Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year ended
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During 2013, Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $4,000. Harrison notified Lennon that it was donating the supplies to the hospital. At the end of 2013, Lennon had board-designated assets consisting of cash of $60,000 and investments of $800,000.
Lennon is a private not-for-profit organization: How much should Lennon record as patient service revenue and how much as net patient service revenue? How should Lennon record the donation of the supplies? How are the board-designated assets shown on the balance sheet?
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Related Book For
Advanced Accounting
ISBN: 978-0078025402
11th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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