the following information was taken from the books of garden court hospital for the 4375576

The following information was taken from the books of Garden Court Hospital for the year ended December 31, 2014: 1. The hospital received $60,000,000 in cash from patients it cared for during the year. Another $30,000,000 is due from patients, and $15,000,000 is due from various insurance companies, all at standard charge rates. Revenues from other nursing services amounted to $2,500,000 and revenues from other professional services were $6,000,000. Only $4,000,000 of those revenues were collected in cash during the year; half of these cash collections related to nursing services. Other revenue, mostly from cafeteria sales, amounted to $2,000,000. Except for cafeteria sales, all revenues flowed through accounts receivable. 2. Garden Court has certain agreements with various insurance companies under which standard rates were adjusted downward by $2,100,000. Garden Court is also involved in a community assistance program; the hospital provided $1,600,000 of charity and other free services. An allowance for uncollectible accounts was established based on one percent of all revenue flowing through accounts receivable in 2014. Receivables written off in 2014 were $800,000. 3. Supplies costing $5,100,000 were ordered and received in 2014; however, only half have been paid for as of the end of 2014. A pharmaceutical company donated medicinal supplies with a fair value of $2,000,000. In addition, an appliance company donated a large refrigeration unit; its book value to the appliance company was $4,000,000 and its fair market value was $6,000,000. 4. Garden Court’s principal expense categories are salaries and wages, supplies, and other operating expenses. An allocation of these expenses among the principal service categories shows the following: Of these expenses, $1,000,000 of wages and $1,200,000 of other operating expenses remain unpaid at year-end. 5. Early in 2014, Garden Court received a gift to be used for conducting research on a deadly and intractable disease. Of the $4,000,000 received, $1,800,000 was expended on the research. Another $2,000,000 was invested in bonds and earned interest of $300,000. The donor specified that investment income is restricted for the designated research purposes. 6. A friend of the hospital donated marketable securities worth $20,000,000. These securities cost the donor $15,000,000 in 2010. The principal is to be maintained and 75 percent of the income is restricted for research on brain diseases; the balance is available for current operating expenses. During 2014, $1,600,000 in dividends were received and $1,000,000 was expended on the designated research. 7. The hospital is replacing its scanning equipment. Volunteers conducted a fund-raising campaign to finance the new equipment and raised $15,000,000 in cash. In order to cover the $40,000,000 cost of the equipment, a $25,000,000 loan was obtained. The hospital purchased the new equipment in late November. Sale of the old equipment (book value, $2,000,000) yielded $2,500,000 in proceeds. Required Prepare journal entries to record the transactions of Garden Court Hospital for 2014. View Solution:
The following information was taken from the books of Garden

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