During 2017, the following selected events and transactions were recorded by Milos County Hospital. |
1. | Gross charges for hospital services, all charged to accounts and notes receivable, were as follows: |
Patient service revenues | $1,666,500 |
2. | The hospital cafeteria and gift shop had cash sales of $296,100. |
3. |
Additional information determined subsequently to recording patient service revenues and relating to the current-year is as follows: |
Contractual adjustments | $ | 640,000 |
Provision for bad debts | 31,000 | |
Charity care | 262,200 | |
4. |
A federal cost reimbursement research grant of $358,000 was awarded. As of the end of the year, $280,000 in expenses related to the grant had been made. |
5. | Vouchers totaling $1,344,940 were issued for the following items: |
Fiscal and administrative services expenses | $ | 198,440 |
General services expenses | 253,900 | |
Nursing services expenses | 593,000 | |
Other professional services expenses | 186,400 | |
Inventory | 105,200 | |
Expenses accrued at December 31, 2017 | 8,000 | |
6. |
Collections of accounts receivable totaled $1,167,000. Accounts written off as uncollectible amounted to $12,700. |
7. |
Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1,035,200. |
8. | Supplies of $100,570 were issued to nursing services. |
9. | On December 31, 2017, accrued interest income on investments was $1,600. |
10. | Depreciation of buildings and equipment was as follows: |
Buildings | $ | 59,000 |
Equipment | 81,000 | |
11. | On December 31, 2017, closing entries were made in the general journal. |
Required |
a-1. |
Prepare journal entries for each of the transactions in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
1 Record the amount receivable towards patient services rendered.
2 The hospital cafeteria and gift shop had cash sales of $296,100.
3 Record the contractual adjustment, charity care and provision for bad debts.
4 Record the payment for expenses related to research.
5 Record the reimbursement of research expenses from the grants and contributions account.
6 Record the expenses vouchers for the year.
7 Collections of accounts receivable totaled $1,167,000. Accounts written off as uncollectible amounted to $12,700.
8 Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1,035,200.
9 Supplies of $100,570 were issued to nursing services.
10 On December 31, 2017, accrued interest income on investments was $1,600.
11 Record the depreciation expenses for the year.
a-2. |
Prepare closing entries in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
- Record the closing entries for the year.
b. |
Calculate the net patient service revenue that would be reported on the statement of revenues, expenses, and changes in net position. |
During 2017, the following selected events and transactions were recorded by Milos County Hospital. 1. Gross...
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