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 uncollectible accounts is to be recorded, and an estimate of $45,000 was made for contractual adjustments.

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 uncollectible accounts is to be recorded, and an estimate of $45,000 was made for contractual adjustments.​
​
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 uncollectible accounts is to be recorded, and an estimate of $45,000 was made for contractual adjustments.​
​
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