Question

Govt and Nonprofit Accounting

(27.)

Listed below are selected transactions form the City of Watertown Hospital. All amounts are in thousands of dollars.

Transactions:

1. The hospital provided patient services during the year that had standard charges of $12,500. Contractual adjustments awarded to patients under contracts with insurance companies and under government programs totaled $2,000. Uncollectible accounts are expected to be approximately $800.

2. Nursing and other professional salaries paid during the year totaled $2,300.

3. Depreciation for the year was $500 for the building and $900 for the equipment.

4. Medical supplies costing $2,600 were purchased durign the year. The inventory of supplies increased $200 at the beginning of the year to $300 at the year end.

5. The hospital received $4,000 to be used for the purchase of specialized diagnostic equipment.

6. THe hospital received a $500 gift to be used for providing specialized coronary care services to patients.

7. The hosptial purchased $2,000 of diagnostic equipment with the donation received for that purpose.

8. The hospital incurred $400 of operating expenses for the care of coronary patients constient with the purposes of that donation.

9. The hospital issued $5,000 of 20-year, 8% bonds at par at mid-year to finance a new additionf or the hospital.

10. The hospital estimates that malpractice claims against the hospital of $400 will ultimately result in liabilities of $100 that will have to be paid, but probably will not have to be paid uring the next fiscal year.

Requirement: Prepare the journal entires required of a government hospital for these transactions

I found this question to be really difficult, please help if possible, thank you!

Answer 1

1.The hospital provided patient services during the year that had standard charges of

   $12,500.Contractual adjustments awarded to patients under contracts with insurance   

   companies and under government programs totaled $2,000. Uncollectible accounts are

   expected to be approximately $800.

                                       Journal Entry

Patient Accounts Receivable                             $15,300

To Patient Service Revenue                                                     $15,300

Provision for Contractual Adjustments                 $2,000

To Patient Accounts Receivable                                                 $2,000

Bad debt Expense                                                    $800

To Allowance for Uncollectible accounts                                       $800

2.Nursing and other professional salaries paid during the year totaled $2,300

                                       Journal Entry

Salaries (Nursing and other Professional)             $2,300

To Cash                                                                                      $2,300

3. Depreciation for the year was $500 for the building and $900 for the equipment.

                                       Journal Entry

Depreciation                                                        $1,400

To Building                                                                                    $500

To Equipment                                                                                $900

4.Medical supplies costing $2,600 were purchased durign the year. The inventory of supplies    

   increased $200 at the beginning of the year to $300 at the year end.

                                         Journal Entry

Medical supplies                                                   $2,600

To Accounts Payable                                                                 $2,600

Inventory of Supplies                                               $100

To Medical supplies                                                                      $100

5. The hospital received $4,000 to be used for the purchase of specialized diagnostic     

    equipment.

                                       Journal Entry

Cash                                                                      $4,000

To Patient Accounts Receivable                                                 $4,000

purchase of specialized diagnostic equipment      $4,000

To Cash                                                                                       $4,000

6. The hospital received a $500 gift to be used for providing specialized coronary care     

     services to patients.

                                       Journal Entry

Cash                                                                       $500

To Gift (donation)                                                                           $500

7. The hosptial purchased $2,000 of diagnostic equipment with the donation received for that     

     purpose.

                                       Journal Entry

Cash                                                                      $2,000

To Donation                                                                                $2,000

purchase of diagnostic equipment                        $2,000

To Cash                                                                                       $2,000

8. The hospital incurred $400 of operating expenses for the care of coronary patients    

    constient with the purposes of that donation.

                                       Journal Entry

Operating expenses                                                 $400

To Cash (donation)                                                                         $400

9.The hospital issued $5,000 of 20-year, 8% bonds at par at mid-year to finance a new

   addition or the hospital.

                                                    Journal Entry

Cash/Bank                                                             $5,000

To 8% bonds                                                                              $5,000

Interest on 8% Bonds                                              $200

To Cash                                                                                        $200

10.The hospital estimates that malpractice claims against the hospital of $400 will ultimately

     result in liabilities of $100 that will have to be paid, but probably will not have to be paid   

     uring the next fiscal year.

                                                    Journal Entry

malpractice claims Exp.                                              $100

To Outstanding Laibilities                                                           $100