Advanced Financial Accounting
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
Question
Book Icon
Chapter 19, Problem 19.13P

(a)

To determine

Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.

The journal entries for the transactions for the general fund

(a)

Expert Solution
Check Mark

Answer to Problem 19.13P

Journal Entries

    S.noDateParticularsDebit (in $)Credit (in$)
    1Accounts receivable6,160,000
    Patient revenue services6,160,000
    2Contractual adjustments 330,000
    Accounts receivable330,000
    3Nursing services1,800,000
    Other professional services1,200,000
    Fiscal services 250,000
    General services1,550,000
    Bad debts120,000
    Administration280,000
    Depreciation expense400,000
    Cash4,580,000
    Allowance for uncollectibles120,000
    Accumulated depreciation400,000
    Accounts payable170,000
    Accrued expense35,000
    Inventories195,000
    Prepaid expenses30,000
    Donated services (non-operating gain)70,000
    4Cash75,000
    Due from specific fund25,000
    Net assets released from program use restriction100,000
    5Inventories176,000
    Prepaid expenses24,000
    Cash200,000
    6Cash85,000
    Income from endowment funds85,000
    7Cash17,000
    Accumulated depreciation20,000
    Property, plant and equipment30,000
    Gain in sale of equipment7,000
    8Cash5,800,000
    Allowance for uncollectibles132,000
    Accounts receivable5,932,000
    9Investments60,000
    Cash60,000
    10Cash72,000
    Board designated investments72,000
    11Accounts payable150,000
    Accrued expenses55,000
    Cash205,000
    12Cash20,000
    Deferred revenue reimbursement20,000
    13Cash140,000
    Net assets released from fixed asset acquisition restriction140,000
    14Cash63,000
    Other operating revenue63,000

Explanation of Solution

  1. Recording the amount realized from patient services
  2. Recording the contractual adjustments of patients bill
  3. Recording the operating expenses
  4. Recording the gift received from specific purpose fund and its increment
  5. Recording the payment of inventories and prepaid expenses
  6. Recording income received from endowment funds
  7. Recording the sale of X-ray machine and depreciation on it
  8. Recording receivables and writing off a part of it
  9. Recording the purchase of investment
  10. Recording income from board designated investments
  11. Recording the payment of accounts payable and accrued expenses
  12. Recording the increase in deferred revenue- reimbursement
  13. Recording the receipt of revenue from plant replacement and expansion fund
  14. Recording the sale

(b)

To determine

Introduction: The balance sheet of a company discloses the financial position of a company at the end of the year. With the help of a balance sheet one can know the financial capacity of a company at any given point of time.

The comparative balance sheet for the general funds

(b)

Expert Solution
Check Mark

Answer to Problem 19.13P

Financial statement for the year ended December 31, 20X2 and 20X1

    Particulars20X220X1
    Assets:
    Cash1,352,000125,000
    Accounts receivable29,800400,000
    Less: allowance for uncollectibles(38,000)(50,000)
    Due from specific funds65,00040,000
    Inventories76,00095,000
    Prepaid expenses14,00020,000
    Investments960,000900,000
    Property, plant and equipment6,07,0006,100,000
    Less: accumulated depreciation(1,880,000)(1,500,000)
    Total6,917,0006,130,000
    liabilities and fund balance
    Accounts payable 170,000150,000
    Accrued expenses35,00055,000
    Deferred revenues95,00075,000
    Bonds payable3,000,0003,000,000
    Unrestricted net assets3,617,0002,850,000
    Total liabilities 6,917,0006,130,000

Explanation of Solution

The comparative balance sheet of general funds reveal that the value of assets and liabilities increased from $6,130,000 in 20X1 to $6,917,000. An increment of $787,000 was made. this shows that the performance of general fund improved from the previous year but simultaneously the liabilities also increased.

