Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-34 Local Not-for-profit Health Care Entity General Journal a.

Investments - Internally Restricted Cash Cash Contributed Support - Permanently Restricted Net Assets Inventory of Medicines Cash Reclassification - Temporarily Restricted Net Assets Reclassification - Unrestricted Net Assets d. Accounts Receivable - Patients Accounts Receivable - Third Party Payors Patient Service Revenues Depreciation Expense Accumulated Depreciation Cash Interest Revenue - Unrestricted Net Assets (Internally Bad Debts Expense Allowance for Uncollectible Accounts Contractual Adjustment Allowance for Reduced Charges h. Supplies Expense Inventory of Medicines Cash Investments - Internally Restricted Gain on Sale of Investments - Unrestricted Net Assets Equipment Cash Reclassification - Temporarily Restricted Net Assets Reclassification - Unrestricted Net Assets j. Cash Pledges Receivable Allowance for Uncollectible Pledges Contributed Support - Unrestricted Net Assets Contributed Support - Temporarily Restricted Net Assets 160,000 160,000 80,000 80,000 25,000 25,000 25,000 25,000 120,000 480,000 600,000 38,000 38,000 15,000 15,000 20,000 20,000 30,000 30,000 25,000 25,000 172,000 160,000 12,000 212,000 212,000 25,000 25,000 12,600 98,000 9,000 12,600 89,000

b.

c.

e.

f.

g.

i.

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-34 Local Not-for-profit Health Care Entity Changes in Net Asset Classifications For the Year Ended December 31, 2008 Temporarily Permanently Restricted Restricted 80,000 (25,000) (25,000) 89,000 39,000 80,000
Correct! Correct!

a. b. c. d. e. f. g. h. i. j.

Announced equipment acquisition plan; invested funds Received donation for nursing salary supplements Expended money for medicines Charged patients Recorded depreciation expense Received interest income on investments from item a Estimated bad debts Contractual Adjustment Medications from c were consumed Investments sold Equipment purchased Pledges received Increase (Decrease) in Net Assets

Unrestricted 25,000 600,000 (38,000) 15,000 (20,000) (30,000) (25,000) 12,000 25,000 12,600 576,600
Correct!

Given P18-34: Local Not-for-profit Health Care Entity: a. b. c. d. Announced equipment acquisition plan; invested funds Received donation for nursing salary supplements Expended money for medicines Charged patients Portion to be paid by third-party payors e. Recorded depreciation expense f. Received interest income on investments from (a.) g. Estimated as uncollectible accounts Contractual adjustments expected by third-party payors h. Medications from (c.) were consumed i. Investments from (a.) were sold Equipment purchased j. Unrestricted pledges received Pledges paid immediately Pledges estimated as uncollectible Present value of receivables $ 160,000 80,000 25,000 600,000 80% 38,000 15,000 20,000 30,000 25,000 172,000 25,000 126,000 10% 9,000 98,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-35 UNIVERSITY OF DANVILLE General Journal a. Tuition Receivable Tuition Revenue Investments Contributions-Permanently Restricted Cash Contributions-Temporarily Restricted Scholarships-Financial Aid Tuition Receivable Salary Expenses Cash Salary Expenses Contributed Service Revenues Equipment Cash Temporarily Restricted Assets-Reclassification Unrestricted Net Assets-Reclassification h. Investments Unrealized Gain on Investments Cash Dividend Revenue-Unrestricted Net Assets Depreciation Expense Accumulated Depreciation Cash-Internally Restricted Cash Pledge Receivable Contributions-Temporarily Restricted 1,200,000 1,200,000 300,000 300,000 700,000 700,000 100,000 100,000 310,000 310,000 80,000 80,000 200,000 200,000 200,000 200,000 30,000 30,000 9,000 9,000 32,000 32,000 100,000 100,000 7,000 7,000

b.

c.

d.

e.

f.

g.

i.

j.

k.

l.

m. No entry

n.

Utilities and Other Expenses Cash No entry

212,000 212,000

o.

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-35 UNIVERSITY OF DANVILLE Statement of Activities Temporarily Permanently Unrestricted Restricted Restricted Net Assets Net Assets Net Assets Revenues and Gains: Tuition Less Scholarships Unrealized Gain in Investments Dividend Revenue Contributions: Cash and Other Assets Services Total Revenues, Gains, and Contributions Net Assets Released from Restriction Totals Operating Expense: Salaries Depreciation Utilities and Other Expenses Total Expenses Increase in Net Assets Net Assets-Beginning of Year Net Assets-End of Year 1,100,000 30,000 9,000 707,000 80,000 1,189,000 200,000 1,389,000 707,000 (200,000) 507,000 300,000 330,000 330,000

Total 1,100,000 30,000 9,000 1,007,000 80,000 2,226,000 2,226,000

390,000 32,000 212,000 634,000 755,000 400,000 1,155,000

Correct!

