Exam 18: Accounting and Reporting for Private Not-For-Profit Organizations

Which of the following is not a question individuals ask of not-for-profit organizations in considering whether to make a contribution?

For the month of December 2013, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. In this month, there were several patients that had no health insurance and due to their low income level, the hospital decided that $85,000 of receivables would not be collectible. Required: Prepare the necessary journal entry to reflect the decision to consider the $85,000 as charity care.

Which entry would be the correct entry on the donor's books when the donor retains control of an asset that it contributes to a not-for-profit organization?

In accruing patient charges for the current month, which one of the following accounts should a hospital credit?

The following gifts are received in Year One by a not-for-profit organization: I. $2,000 specified by the donor to be used to pay salaries. II. $10,000 for new conference room furniture. III. $5,000 to be held for one year before being expended. The salaries are paid in Year Two and the conference room furniture is purchased in Year One. How much should be shown as increases as Temporarily Restricted Net Assets in Year One?

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

Which of the following types of health care organizations recognize depreciation expense?

Which one of the following is a voluntary health and welfare organization?

For the month of December 2013, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000. Required: Prepare the necessary journal entry to record the contractual adjustments.

Which entry would be the correct entry to record that a not-for-profit organization collected $80,000 of the amounts pledged and wrote off $3,000 of the amounts pledged as amounts uncollectible?

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retained by the donor?

When an acquisition occurs in not-for-profit accounting, recognition of goodwill depends on:

A local social worker, earning $12 per hour working for the state government, contributed 600 hours of time at no charge to the Yelton Center, a voluntary health and welfare organization. If not for these donated services, an additional staff person would have been hired by the organization. Required: How should the Yelton Center record the contributed services?

A not-for-profit organization provides the following information for the year: Required: Prepare the journal entries for these transactions.

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. The home has an endowment and the income may be used to sponsor families that are unable to pay for services but the principal must be preserved. In addition, various fundraising activities take place during the year. When the Home held its annual Holiday fund raiser, pledges of $50,000 were received. The administration expected 5% to be uncollectible. In addition, income of $10,000 was received from the endowment to sponsor families. Prepare the journal entries for these transactions.

A not-for-profit organization receives a computer as a donation (valued at $2,000). Prepare the journal entry for the transaction.

What are third party payors? Why are their interests important in accounting for health care entities?

What is the appropriate account to credit when estimating a portion of health care organization receivables that will prove to be uncollectible?

What is the main source of financial support for most voluntary health and welfare organizations?

For May 2013, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.