During 2015 the following transactions were recorded by the Baton Rouge Community Hospital a private sector not-for-profit institution.
A. Gross charges for patient services all charged to Patient Accounts Receivable amounted to 1,700,000.Contractual adjustments with third-party payers amounted to 450,000.
B. Charity services not included in transaction 1 would amount to 97,000 had billings been made at gross amounts.
C. Other revenues received in cash were parking lot 20,000, cafeteria 15,000, and gift shop 5,000
D. Cash gifts for cancer research amounted to 20,000 for the year, 35,000 was expended for cancer research technicians salaries (debit Operating Expense Salaries and Benefits)
E. Mortgage bond payments amounted to 50,000 for principal and 33,000 for interest. Assume unrestricted resources are used
F. During the year, the hospital received in cash unrestricted contributions of 40,000 and unrestricted income of 60,000 from endowment investments (It is the hospitals practice to treat unrestricted gifts as non operating income)
G. New equipment costing 140,000 was acquired using donor-restricted cash that was on hand at the beginning of the year. Baton Rouge’s policy is to record all equipment in the unrestricted net asset class.
H. An old piece of lab equipment that originally cost 50,000 and that had an undercoated cost of 10,000 was sold for 8,000 cash.
I. At the end of 2015 pledges received in the amount of 120,000 are intended to be paid and used for unrestricted purposes in 2016.
J. Cash contributions were received as follows: temporarily restricted for purposes other than plant, 40,000; temporarily restricted for plant acquisition 30,000.
K. Bills totaling 200,000 were received for the following items:
L. Utilities 120,000
M. Insurance 80,000
N. Depreciation of plant and equipment amounted to 180,000
O. Cash payments on vouchers payable amounted to 175,000.Another 800,000 was expended on wages and benefits. Cash collections of patient’s accounts receivable amounted to 1,080,000.
P. Closing entries were prepared
Record the transactions in the general journal of the Baton Rouge Community Hospital