The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency: a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000. b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000. c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of dona- tion of $75,000. The donation was restricted to expenditure for modernization of equip- ment. The donation was accepted. d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset. e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements. f. Pledges of $60,000 and cash of $20,000 were received to defer operating expenses. Of the pledges, 10% are considered uncollectible. Term endowments of $10,000 matured and were released to cover operations. g. Equipment costing $250,000 was purchased on account. Restricted resources held for that purpose will be released from restriction over the useful life of the asset. h. The nursing home uses functional operating expense control accounts. Expenses for the year were as follows: Functions Nursing services Dietary services. Maintenance services. Administrative services Interest.. ... Subtotal (of which $253,000 is unpaid).. Depreciation [$20,000 from assets purchased with resources in items (d) and (g) above].. Total ...... $1,120,000 230,000 115,000 285,000 160,000 $1,910,000 60,000 $1,970,000 1. Omitting explanations, prepare journal entries for the foregoing events. 2. Prepare a statement of activities for the year ended December 31, 2019. The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency: a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000. b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000. c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of dona- tion of $75,000. The donation was restricted to expenditure for modernization of equip- ment. The donation was accepted. d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset. e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements. f. Pledges of $60,000 and cash of $20,000 were received to defer operating expenses. Of the pledges, 10% are considered uncollectible. Term endowments of $10,000 matured and were released to cover operations. g. Equipment costing $250,000 was purchased on account. Restricted resources held for that purpose will be released from restriction over the useful life of the asset. h. The nursing home uses functional operating expense control accounts. Expenses for the year were as follows: Functions Nursing services Dietary services. Maintenance services. Administrative services Interest.. ... Subtotal (of which $253,000 is unpaid).. Depreciation [$20,000 from assets purchased with resources in items (d) and (g) above].. Total ...... $1,120,000 230,000 115,000 285,000 160,000 $1,910,000 60,000 $1,970,000 1. Omitting explanations, prepare journal entries for the foregoing events. 2. Prepare a statement of activities for the year ended December 31, 2019.
Expert Answer:
Answer rating: 100% (QA)
Qu 1 Journal Entries a Accounts Receivables To Reve... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these accounting questions
-
The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency: a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible...
-
The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency: a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
A solid of constant density is bounded below by the plane z = 0, on the sides by the elliptical cylinder x 2 + 4y 2 = 4, and above by the plane z = 2 - x. a. Find x and y. b. Evaluate the integral...
-
There are several important disclosure items to consider when auditing the purchasing process. Discuss what they are and why they are important.
-
Zimmer Company completed its first year of operations on December 31, 2017. Its initial income statement showed that Zimmer had sales revenue of $198,000 and operating expenses of $83,000. Accounts...
-
Which inventory costing method assigns the newest, most recent, costs incurred during the period to ending inventory? a. Specific-unit cost b. First-in, first-out (FIFO) C. Last-in, first-out (LIFO)...
-
You expect to invest your funds equally in four stocks with the following expected returns: Stock Expected Return A........ 16% B........ 14 C........ 10 D........ 8 At the end of the year, each...
-
Question 5 Trust&Co. has the opportunity to undertake one of two projects, both requiring a $100M investment. Suppose that all investors are risk neutral, and that initially the risk free rate is...
-
This and similar cases in later chapters focus on the financial statements of a real company Target Corporation, a discount merchandiser that sells a wide assortment of general merchandise and food....
-
There are many strategies for managing the tendency to postpone getting work done, including Group of answer choices rationalizing that failure comes from running out of time, not because you were...
-
(10 points) Marketing Message: Describe the message you plan to communicate to the target market. This should be a focused message that explains the benefits of the product/event in a way that...
-
Bidding-your-valuation is the unique symmetric BNE of the second-price auction (SPA) when bidders have SIPV. However, this is not the unique BNE in a SPA. In fact, there are other asymmetric...
-
y = x ^ 2 - 3 x + 4 x + y = 4 Solve the system of equations. Show your work.
-
Face value : 1000 $ Coupon rate : 10% (paid semi-annually) Yield : 9% (compound semi-annually) Maturity: 10 years Conversion ratio : 30 Price of shares : 41 $ Price of the bond ?
-
June 1 The owner, 3 4 4 5 7 7 8 11 12 _invested P 150,000. Purchased furniture P 29,000 plus 12% VAT for cash. Purchased goods on account from ABC Co., P 19,700 plus 12% VAT terms: 2/10, n/30. Paid...
-
Suppose Martha Jean designs an experimental study as part of her paper for an advanced class in nonverbal communication research. The focus of her study is to examine the effects of personal space...
-
For the vector whose polar components are (Vr = 1, Vθ = 0), compute in polars all components of the second covariant derivative Vα;μ;ν. To find...
-
The statement of financial position of Washbud Private University as of the end of its fiscal year, June 30, 2018, is as follows: The following transactions occurred during the fiscal year ended June...
-
Using the data given in Problem assume that Raabe Company exchanged 14,000 of its $40 fair value ($1 par value) shares for 16,000 of the outstanding shares of Dalke Company. In Problem, July 1, 2016,...
-
Panther Company is about to acquire a 100% interest in Snake Company. Snake has identifiable net assets with book and fair values of $300,000 and $500,000, respectively. As payment, Panther will...
-
Form small groups for this exercise on claim and adjustment letters. Have each member of your group study the following two letters. Meet and discuss your reactions to the two letters. How...
-
You work in the customer relations department of a company that makes plumbing supplies. The head of product development has just handed you the draft of installation instructions for a sliding tub...
-
Study the excerpt from the Micron data flyer (2010, p. 9). Describe the designers use of alignment as a design principle. How effective is it? How would you modify it? Present your analysis and...
Study smarter with the SolutionInn App