Transactions plus multiple statements. Happy Valley Hospital, Inc had the following ending balances (in thousands) for its
Question:
Transactions plus multiple statements. Happy Valley Hospital, Inc had the following ending balances (in thousands) for its assets, liabilities, and net assets as of Dec 31st 20X0.
Givens
Cash …..$54,900
Accounts receivable…..$54,000
Allowance for uncollectible…..$8,000
Inventory for Supplies…..$4,000
Prepaid insurance…$9,000
Long term investments….$98,000
Plant, property and equipment…..$355,000
Accumulated depreciation…..$90,000
Short term accounts payable…..$12,500
Accrued expenses…..$29,000
Long-term debt..$69,000
Net assets without donor restrictions…..$346,400
Net assets with donor restrictions…..$11,900
List and record each 20X1 transaction under the accrual basis of accounting. Then develop a balance sheet at end-of-years 20X0 and 20X1, a statement of operations, and a statement of changes in net assets for the year ended 12/31/20X1.
a. The hospital made a cash payment of $5,100,000 towards outstanding accounts payable.
b. The hospital received $9,200,000 in cash from a donor who restricted its use. (hint: this transaction increases the with donor restrictions net asset account).
c. The hospital provided $323,000,000 of services on credit.
d. The hospital consumed $5,630,000 of supplies in the provision of its ambulatory services.
e. The hospital paid cash for accurate interest expenses of $4,800,000.
f. The hospital collected $214,000,000 in cash from outstanding accounts receivable.
g. The hospital incurred $8,000,000 in general expenses that it paid for in cash.
h. The hospital made a $15,800,000 cash principal payment toward its long-term debt.
i. The hospital collected $45,000,000 in cash from outstanding accounts receivable.
j. The hospital purchased $60,000,000 of supplies on credit.
k. The hospital earned, but did not receive, $7,000,000 in income from its restricted net assets. The income can be used for general operations.
l. The hospital incurred $3,300,000 in interest expense but has not yet paid for in cash.
m. The hospital incurred $280,000,000 in labor expenses, which it paid for in cash.
n. The hospital made a cash payment of 3,300,000 in advance for insurance.
o. The hospital transferred $3,200,000 in cash to its parent corporation.
p. The hospital incurred $9,000,000 in depreciation expense.
q. The hospital's prepaid insurance of $2,600,000 expired for the year.
r. The hospital estimated $900,000 in bad debt expense.
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav