Not for Profit Hospital. The Phelps Community Hospital balance sheet as of December 31, 2010, follows.
Required
a. Record in general journal form the effect of the following transactions during the fiscal year ended December 31, 2011, assuming that Phelps Community Hospital is a not for profit hospital.
(1) Summary of revenue journal:
|
Patient services revenue, gross |
$3,584,900 |
|
Adjustments and allowances: |
|
|
Contracting agencies |
162,000 |
(2) Summary of cash receipts journal:
|
Interest on investments in Assets Limited as to Use |
7,350 |
|
Unrestricted grant from United Fund |
300,000 |
|
Collections of receivables |
3,520,600 |
(3) Purchases journal:
|
Administration expenses |
167,900 |
|
General services expenses |
181,200 |
|
Nursing services expenses |
278,800 |
|
Other professional services expenses |
263,100 |
|
(4) Payroll journal: |
|
|
Administration expenses |
253,700 |
|
General services expenses |
179,200 |
|
Nursing services expenses |
659,200 |
|
Other professional services expenses |
422,400 |
|
5) Summary of cash payments journal: |
|
|
Interest expense |
280,000 |
|
Payment on mortgage principal |
500,000 |
|
Accounts payable for purchases |
936,800 |
|
Accrued payroll |
1,579,500 |
|
Transfer to Assets Limited as to Use |
30,000 |
(6) The following additional information relates to assets limited as to use:
(a) $10,000 in CDs matured on which $590 in interest was earned.
(b) $30,000 was reinvested in CDs.
(c) $12,300 in equipment was purchased.
(7) Depreciation charges for the year amounted to $117,000 for the buildings and $128,500 for equipment.
(8) Other information:
(a) Provision for uncollectible receivables was increased by $3,800.
(b) Supplies inventory:
|
12/31/2010 |
12/31/2011 |
|
|
Administration expenses |
$ 8,000 |
$ 7,300 |
|
General services expenses |
8,700 |
9,000 |
|
Nursing services expenses |
17,000 |
16,800 |
|
Other professional |
|
|
|
services expenses |
37,300 |
40,000 |
|
Totals |
$71,000 |
$73,100 |
(c) Portion of mortgage payable due within one year, $500,000.
(9) Assume that there was no change in fair value of investments at yearend.
(10) Provisions for bad debts, interest expense, and depreciation expense were allocated to functional expense accounts in proportion to their reallocation balances. Nominal accounts were closed.
(11) Reflecting the net increase in Assets Limited as to Use of $25,640 (see transactions 2, 5, and 6), record the increase in Net Assets—Unrestricted, Designated for Plant Replacement.
b. Prepare a balance sheet as of December 31, 2011.
c. Prepare a statement of operations for the year ended December 31, 2011.