The following selected events and transactions were recorded byMilos County Hospital.
- Gross charges for hospital services, all charged to accountsand notes receivable, were as follows:
| Patient service revenue | $1,664,900 |
- The hospital cafeteria and gift shop had cash sales of$295,300.
- Additional information determined subsequently to recordingpatient service revenues and relating to the current year is asfollows:
| | |
| Contractual adjustments | $ | 632,000 |
| Provision for bad debts | | 30,200 |
| Charity care | | 261,400 |
|
- A federal cost reimbursement research grant of $350,000 wasawarded. As of the end of the year, $200,000 in expenses related tothe grant had been made.
- Vouchers totaling $1,326,540 were issued for the followingitems:
| | |
| Fiscal and administrative services expenses | $ | 194,440 |
| General services expenses | | 253,100 |
| Nursing services expenses | | 585,000 |
| Other professional services expenses | | 185,600 |
| Inventory | | 101,200 |
| Expenses accrued at December 31 | | 7,200 |
|
- Collections of accounts receivable totaled $1,159,000. Accountswritten off as uncollectible amounted to $11,900.
- Cash payments on vouchers payable (paid to employers andsuppliers) during the year were $1,031,200.
- Supplies of $99,770 were issued to nursing services.
- On December 31, accrued interest income on investments was$800.
- Depreciation of buildings and equipment was as follows:
| | |
| Buildings | $ | 51,000 |
| Equipment | | 73,000 |
|
11. On December 31, closing entries were made in the generaljournal.
Required
- Prepare closing entries in accordance with the standards for agovernmental health care entity that follows proprietary fundaccounting. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
- Calculate the net patient service revenue that would bereported on the statement of revenues, expenses, and changes in netposition.
