Answer:
1. Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Dr Cash 6,455,000
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
8. Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000
Step-by-step explanation:
Preparation of the Journal entries for Sycamore Hospital.
1. Since we were told that the company Provided a total of the amount of $6,600,000 in patient services this means that the transaction will be recorded as:
Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Based on the information given we were told that the company had total operating expenses of the amount of $5,998,000 which means that the transaction will be recorded as:
Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Since we were told that Allowed contractual adjustments was the amount of $210,000 which is a deductions from gross patient revenue, which means that the transaction will be recorded as:
Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Based on the information given we were told that the company received a transfer of the amount of $200,000 for the payment of approved operating costs which means that the transaction will be recorded as:
Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Since the company received a transfer of the amount of $230,000 from the temporarily restricted plant fund in order to purchase new equipment for the hospital, this means that the transaction will be recorded as:
Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Since the company received the amount of $150,000 of unrestricted gifts, this means that the transaction will be recorded as;
Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Since the company collected accounts receivable except for the amount of $65,000 which was written off, this means that the transaction will be recorded as:
Dr Cash 6,455,000
(6,390,000 +65,000)
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
(6,600,000-210,000)
8. Based on the information given we were told that the company reported the amount of $90,000 as an increase in the market value, this means that the transaction will be recorded as:
Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000