Suppose you are a financial manager in the Memorial Hospital, which is a nonprof

Question

Suppose you are a financial manager in the Memorial Hospital, which is a nonprofit organization. Create a transaction worksheet. The Memorial Hospital uses the accrual accounting to record financial transactions. Provide a transaction worksheets completed Also, provide a Statement of Financial Position and Statement of Activity for the Hospital. Beginning balance: If there is no any explanation, the beginning balance is zero Transaction 1. The Hospital has employees who earned $800,000 for the year. 90 percent of the total amount of wage had been paid by the end of this fiscal year. But, 10 percent of the total wage will be paid three months after the beginning of the next fiscal year. Transaction 2. The Hospital received pledges of gifts in the amount of $21,000 to be used at the board of trustees considers appropriate. But, the Hospital can use it from 2017 Transaction 3. The Hospital expects that 20 percent of the pledges will not be collected. Transaction 4. The Hospital collected $10,000 cash on the pledges received in Transaction 2 Transaction 5. The Hospital received a gift of Treasury bond that had a fair market value of $2,700 total at the time of the gift. The donor said that the proceeds of the bonds can be used for any purposes. Transaction 6. The Hospital earned an interest, $200, from the Treasury bond issuer, the U.S federal government. Transaction 7. The Hospital billed patients $100,000 after providing health care services to them. But, the hospital expects that 5 percent of the bills will not be collected. Transaction 8. The Hospital issued bonds, $50,000, to purchase new equipment. Transaction 9. The Hospital purchased the new equipment for $50,000 by using the money from the bonds. Transaction 10. The Hospital recorded a depreciation expenditure for this year. The new equipment can be used 10 years and salvage value is $2,000

Explanation / Answer

25,800.00

Transaction Workhseet of Memorial Hospital Assets Liabilities Net Assets Cash Pledges Receivable, Net Accounts Receivable Investments Equipment Wage Payable Bond Payable Unrestricted Temporarily Restricted Beginning Balance Transaction 1 8,00,000.00        80,000.00 Wages -7,20,000.00 Transaction 2           21,000.00 Pledge Received 21,000.00 Transaction 3 Transaction 4      10,000.00         -10,000.00 Bond received           2,700.00 Transaction 5         2,700.00 Transaction 6            200.00 Interest earned              200.00 Transaction 7      95,000.00 Patient Services        95,000.00 Transaction 8      50,000.00       50,000.00 Transaction 9    -50,000.00    50,000.00 Transaction 10     -4,800.00 Depreciation     4,800.00 Ending Balance 8,10,200.00           11,000.00      95,000.00         2,700.00    45,200.00        80,000.00       50,000.00                                -   -6,22,100.00       -  

25,800.00

Memorial Hospital Statement of Financial Position as on December 31, 2015 Assets Liabilities Cash -7,09,800.00 Wage Payable        80,000.00 Pledges Receivable, Net        11,000.00 Bond Payable        50,000.00 Accounts Receivable        95,000.00 Investments          2,700.00 Equipment        45,200.00 Net Assets Unresticted -7,04,800.00 Temporarily Restricted        18,900.00 Total Assets -5,55,900.00 Total Liab & Net Assets -5,55,900.00

Memorial Hospital Statement of Activities for the year ending December 31, 2015 Revenues and Support Unrestricted Temporarily Restricted Total Pledge Received                             21,000.00 Bond Received                                2,700.00 Interest Earned                       200.00 Patient Service Income                 95,000.00 Total Revenue                 95,200.00                             23,700.00 Expenses Wages             8,00,000.00 Depreciation                                4,800.00 Total Expenses             8,00,000.00                                4,800.00 Change in Net Assets            -7,04,800.00                             18,900.00 Net Assets Beginning                                -                                               -   Net Assets Ending            -7,04,800.00                             18,900.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---