Entries for a Hospital’s Unrestricted (General) Fund
The following are transactions and events of the general fund of Sycamore Hospital, a not-for-profit entity, for the 20X6 fiscal year ending December 31, 20X6.
1. A total of $6,200,000 in patient services was provided.
2. Operating expenses total $5,940,000, as follows:
Nursing services | $2,070,000 |
Other professional expenses | 1,250,000 |
Fiscal services | 225,000 |
General services | 1,510,000 |
Bad debts | 125,000 |
Administration | 260,000 |
Depreciation | 500,000 |
Accounts credited for operating expenses other than depreciation:
Cash | $4,785,000 |
Allowance for Uncollectibles | 125,000 |
Accounts Payable | 210,000 |
Inventories | 240,000 |
Donated Services | 80,000 |
3. Contractual adjustments of $220,000 are allowed as deductions from gross patient revenue.
4. A transfer of $180,000 is received from specific-purpose funds. This transfer is for payment of approved operating costs in accordance with the terms of the restricted gift.
5. A transfer of $200,000 is received from the temporarily restricted plant fund to fund the purchase of new equipment for the hospital.
6. Sycamore Hospital receives $155,000 of unrestricted gifts.
7. Accounts receivable are collected except for $75,000 written off.
8. A valuation of the investment securities portfolio of the general fund reports a $70,000 increase in the market value from the beginning of the period. The board designated this entire income for other than current operations.
Required
a. Preparejournal entries in the general fund for each of the transactions and events.
b.Prepare the statement of operations for the general, unrestricted fund of Sycamore Hospital.
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