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On July 1, 20X1, the hospital obtains a $150,000 short-term loan from a local bank.
Assume that Restful Hospital's fiscal year ends on December 31 and that adjustments for depreciation are made only at the end of each year.
Assume that Quaker Hospital employs the perpetual LIFO system of accounting for this supply item.
This equipment has an estimated useful life of eight years and a 20 percent salvage value.
Assuming the straight-line depreciation method, prepare the necessary entry to record the sale of the equipment.
On October 1, 20X5, this equipment is traded, along with $26,000 cash, for similar equipment having a list price of $72,000.
The accumulated depreciation on this equipment on March 31, 20X4, was $18,000.
The equipment has an estimated useful life of eight years and an estimated salvage value of $80.
Ready Hospital provides you with the following list of depreciable assets acquired at the beginning of the current year.
The old equipment had a fair value of $530; the new equipment had a fair value of $950.
In addition, the hospital paid $200 for freight and $800 for the construction of a wooden base and for making the proper electrical connections.
Explain what is meant by the declaration date, the record date, and the payment date with respect to corporate dividend distributions.
Should Sara Hospital record $2,000 of dividend income? Explain your answer.
Setsail Hospital purchased $100,000 face value of XYZ Company bonds at 104 percent on May 1, 20X1. Brokerage and other acquisition costs were $280.
At what amount should the investment in Paul stock be reported in Safeway's October 31, 20X1 balance sheet?
On August 1, 20X1, Pickard declared and distributed a 20 percent stock dividend. On October 1, 20X1, Sideway sold 100 shares of the Pickard stock at $323 /8.
On November 1, 20X1, Sheraton Hospital purchased May bell Company 10-year, 7 percent bonds with a face value of $50,000 for $49,167.
Samson Hospital purchased $1,200 (face value) of the 5 percent bonds of XYZ Company at 92 percent on July 1, 20X1.
When corporate bonds are purchased at a price higher or lower than face value, the premium or discount must be amortized by the purchaser.
How should the $18,000 be recorded in the accounts of the unrestricted fund?
Briefly describe the imprest system for operating a petty cash fund and state the principal advantages of the imprest system.
What amount should the hospital report as cash in bank in its March 31 balance sheet?
Here petty cash vouchers include a voucher for a $50 purchase of postage stamps. Unused stamps having a face value of $19 remain in the petty cash box.
What amount should the hospital's 20X1 statement of operations report as bad debt expense?
By what amount should bad debt expense previously accrued during 20X2 be increased on December 31, 20X1?