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 | ||