- Correct!
B8
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D8
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-38
UNIVERSITY OF DANVILLEStatement of Activities
Temporarily PermanentlyUnrestricted Restricted RestrictedNet Assets Net Assets Net Assets Total
Revenues and Gains:Tuition 1,100,000 1,100,000 ScholarshipsUnrealized Gain in Investments 30,000 30,000 Dividend Revenue 9,000 9,000
Contributions:Cash and Other Assets 707,000 300,000 1,007,000 Services 80,000 80,000
Total Revenues, Gains, and Contributions 1,189,000 707,000 330,000 2,226,000 Net Assets Released from Restriction 200,000 (200,000) - Totals 1,389,000 507,000 330,000 2,226,000
Operating Expenses:Salaries 390,000 390,000 Depreciation 32,000 32,000 Utilities and Other Expenses 212,000 212,000
Total Expenses 634,000 634,000 Increase in Net Assets 755,000 507,000 330,000 1,592,000 Net Assets-Beginning of Year 400,000 200,000 100,000 700,000 Net Assets-End of Year 1,155,000 707,000 430,000 2,292,000
Correct! Correct! Correct! Correct!
D64
Enter appropriate data in yellow cells. Your answers for "Net Assets-End of Year" will be verified.
Given P18-38:
UNIVERSITY OF DANVILLE
Current year net assets:Total $ 700,000 Unrestricted 400,000 Temporarily restricted 200,000 Permanently restricted 100,000
Transactions occurring during the year:a. Tuition charged $ 1,200,000 b. Donation of investments - cost to owner $ 100,000
Value at time of gift $ 300,000 c. Cash donated for laboratory equipment $ 700,000 d. Scholarships given to students $ 100,000 e. Salary expenses paid $ 310,000 f. Faculty member contributes services $ 80,000 g. Money from (c.) spend on laboratory equipment $ 200,000 h. Investments from (b.) valued at year end $ 330,000 i. Dividends received from investments from (b.) $ 9,000 j. Depreciation expense computed $ 32,000 k. Unrestricted assets set aside for purchase of library books $ 100,000 l. Money promised to school in 3 years $ 10,000
Present value of this money $ 7,000 m. Value of art object received as gift $ 70,000 n. Utilities and other expenses paid $ 212,000 o. Value of services donated to library $ 103,000
Total revenues 260,000 167,000 - Net assets released from restriction 65,000 (65,000)Total revenues and net assets released from restriction 325,000 102,000 -
Enter appropriate data in yellow cells. Your answers for "Net Assets at end of year" will be verified.
E93
Enter appropriate data in yellow cells. Your answers for "Total assets", "Notes payable", and total for net assets will be verified.
Given P18-42:
WATSON FOUNDATION
Beginning balances:Cash $ 100,000 Pledges receivable (net) $ 200,000 Investments $ 300,000 Land, buildings and equipment $ 200,000 Unrestricted net assets $ 400,000 Temporarily restricted net assets $ 100,000 Portion to be used for new building 50%Permanently restricted net assets $ 300,000
Transactions occurring during the year:Interest computed on the pledge receivable $ 20,000 Cash received on pledges $ 100,000 Pledges written off as uncollectible $ 4,000 Unrestricted cash gifts received $ 180,000 Salaries paid $ 90,000 Portion of salaries paid from restricted funds $ 15,000 Cash gift received to be given to another organization $ 12,000 Building purchased $ 500,000 Long-term note signed for purchase $ 450,000 Remainder paid for with restricted funds $ 50,000 Membership dues collected $ 30,000 Income generated by permanently restricted net assets $ 30,000 Rent paid $ 12,000 Advertising paid $ 15,000 Utilities paid $ 16,000 Unrestricted pledge received, to be collected in 5 years $ 200,000 Present value of pledge $ 149,000 Interest recognized $ 6,000 Depreciation computed $ 40,000 Interest paid on note signed to acquire building $ 15,000
