Question 1

Dura Foundation, a voluntary health and welfare organization dedicated to finding medical cures and supported by contributions from the general public, included the following costs in its Statement of Functional Expenses for the year ended December 31, 2011:  What should Dura Foundation report as program service expenses?

Accepted Answer

The answer of Dura Foundation, a voluntary health and welfare...

Question 2

What are third party payors? Why are their interests important in accounting for health care entities?

Accepted Answer

The answer of What are third party payors? Why are...

Question 3

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000.
Prepare the necessary journal entry to record the revenue and receivables.

Accepted Answer

The answer of For the month of December 2011, patient...

Question 4

A not-for-profit organization provides the following information for the year:  Required:
Prepare the journal entries for these transactions.

Accepted Answer

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Question 5

How does a recipient not-for-profit organization record the receipt of a gift that will be transferred without restriction to another charitable organization? What if the donor retains the right to revoke or redirect the gift?

Accepted Answer

The answer of How does a recipient not-for-profit organization record...

Question 6

The Yelton Center is a voluntary health and welfare organization. During 2010, unrestricted pledges of $780,000 were received by the center, sixty percent of which were payable in 2010, with the remainder payable in 2011 (for use in 2011). Officials estimated that fifteen percent of these pledges will be uncollectible.
Required:
How much should the Yelton Center report as revenue for 2010?

Accepted Answer

The answer of The Yelton Center is a voluntary health...

Question 7

What financial statements would normally be prepared by a voluntary health and welfare organization?

Accepted Answer

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Question 8

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000.
$520,000 of the $2,720,000 was expected to be uncollectible.
Required:
Prepare the necessary journal entry to record the anticipated uncollectible amount.

Accepted Answer

The answer of For the month of December 2011, patient...

Question 9

Dura Foundation, a voluntary health and welfare organization dedicated to finding medical cures and supported by contributions from the general public, included the following costs in its Statement of Functional Expenses for the year ended December 31, 2011:  What should Dura Foundation report as supporting service expenses?

Accepted Answer

The answer of Dura Foundation, a voluntary health and welfare...

Question 10

A not-for-profit organization (Charity A) raises money for other charitable organizations. Charity A receives $10,000 to distribute to Charity
B.
B.
Assume that the donor retains the right to revoke or redirect the gift.
Prepare the journal entries for Charity A and Charity
B. The entries should be for the gift when received by Charity A, and when the gift is distributed for Charity

Accepted Answer

The answer of A not-for-profit organization (Charity A) raises money...

Question 11

How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What types of revenues are recognized by voluntary health and welfare organizations?

Accepted Answer

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Question 12

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000.
In this month, there were several patients that had no health insurance and due to their low income level, the hospital decided that $85,000 of receivables would not be collectible.
Required:
Prepare the necessary journal entry to reflect the decision to consider the $85,000 as charity care.

Accepted Answer

The answer of For the month of December 2011, patient...

Question 13

A local social worker, earning $12 per hour working for the state government, contributed 600 hours of time at no charge to the Yelton Center, a voluntary health and welfare organization. If not for these donated services, an additional staff person would have been hired by the organization.
Required:
How should the Yelton Center record the contributed services?

Accepted Answer

The answer of A local social worker, earning $12 per...

Question 14

During 2011, the Garfield Humane Society, a voluntary health and welfare organization, received cash donations of $892,000 and membership dues of $62,000. A member of the Humane Society donated services valued at $8,000 that would otherwise have been performed by a paid staff member. A pet food manufacturer donated dog food valued at $16,400. The Humane Society received a gift of $140,000, to be used in building a new animal shelter. Also during 2011, investments held by the Humane Society earned interest of $2,000.
Required:
Prepare a schedule showing the amount that the Garfield Humane Society should have recorded for public support for 2011.

Accepted Answer

The answer of During 2011, the Garfield Humane Society, a...

Question 15

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000.
The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000.
Required:
Prepare the necessary journal entry to record the contractual adjustments.

Accepted Answer

The answer of For the month of December 2011, patient...

Question 16

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

Accepted Answer

The answer of For not-for-profit organizations, what is the difference...

Question 17

A not-for-profit organization receives a computer as a donation (valued at $2,000). Prepare the journal entry for the transaction.

Accepted Answer

The answer of A not-for-profit organization receives a computer as...

Question 18

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors.
Required:
Prepare the journal entry to accrue patient charges for the month.

Accepted Answer

The answer of For May 2011, Carlington Hospital's charges for...

Question 19

A not-for-profit organization (Charity A) raises money for other charitable organizations. Charity A receives $10,000 to distribute to Charity
B.
Assume there are no donor rights to revoke or redirect the gift.
Prepare the journal entries for Charity A when the gift is received, and for Charity A and Charity B when the gift is distributed.

Accepted Answer

The answer of A not-for-profit organization (Charity A) raises money...

Question 20

For a not-for-profit organization, when is recognition of contributions of artworks and historical treasures not required?

Accepted Answer

The answer of For a not-for-profit organization, when is recognition...

Quiz 18: Accounting for Not-For-Profit Organizations

What are third party payors? Why are their interests important in accounting for health care entities?

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. Prepare the necessary journal entry to record the revenue and receivables.

A not-for-profit organization provides the following information for the year: Required: Prepare the journal entries for these transactions.

How does a recipient not-for-profit organization record the receipt of a gift that will be transferred without restriction to another charitable organization? What if the donor retains the right to revoke or redirect the gift?

What financial statements would normally be prepared by a voluntary health and welfare organization?

How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What types of revenues are recognized by voluntary health and welfare organizations?

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

A not-for-profit organization receives a computer as a donation (valued at $2,000). Prepare the journal entry for the transaction.

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

For a not-for-profit organization, when is recognition of contributions of artworks and historical treasures not required?