The Trasque Hospital is a nongovernmental,not-for-profit hospital.During 2011,they had the following transactions.
1.Trasque's standard charges for services rendered amounted to $550,000.Contractual adjustments on those amounts with third-party payors amounted to $230,000.Bad debts on the remaining balance are estimated to be 10%.
2.The hospital received a cash donation of $20,000 to be used for medical equipment.
3.The hospital also received rent from a local shelter that uses the basement of their facility for overflow housing,amounting to $6,000 per year.
4.The hospital paid the following costs: Professional fees (doctors and physician assistants),$80,000;Nursing services,$70,000;and administrative services,$40,000.
5.The hospital paid for pharmaceuticals and medical supplies amounting to $110,000.The hospital had an agreement with the pharmaceutical and medical supply vendors to carry all inventory on consignment,due to their not-for-profit status.As a result,items are only paid for as consumed,and all inventory belongs to the vendors.
Required:
Prepare the journal entries for Trasque for 2011.

Question

Quizplus · Accepted Answer

The Answer of The Trasque Hospital is a nongovernmental,not-for-profit hospital.During 2011,they had the following transactions.
1.Trasque's standard charges for services rendered amounted to $550,000.Contractual adjustments on those amounts with third-party payors amounted to $230,000.Bad debts on the remaining balance are estimated to be 10%.
2.The hospital received a cash donation of $20,000 to be used for medical equipment.
3.The hospital also received rent from a local shelter that uses the basement of their facility for overflow housing,amounting to $6,000 per year.
4.The hospital paid the following costs: Professional fees (doctors and physician assistants),$80,000;Nursing services,$70,000;and administrative services,$40,000.
5.The hospital paid for pharmaceuticals and medical supplies amounting to $110,000.The hospital had an agreement with the pharmaceutical and medical supply vendors to carry all inventory on consignment,due to their not-for-profit status.As a result,items are only paid for as consumed,and all inventory belongs to the vendors.
Required:
Prepare the journal entries for Trasque for 2011.

The Trasque Hospital Is a Nongovernmental,not-For-Profit Hospital