Govt and Nonprofit Accounting
(27.)
Listed below are selected transactions form the City ofWatertown Hospital. All amounts are in thousands of dollars.
Transactions:
1. The hospital provided patient services during the year thathad standard charges of $12,500. Contractual adjustments awarded topatients under contracts with insurance companies and undergovernment programs totaled $2,000. Uncollectible accounts areexpected to be approximately $800.
2. Nursing and other professional salaries paid during the yeartotaled $2,300.
3. Depreciation for the year was $500 for the building and $900for the equipment.
4. Medical supplies costing $2,600 were purchased durign theyear. The inventory of supplies increased $200 at the beginning ofthe year to $300 at the year end.
5. The hospital received $4,000 to be used for the purchase ofspecialized diagnostic equipment.
6. THe hospital received a $500 gift to be used for providingspecialized coronary care services to patients.
7. The hosptial purchased $2,000 of diagnostic equipment withthe donation received for that purpose.
8. The hospital incurred $400 of operating expenses for the careof coronary patients constient with the purposes of thatdonation.
9. The hospital issued $5,000 of 20-year, 8% bonds at par atmid-year to finance a new additionf or the hospital.
10. The hospital estimates that malpractice claims against thehospital of $400 will ultimately result in liabilities of $100 thatwill have to be paid, but probably will not have to be paid uringthe next fiscal year.
Requirement: Prepare the journal entiresrequired of a government hospital for these transactions
I found this question to be really difficult, please help ifpossible, thank you!