507,000 200,000 707,000

Correct!

330,000 100,000 430,000

Correct!

390,000 32,000 212,000 634,000 1,592,000 700,000 2,292,000

Correct!

Given P18-35: UNIVERSITY OF DANVILLE Current year net assets: Total Unrestricted Temporarily restricted Permanently restricted Transactions occurring during the year: a. Tuition charged b. Donation of investments - cost to owner Value at time of gift c. Cash donated for laboratory equipment d. Scholarships given to students e. Salary expenses paid f. Faculty member contributes services g. Money from (c.) spend on laboratory equipment h. Investments from (b.) valued at year end i. Dividends received from investments from (b.) j. Depreciation expense computed k. Unrestricted assets set aside for purchase of library books l. Money promised to school in 3 years Present value of this money m. Value of art object received as gift n. Utilities and other expenses paid o. Value of services donated to library

700,000 400,000 200,000 100,000

$ 1,200,000 100,000 300,000 700,000 100,000 310,000 80,000 200,000 330,000 9,000 32,000 100,000 10,000 7,000 70,000 212,000 103,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-39

Pledges Receivable Contribution revenue - Interest-unrestricted net assets Cash Allowance for uncollectible pledges Pledges Receivable Cash Contributions revenue-Unrestricted net assets Salary Expense Cash Reclassification-Temporarily restricted net assets Reclassification-Unrestricted net assets Cash Contributions revenue-Temporarily restricted Land, Buildings & Equipment Note Payable Cash Reclassification-Temporarily restricted net assets Reclassification-Unrestricted net assets Cash Membership revenue-Unrestricted net assets Cash Investment revenue-Unrestricted net assets

20,000 20,000 100,000 4,000 104,000 180,000 180,000 90,000 90,000 15,000 15,000 12,000 12,000 500,000 450,000 50,000 50,000 50,000 30,000 30,000 30,000 30,000

WATSON FOUNDATION Statement of Activities For the Year Ending December 31, 2007 Unrestricted Net Assets 180,000 20,000 30,000 30,000 260,000 65,000 325,000 Temporarily Permanently Restricted Restricted Net Assets Net Assets 161,000 6,000

Contributions revenue Contributions - Interest revenue Investment revenue Membership revenue Total revenues Net assets release from restriction Total revenues and net assets released from restriction

167,000 (65,000) 102,000

Expenses: General and administrative Rent Salary Advertising Utilities Depreciation Interest Total expenses Excess of total revenues and net assets released from restriction over expenses Net assets at beginning of year Net assets at end of year

(12,000) (90,000) (15,000) (16,000) (40,000) (15,000) (188,000) 137,000

102,000

400,000 537,000
Correct!

100,000 202,000
Correct!

300,000 300,000
Correct!

WATSON FOUNDATION Statement of Financial Position December 31, 2008 ASSETS Cash Pledges receivable (net) Investments Land, buildings, and equipment (net) Total assets LIABILITIES Notes payable NET ASSETS Unrestricted Temporarily restricted Permanently restricted

254,000 275,000 300,000 660,000 1,489,000

Correct!

450,000
Correct!

$ 537,000 202,000 300,000

$ 1,039,000
Correct!

AccountNames Allowance for uncollectible pledges Cash Contribution revenue - Interest-unrestricted net assets Contributions revenue-Temporarily restricted Contributions revenue-Unrestricted net assets Investment revenue-Unrestricted net assets Land, Buildings & Equipment Membership revenue-Unrestricted net assets Note Payable Pledges Receivable Reclassification-Temporarily restricted net assets Reclassification-Unrestricted net assets Salary Expense

Given P18-39: WATSON FOUNDATION Beginning balances: Cash Pledges receivable (net) Investments Land, buildings and equipment Unrestricted net assets Temporarily restricted net assets Portion to be used for new building Permanently restricted net assets Transactions occurring during the year: Interest computed on the pledge receivable Cash received on pledges Pledges written off as uncollectible Unrestricted cash gifts received Salaries paid Portion of salaries paid from restricted funds Cash gift received to be given to another organization Building purchased Long-term note signed for purchase Remainder paid for with restricted funds Membership dues collected Income generated by permanently restricted net assets Rent paid Advertising paid Utilities paid Unrestricted pledge received, to be collected in 5 years Present value of pledge Interest recognized Depreciation computed Interest paid on note signed to acquire building

100,000 200,000 300,000 200,000 400,000 100,000 50% 300,000

20,000 100,000 4,000 180,000 90,000 15,000 12,000 500,000 450,000 50,000 30,000 30,000 12,000 15,000 16,000 200,000 149,000 6,000 40,000 15,000