6. Uncollectible accounts totaling $3,250 were written off. The allowance for un
ID: 2486162 • Letter: 6
Question
6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170.
Complete A, and B below:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Evanston General Hospital’s statement of operations for the current
year.
transactions (amounts summarized for the year). 1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care, $928,000 was paid by
uninsured patients, and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. 2. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. 3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital
during the year (see transaction 1). 4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients.
The full amount is expendable for that purpose. No activity occurred on this project during the current year. 5. A total of $965,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; medical seminars, 125,000;
unrestricted transfers from the Evanston General Hospital Foundation, $75,000; and fees for medical transcripts, $55,000.
6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170.
Complete A, and B below:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Evanston General Hospital’s statement of operations for the current
year.
Explanation / Answer
Journal Entries S.no. Particulars Debit Credit 1 Charity Care expense 450000 Cash 928000 Account Receivable - Insurance Company 8222000 Service revenue 9600000 2 General expenses 265000 Donated Phramaceuticals Inventory 265000 3 Cash 5365000 Account Receivable - Insurance Company 5365000 4 Cash 5000000 Donation 5000000 5 Cash 965000 Cafetaria & Gift shop revenue 710000 Medical seminars revenue 125000 Unrestricted transfer 75000 Medical transcripts revenue 55000 6 Allowance for uncollectible receivables 3250 Account receivable 3250 6 Bad debt expense 1170 Allowance for uncollectible receivables 1170 Note : ask other part seperately
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