Question

Journal entries Prepare journal entries to record the following transactions of a nonprofit hospital: 1. The hospital billed its uninsured patients for $250,000. Based on historical experience, it expects to collect 45 percent of that amount over time. 2. Nurses and doctors employed by the hospital were paid their salaries, $100,000. 3. The chief administrative officer was paid her salary of $10,000. 4. The hospital paid its utility bill, $5,000. (Transactions 5 - 8 immediately follow.) If a transaction does not require a journal entry, select No entry as your answers and leave the Debit and Credit answers blank (zero). Ref. Description Debit Credit 250,000 Patient service revenues 0 250,000 To record gross patient service revenue. 137,500 0 137,500 To record an adjustment for the estimated uncollectible amount. 100,000 Cash 100,000 10,000 Cash 10,000 Depreciation expense 5,000 0 5,000

Answer 1

Patienb Account Recable Pahenth Sevia revemue gro 000 (Beng wecond mus) t guore pation Seice revenue Patients demte seve nue Proviien tor uncollectable TO 1,37,500 ,37,500 Podients Ales Recarable Salaries 4,00,000 Cash 100000 ty Salaues t0,000 Cash 10,000 uhy expoue 5000 5000 Cash