The post-closing trial balance for Blakely Hospital as of January 1, 2016, is as follows:
Debit Credit
Cash 79,800
Patient Accounts Receivable 37,000
Allowance for Adjustments and Provision for Uncollectibles 7,000
Inventory of Supplies 14,000
Long-Term Investments 146,200
Property, Plant, and Equipment 2,830,000
Accumulated Depreciation 564,000
Endowment Investments 260,000
Vouchers Payable 16,000
Accrued Expenses 6,000
Mortgage Bonds Payable 150,000
Unrestricted Net Assets 1,158,000
Temporarily Restricted Net Assets 1,250,000
Permanently Restricted Net Assets 216,000
3,367,000 3,367,000
c. The hospital paid P18,000 to retire mortgage bonds payable with an equivalent book value.
d. During the year, Blakely Hospital received general contributions of P50,000 and income of P6,500
from endowment investments. Income received on endowment investments is unrestricted.
f. P26,000 of donor specified contributions were used to acquire new equipment. The hospital policy
is to release donor restrictions when asset is placed in service.
g. A sterilizer that originally cost P24,000 and had a book value of P2,400 was sold for P3,500.
l. During the year, P12,000 of cash income on temporarily restricted investments was received. On
December 31, 2016, there was P800 of accrued interest income on these investments. Earnings are
restricted to plant and expansion.
n. On December 31, 2016, an accrual of P6,100 was made for interest on mortgage bonds payable.
Interest is considered an Administrative Services Expense.
o. A grateful patient contributed P100,000 in cash. Earnings must accumulate during the patient's
lifetime. Upon death, the principal and accumulated earnings are to be used for plant expansion.
Required:
WRITE YOUR ANSWERS IN A SHEET/S OF SHORT BOND PAPER USING LONG HAND. ANSWER
IT ON YOUR OWN REGARDLESS WHETHER YOU HAVE A SOLUTION MANUAL, OTHERWISE
EXPECT FOR BITTER CONSEQUENCES. THANK YOU. ENJOY LEARNING.
1. Assuming that fund accounting is used, record the events. Identify the appropriate fund for each
transaction.
2. Prepare the closing entries.
3. Prepare the adjusted trial balance.
4. Prepare all relevant financial statements.
5. Prepare the post-closing trial balance.
CHART OF ACCOUNTS
Cash
Cash--limited to Plant Replacement and Expansion
Patient Accounts Receivable
Allowance for Adjustments and Uncollectibles
Accrued Interest Income
Inventory of Supplies
Property, Plant, and Equipment
Accumulated Depreciation
Vouchers Payable
Interest Payable
Mortgage Bonds Payable