Excel Based Problems
As of January 1, 2017, the trial balance for Haven Hospital was as follows:
|
Debits |
Credits |
| Cash |
$830,000 |
|
| Patient Accounts Receivable |
3,250,000 |
|
| Allowance for Uncollectible Patient |
|
|
| Accounts Receivable |
|
$650,000 |
| Contributions Receivable |
2,480,000 |
|
| Allowance for Uncollectible |
|
|
| Contributions Receivable |
|
353,000 |
| Supplies |
130,000 |
|
| Investments-Board Designated |
1,700,000 |
|
| Investments-Other |
10,100,000 |
|
| Property, Plant, and Equipment |
7,500,000 |
|
| Accumulated Depreciation- |
|
|
| Property, Plant, and Equipment |
|
4,600,000 |
| Accounts Payable |
|
600,000 |
| Long-Term Debt-Current Installment |
|
200,000 |
| Long-Term Debt-Noncurrent |
|
3,100,000 |
| Net Assets-Unrestricted-Board Designated |
|
1,700,000 |
| Net Assets-Unrestricted-Undesignated |
|
1,644,000 |
| Net Assets-Temporarily Restricted |
|
6,136,000 |
| Net Assets-Permanently Restricted |
|
7,007,000 |
| Totals |
$25,990,000 |
$25.990.000 |
During the fiscal year ended December 31, 2017, the following transactions occurred:
1. Patient service revenue amounted to $20,990,000. all recorded on account. Contractual adjustments were recorded in the amount of $3.800.000. Uncollectible accounts are estimated to be $620,000. Cash was received on account in the amount of $17,600,000.
2. Other revenue (cafeteria, parking lot, etc.) amounted to $2,580,400, all received in cash.
3. Patient accounts in the amount ()I' $430,000 were written off.
4. Unrestricted gifts and bequests were received in cash in the amount of $3,17,000. Unrestricted income on investments of endowment funds amounted to $400,000. (It is the hospitals practice to treat unrestricted gifts as non operating revenue.)
5. Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $95,000 and was received in cash. Do not increase board-designated net assets at this stage, but close out the revenue account to board-designated net assets in entry 19.
6. Investment income, restricted for donor-specified purposes, in cash in the amount of $250,000. Investment income, required by donor agreement to be added to endowment balances, was received in cash in the amount of $100,000.
7. Cash contributions were received in the following amounts: 52.001,000 for current restricted purposes; $2,450,000 for future plant expansion; and $1,050,000 required by the donor to be invested permanently in an endowment.
8. Pledges receivable in the amount of $2,100,000 were received in cash. These pledges were on hand at the beginning of the year (reflected in temporarily restricted net assets, for purposes of time) and were unrestricted as to purpose. In addition, pledges for endowment purposes were collected in the amount of $450,000.
9. $1,550,000 in temporarily restricted net assets was expended, as the donors stipulated, for cancer research. Debit Operating Expense-Salaries and Benefits, $1,400,000; and Operating Expense-Supplies, $150,000. (Assume the supplies were purchased with cash and used in the same year.)
10. $1,970,000 in temporarily restricted net assets was expended for equipment, as provided for by the donor. The policy of Haven Hospital is to record all property, plant, and equipment as unrestricted.
11. In addition, $600,000 was received in pledges for temporarily restricted purposes. It was decided that the allowance for contributions was sufficient.
12. Supplies were purchased in the amount of $690,000, on account.
13. Operating expenses (in addition to those already recorded in entries I and 9) for the year included: depreciation of $20,985,000 (paid supplies used of $687,000; and salaries and benefits In addition, the following expenses were recorded through Accounts Payable: utilities of $515,000 and insurance of $320,000.
14. Accounts payable were paid in the amount of $1,767,000.
15 Current installments of long-term debt were paid in the amount of $200,000. The portion to be paid next year is $300,000. Interest was paid in the amount of $181,000 and is reported as an Operating expense.
16. Investments, carried at a basis of $4,000,000, were sold for $4,050.000. The $50,000 gain is considered to be temporarily restricted.
17. Cash in the amount of $6,800,000 was invested. Of that amount, 595,000 was from Cash-Assets Whose Use Is Limited and is designated by the board for renewals and replacements (see entry 5).
18. A reading of the financial press indicated that investments increased in market value by $800,000. Of that amount, $250,000 was in investments designated by the board for renewals and replacements, $350,000 is required by donors to be added to endowment balances, and the remainder is unrestricted.
19. Closing entries were prepared.
Required:
a. Using the Excel template provided, prepare journal entries for each of the previous transactions.
b. Prepare a Statement of Operations for Haven Hospital for the year ended December 31, 2017.
c. Prepare a Statement of Changes in Net Assets for Haven Hospital for the year ended December 31, 2017.
d. Prepare a Statement of Financial Position for Haven Hospital as of December 31, 2017.
e. Prepare a Statement of Cash Flows for Haven Hospital for the year ended December 31, 2017, using the indirect method.