17. St. Paterno’s Hospital had the following closing entries for the year ended December 31, 2017:

Non-operating: net realized and unrealized gains on investments	$12,000
Non-operating investment income: unrestricted	10,000
Operating revenues: other revenue	30,000
Operating revenues: patient-service revenue	3,750,000
Contractual adjustments: unrestricted		300,000
Operating expenses: professional care of patients		1,730,000
Operating expenses: administration		200,000
Operating expenses: general services		345,000
Unrestricted net assets		1,477,000
Temporarily restricted net assets	250,000
Reclassification from temporarily restricted
Net assets: satisfaction of equipment acquisition restrictions		250,000
Contribution revenue: permanently restricted	400,000
Permanently restricted net assets		400,000

Instructions

Use the Excel template for Question 17 to prepare, in good form, a statement of operations for the year ended December 31, 2017.

18. St. Paterno’s Hospital had the following closing entries for the year ended December 31, 2017:

Non-operating: net realized and unrealized gains on investments	$12,000
Non-operating investment income: unrestricted	10,000
Operating revenues: other revenue	30,000
Operating revenues: patient-service revenue	3,750,000
Contractual adjustments: unrestricted		300,000
Operating expenses: professional care of patients		1,730,000
Operating expenses: administration		200,000
Operating expenses: general services		345,000
Unrestricted net assets		1,477,000
Temporarily restricted net assets	250,000
Reclassification from temporarily restricted
Net assets: satisfaction of equipment acquisition restrictions		250,000
Contribution revenue: permanently restricted	400,000
Permanently restricted net assets		400,000

Instructions

Use the Excel template for Question 18 to prepare, in good form, a statement of changes in net assets for the year ended December 31, 2017, assuming beginning net assets are $1,650,000.

19. St. Paterno’s Hospital sees the following events occur in 2017:

1. Gross charges for patient services, all on account, were $1,000,000. Contractual adjustments with insurance companies amounted to $200,000.
2. The hospital received pledges for $100,000, to be received in 2018. The funds can be used for any purpose desired by the board.
3. Cash gifts of $200,000, specifically designated for cancer research, were received from donors.
4. $75,000 of the funds in Part C above were spent on salaries and benefits for research technicians.
5. Mortgage bond payments of $40,000 for principal and $30,000 for interest were made using unrestricted resources.
6. New equipment costing $70,000 was purchased using donor-restricted cash that was on hand at the beginning of the year.
7. Pledges of $90,000 made in 2016 for use in 2017 were collected.
8. Invoices of $75,000 for utilities and $12,000 for legal fees incurred this year were received. They will be paid later.
9. The hospital paid $15,000 for training using temporarily restricted resources that were on hand at the beginning of the year.
10. $650,000 cash was received related to the entries in Part A above.

Instructions

Use the Excel template for Question 19 to prepare appropriate journal entries for the events above.

20. Assume a federal agency experiences the following events:

1. The agency receives a warrant from the Treasury notifying the agency of appropriations of $6,000,000.
2. The OMB apportions one-fourth of the appropriation for the first quarter of the year.
3. The director of the agency allots $1,400,000 to program units.
4. The program units place orders for $950,000.
5. Supplies ($500,000) and services ($420,000) are received.
6. The items in Part E above are paid for.
7. Supplies of $380,000 were used in the quarter.

Instructions

Use the Excel template for Question 20 to prepare any necessary journal entries to reflect the events described above. If no entry is required, indicate “no entry.”

Answer rating: 100% (QA)

a Answer Statement of Operations for the Year Ended Dec 31 2017 Un... View the full answer