Description
Collegiate Community Hospital is a not for profit hospital.
Below is a list of possible effects for each transaction and the possible effect on revenue:
- Patient service revenue
- Contractual adjustments
- Other revenue (exchange)
- Other revenue (nonexchange)
- No revenue
For the following transactions or events, match the letter above to illustrate the possible effects the transaction would have on revenue. Then provide detailed rationale for the matches.
- The hospital provided medical care valued at $96,000 for homeless citizens.
- The hospital received a $15,000 federal grant to provide immunizations to children.
- A pharmaceutical firm donated recently approved drugs valued at $19,000. The hospital uses a similar type drug in its operations.
- Received $10 co-pay from a patient for an outpatient visit. Billed $800 to insurance.
- Geezer Health Insurance paid $625 as final payment on the $800 billed in the previous transaction.
- Gift shop sales amounted to $3,200.
- A local civic group provided labor to manage the hospital's information desk. The labor was valued at $24,000.
- Patient accounts of $1,800 were written off.
- The hospital received $900 for CPR training provided to the city police department.
- A grateful patient donated $1,000 for unrestricted use by the hospital.
Required:
- Submit your responses to the Problem #1 items in a 3-5-page Microsoft Word document.
- Ensure your responses are well-written.
- Be sure to follow the formatting guidelines outlined in the CSU Global Writing Center (Links to an external site.) .
- Include at least two scholarly references and IN TEXT CITATIONS. The CSU Global Library (Links to an external site.) is a good place to find these references.
Explanation & Answer
Here you go. In case of any further inputs please let me know!It was good working with you! 👋 Thanks for using Studypool. Take care and good luck!All the best.
Running head: NONPROFIT ACCOUNTS FOR COLLEGIATE HOSPITAL
Nonprofit Accounts for Collegiate Hospital
Name
Course
Tutor
Date
1
NONPROFIT ACCOUNTS FOR COLLEGIATE HOSPITAL
2
Nonprofit Accounts for Collegiate Hospital
The first transaction is a patient service revenue. The organization receives payment for services
rendered to the hornless patients amounting to about $ 96,000. The financial treatment of the
above figure has a two-fold side at any given point in time. It will affect the profit and loss side
and report of the community hospital. The treatment would be to credit revenue account and
check for any balance and debit accounts receivables.
The second transaction relates to the receipt of federal grants by the hospital amounting to $
15,000. From the non-profit hospital financial standards, assignments are classified as other
revenues(exchange). The discussion here looks at the fact that the entity receives assets and, in
return, gives an equivalent to the other entity in the form of services and goods, for that matter.
The treatment for the above transaction looks at the fact that it is a balance sheet item. It comes
and goes to the fund account.
The third transaction also ex...