Question

In: Accounting

St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,010,000 (based...

St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,010,000 (based on customary rates) for the month. Of this, $125,000 is billed to patients, representing their insurance deductibles and co-payments. The balance is billed to third-party payers, including insurance companies and government health care agencies. St. Joseph estimates that 20 percent of these third-party payer charges will be deducted by contractual adjustment. The Hospital’s fiscal year ends on December 31. Required: 1. Prepare the journal entries for December 2016. Assume that 15 percent of the amounts billed to patients will be uncollectible. 2. Prepare the journal entries for 2017 assuming the following: $106,000 is collected from the patients during the year and $10,200 is written off. Actual contractual adjustments total $201,000. The remaining receivable from third-party payers is collected.

Solutions

Expert Solution


Related Solutions

St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,050,000 (based...
St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,050,000 (based on customary rates) for the month. Of this, $129,000 is billed to patients, representing their insurance deductibles and co-payments. The balance is billed to third-party payers, including insurance companies and government health care agencies. St. Joseph estimates that 20 percent of these third-party payer charges will be deducted by contractual adjustment. The Hospital’s fiscal year ends on December 31. Required: 1. Prepare the journal...
St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,030,000 (based...
St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $1,030,000 (based on customary rates) for the month. Of this, $127,000 is billed to patients, representing their insurance deductibles and co-payments. The balance is billed to third-party payers, including insurance companies and government health care agencies. St. Joseph estimates that 20 percent of these third-party payer charges will be deducted by contractual adjustment. The Hospital’s fiscal year ends on December 31. Required: 1. Prepare the journal...
St Joseph Hospital began operations in December 2014 and had patient service revenues totaling $950,000 for...
St Joseph Hospital began operations in December 2014 and had patient service revenues totaling $950,000 for the month. Of this $103,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third party payers, including insurance companies and government health care agencies. St Joseph estimates that 20 percent of these third party payer charges will be deducted by contractual adjustment. The Hospitals fiscal year ends on December 31. 1. Prepare journal entries for December 2014....
Sharjah City Hospital began operations in December 2019 and had patient service revenues totaling $5,000,000 (based...
Sharjah City Hospital began operations in December 2019 and had patient service revenues totaling $5,000,000 (based on customary rates) for the month. Of this, $3,000,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third party payors, including insurance companies and government health care agencies. Sharjah City Hospital estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: Prepare the...
(c) Corona Hope Hospital began operations in December 2019 and had patient service revenues totaling $2,000,000...
(c) Corona Hope Hospital began operations in December 2019 and had patient service revenues totaling $2,000,000 (based on customary rates) for the month. Of this, $1,200,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third party payors, including insurance companies and government health care agencies. Corona Hope estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: Prepare the...
Marigold Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the...
Marigold Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the purchase of inventory on December 10, 2016, at a cost of $20 per unit. None of this inventory was sold in 2016. Relevant information for fiscal 2017 is as follows: Ending inventory units: December 31, 2016 120 December 31, 2017, by purchase date —Dec. 2, 2017 120 —July 20, 2017 31 151 During 2017, the following purchases and sales were made: Purchases Sales Mar....
Fargo Memorial Hospital has annual net patient service revenues of $14.4 million. The hospital's patient accounts...
Fargo Memorial Hospital has annual net patient service revenues of $14.4 million. The hospital's patient accounts manager estimates that 10 percent of third party payers pay on Day 30, 60 percent pay on Day 60, and 30 percent pay on Day 90. a. What is Fargo's average collection period? (Assume 360 days per year throughout this problem.) b. What is the firm's current receivables balance? c. What would be the firm's new receivables balance if a newly proposed electronic claims...
Alakazam Corp. began business on January 1, 2016. At December 31, 2016, it had a $4,500...
Alakazam Corp. began business on January 1, 2016. At December 31, 2016, it had a $4,500 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired during 2016 at a cost of $900,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8—20% asset for tax purposes. Alakazam’s income before income tax for 2017 was $60,000. Alakazam Corp. follows IFRS and...
The POL Company had started its operations in 2016. The balance sheet for December 31, 2016,...
The POL Company had started its operations in 2016. The balance sheet for December 31, 2016, showed the following accounts balances (there were no other accounts listed): Accounts receivables 45 Unearned revenue 40 Accumulated depreciation 10 Common stock 500 Retained earnings 57 Property plant and equipment (gross) 200 Inventory 75 Accounts payable 40 Cash 309 Prepaid rent ______ During 2017 the following transactions occurred: 1. POL purchased $375 worth of inventory on account. 2.Payments on Accounts payable were $365. 3.Cash...
Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016...
Paddleboard Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information. Paddleboard Inc. Income Statement For Year Ended December 31, 2017 (000s)   Revenues:         Sales $3,814                Cost of goods sold 1,566          Gross Profit 2,248          Expenses:                       Other expenses $850                Depreciation expense 110                Total operating expenses 960          Profit from operations 1,288           Income tax expense 288         Profit $1,000       Paddleboard...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT