question archive The net assets in the general fund of Shaunavon Hospital, a not-for-profit entity, at the beginning of Year 6 was $90,000
The net assets in the general fund of Shaunavon Hospital, a not-for-profit entity, at the beginning of Year 6 was $90,000
Subject:PhilosophyPrice: Bought3
The net assets in the general fund of Shaunavon Hospital, a not-for-profit entity, at the beginning of Year 6 was $90,000. The following are transactions and events of the general fund for the year ended December 31, Year 6:
1. Billed a total of $2,800,000 for patient services.
2. Incurred operating expenses of $2,910,000, as folllows:
Nursing services $1,235,000
Other professional expenses 625,000
Fiscal services 115,000
General services 745,000
Bad debts 60,000
Accounts credited for operating expenses:
Cash $2,580,000
Allowance for uncollectible accounts 60,000
Accounts payable 110,000
Inventory 120,000
Donated nursing services 40,000
3. Received a transfer of $70,000 from the nursing services fund for payment of approved operating costs in accordance with the terms of the restricted gift
4. Transferred $100,000 to the capital fund to purchase new equipment for the hospital
5. Received $80,000 of unrestricted donations.
6. Collected accounts receivable of $2,900,000 and wrote off $35,000 of the uncollectible accounts.
7. Reported a $35,000 increase in the market value of the investment securities from the beginning of the period. The board designated this entire income from other than current operations
Required
(a) Prepare journal entries in the general fund for each of the transactions and events.
(b) Prepare the statement of operations and changes in fund balance for the general fund for Year 6.
