The following events are for Tubac Center, a not-for-profit hospital. The hospital records expense data based on the nature of the expense, such as wages, salaries, and benefits.
a.
Patient services amounting to $300,000 were billed. A 5% allowance for uncollectibles is to be recorded.
b.
Of $70,000 gross billings in part (a), third-party payers remitted $62,000 in full settlement. The remaining $8,000 is a contractual adjustment.
c.
The board of trustees authorized $90,000 to increase the malpractice fund held by a trustee.
d.
Supplies costing $77,000 were requisitioned from inventory maintained on a perpetual basis. These supplies were used by professional services.
e.
Nurses' salaries of $110,000 were incurred. Of this amount, $8,000 of accrued benefits were unpaid. Ignore payroll deductions.
f. $200,000 of the temporarily restricted net assets are reclassified to cover specified, current operations.

Required:
Prepare the necessary journal entries.

Question

The following events are for Tubac Center, a not-for-profit hospital. The hospital records expense data based on the nature of the expense, such as wages, salaries, and benefits.
a.
Patient services amounting to $300,000 were billed. A 5% allowance for uncollectibles is to be recorded.
b.
Of $70,000 gross billings in part (a), third-party payers remitted $62,000 in full settlement. The remaining $8,000 is a contractual adjustment.
c.
The board of trustees authorized $90,000 to increase the malpractice fund held by a trustee.
d.
Supplies costing $77,000 were requisitioned from inventory maintained on a perpetual basis. These supplies were used by professional services.
e.
Nurses' salaries of $110,000 were incurred. Of this amount, $8,000 of accrued benefits were unpaid. Ignore payroll deductions.
f. $200,000 of the temporarily restricted net assets are reclassified to cover specified, current operations.
 
Required:
Prepare the necessary journal entries.

Quizplus · Accepted Answer

The Answer of The following events are for Tubac Center, a not-for-profit hospital. The hospital records expense data based on the nature of the expense, such as wages, salaries, and benefits.
a.
Patient services amounting to $300,000 were billed. A 5% allowance for uncollectibles is to be recorded.
b.
Of $70,000 gross billings in part (a), third-party payers remitted $62,000 in full settlement. The remaining $8,000 is a contractual adjustment.
c.
The board of trustees authorized $90,000 to increase the malpractice fund held by a trustee.
d.
Supplies costing $77,000 were requisitioned from inventory maintained on a perpetual basis. These supplies were used by professional services.
e.
Nurses' salaries of $110,000 were incurred. Of this amount, $8,000 of accrued benefits were unpaid. Ignore payroll deductions.
f. $200,000 of the temporarily restricted net assets are reclassified to cover specified, current operations.
 
Required:
Prepare the necessary journal entries.

The Following Events Are for Tubac Center, a Not-For-Profit Hospital