(c)

To determine

Introduction: The statement of activities is the financial statement of a non- profit organization or otherwise. The statement of activities has multiple columns for reporting the amounts for the following net assets:

  1. Without donor restriction funds
  2. With donor restriction funds
  3. The aggregate amount

The statement of activities for the year ended 20X2

(c)

Expert Solution
Check Mark

Answer to Problem 19.13P

Statement of Activities for the year ended, 20X2

    ParticularsAmount (in $)Amount (in $)
    Unrestricted revenues, gains and support:
    Net patient service revenues5,830,000
    Gain on sale of equipment7,000
    Cafeteria and gift shop sales63,000
    Investment income157,000
    Donated services70,000
    10,000
    Net assets released fromprogram use restriction100,000397,000
    Total support and revenue (A)6,227,000
    Operating Expenses:
    Nursing services1,80,000
    Professional services1,200,000
    Fiscal services250,000
    General services1,550,000
    Bad debts120,000
    Administration 280,000
    Depreciation 400,000
    Total expenses (B)(5,600,000)
    Excess of revenue over expenses627,000
    Other items:
    Net assets released from fixed asset acquisition restriction140,000
    Increase in unrestricted net assets$767,000

Explanation of Solution

The statement of activities is the financial statement for a no- profit organization. In the above presented statement of activities, general fund’s various revenues and expenses are shown under their respective heads. The amount of unrestricted fund balance is $767,000

(d)

To determine

Introduction:Cash flow statement records the cash inflows and outflows of cash in an organization during a given period, mostly a financial year. It classifies the

activities of the company in three categories: operating, investing and financing, and discloses the sources and applications of cash for the particular period.

The cash flow for the year ended 20X2

(d)

Expert Solution
Check Mark

Answer to Problem 19.13P

Cash Flow for the year ended, 20X2

    ParticularsAmount (in $)
    Cash flow from operating activities
    Change in net assets767,000
    Adjustment to reconcile changes in net assets to net cash provided by operating activities:
    Depreciation400,000
    Gain on sale of property, plant and equipment(7,000)
    Decrease in net patient accounts receivable90,000
    Increase in due from specific fund(25,000)
    Decrease in inventories19,000
    Decrease in prepaid expenses6,000
    increase in deferred revenue- reimbursements20,000
    net assets released from fixed asset restriction(140,000)
    Net cash provided by operating activities1,130,000
    Investing activities
    Sale of property, plant and equipment17,000
    Transfer in from restricted plant fund140,000
    Purchase of investments(60,000)
    Net cash provided by investing activities97,000
    Financing activities0
    net increase in cash1,227,000
    Cash at the beginning of the year125,000
    Cash at the end of the year1,352,000

Explanation of Solution

The cash flow discloses the following incomes:

Operating income: $1,130,000

Investing income: $97,000

Financing income: 0

Cash at the beginning of the year is reported as $1,352,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Record in general journal form the following selected transactions for Meridian Hospital, a nongovernmental not for-profit institution. (or no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Gross charges accrued for patient services rendered during the period amounted to $7,870,000, of which $350,000 represented charity care for indigent patients 2. During the year the implicit price concessions for individual payors was determined to be $190,000 and contractual adjustments amounted to S435,000. 3. A wealthy donor donated $2.000,000 in cash to construct a new cardiology wing on the hospital. 4. During the yeat, the new cardiolody wing (see item 3) was one-half completed at a cost of $1.000.000. View transaction list Journal entry worksheet Record the $190,000 implicit price concessions for individual payers and $435,000 contractual adjustments. Note Enter debits befare credits Transaction General Journal Debit Credi 02…
Dippel Hospital's December 31, 20X2, balance sheet reported hospital net assets of $8,645.  Dippel's 20X2 excess of revenue over expenses was $714.  What was reported as hospital net assets in Dippel's balance sheet at December 31, 20X1?
66. A private not-for-profit hospital provided $150,000 in charity care for the current year. The hospital should report this charity care as a. Net patient service revenue of $150,000 and pa- tient care expense of $150,000. b. Net patient service revenue of $150,000 on the statement of operations. c. Only in the notes to the financial statements. d. As an unpaid accounts receivable on the balance sheet. 67. The Johnson Hospital, a private not-for-profit hospital, received the following revenues in the cur- rent year: Proceeds from sales of the Hospital's flower shop Dividends and interest revenue not restricted $60,000 $20,000 Cash contributions for the renovation of the children's ward in the Hospital $200,000 Which of these amounts should be reported as other revenues and gains (other revenue) on the Statement of Operations? a. $280,000 b. $60,000 c. $80,000 d. $260,000 68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator revenues and gains…

Chapter 19 Solutions

Advanced Financial Accounting

Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education