In: Accounting
During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution:
Required:
a. Record the transactions in the general journal
of the Port Hudson Community Hospital.
b. Prepare a Statement of Operations for the Port
Hudson Community Hospital for the year ended December 31,
2020.
c. Prepare a Statement of Changes in Net Assets
for the Port Hudson Community Hospital for the year ended December
31, 2020. Assume beginning net assets are $7,255,000.
Solution:
| Date | Particulars | Debit | Credit |
| 1 | patient account receivable a/c | 1,970,000 | |
| to unrestricted operating patient service revenue | 1,970,000 | ||
| 2 | unrestricted contractual adjustment a/c | 560,000 | |
| to patients accounts receivables | 560,000 | ||
| 3. | cash a/c | 100,000 | |
| to operating unrestricted other revenue | 100,000 | ||
| 4 | cash a/c | 40,450 | |
| to contribution revenue | 40,450 | ||
| 5 | salaries operating expenses a/c | 80,600 | |
| to cash | 80,600 | ||
| 6 | mortgage bonds payable a/c | 77,200 | |
| operating interest expenses | 48,400 | ||
| to cash | 125,600 | ||
| 7 | cash a/c | 122,050 | |
| to gifts unrestricted income | 65,800 | ||
| to income on endowments unrestricted | 56,250 | ||
| 8 | equipment a/c | 186,000 | |
| to cash | 186,000 | ||
| 9 | temporarily restricted net asset class-satisfaction | 186,000 | |
| 10 | cash a/c | 24,000 | |
| accumulated depreciation of equipment | 176,000 | ||
| loss on the sale of equipment | 20,000 | ||
| to equipment | 220,000 | ||
| 11 | contributions receivables | 205,000 | |
| to temporarily restricted contributions | 205,000 | ||
| 12 | cash a/c | 225,250 | |
| to plant acquisition restricted contributions | 225,250 | ||
| 13 | operating expenses utilities | 161,100 | |
| operating expenses insurance | 93,600 | ||
| to accounts payable | 254,700 | ||
| 14 | operating expenses depreciation | 231,000 | |
| accumulated equipment depreciation | 231,000 | ||
| 15 | accounts payable a/c | 213,900 | |
| to cash | 213,900 | ||
| 16 | operating expenses wages and benefits | 839,100 | |
| cash | 839,100 | ||
| 17 | cash a/c | 1,214,000 | |
| to patient account receivable | 1,214,000 | ||