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Prepare a schedule calculating the change in unrestricted, permanently restricted and temporarily restricted net assets.

Accounting and Reporting for Private not-for-profit
organizations
A local private not-for-profit health care entity incurred the
following transactions during the current year. Record
each of these transactions in appropriate journal entry
form. Prepare a schedule calculating the change in
unrestricted, permanently restricted and temporarily restricted net
assets.
see attached for transactions on the “given” tab and also a
template

Given P18-37:

 

 

Local Private Not-for-profit Health Care
Entity:

a.

Announced equipment acquisition plan; invested funds

$ 160,000

b.

Received donation for nursing salary supplements

$ 80,000

c.

Expended restricted funds received previous year for
medicines

$ 25,000

d.

Charged patients

$ 600,000

Portion to be paid by third-party payors

80%

e.

Recorded depreciation expense

$ 38,000

f.

Received interest income on investments from (a.)

$ 15,000

g.

Estimated as uncollectible accounts

$ 20,000

Contractual adjustments expected by third-party payors

$ 30,000

h.

Medications from (c.) were consumed

$ 25,000

i.

Investments from (a.) were sold

$ 172,000

Previously donated cash stipulated to be used for plant
assets

$ 25,000

Equipment purchased

$ 197,000

j.

Unrestricted pledges received

$ 126,000

Pledges paid immediately

10%

Pledges estimated as uncollectible

$
9,000

Present value of the receivable

$ 98,000