How much should lennon record as net patient service revenue

Assignment Help Financial Accounting

Reference no: EM131259522

Under Lennon Hospital’s rate structure, it earned patient service revenue of $10.3 million for the year ended December 31, 2015. However, Lennon did not expect to collect this entire amount because it deemed $2.05 million to be charity care and estimated contractual adjustments to be $930,000.

During 2015. Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $5,300. Harrison notified Lennon that it was donating the supplies to the hospital.

Lennon is a private not-for-profit entity:

a. How much should Lennon record as patient service revenue? (Enter your answer in millions rounded to 2 decimal place.)

b. How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 2 decimal place.)

c. How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.)

Reference no: EM131259522

Questions Cloud

Were the bonds issued at a premium or a discount : On January 1, 2016 Viking Corporation issued $400,000 of 10-year 6% semiannual bonds. The market rate at the time of the issuance was 8%. Were the bonds issued at a premium or a discount? How do you know? Suppose Viking received $345,644 for the bond..

Prepare contribution margin income statement : Belmont Company currently produces and sells 7,000 units annually of a product that has a variable cost of $19 per unit and annual fixed costs of $175,000. The company currently earns a $84,000 annual profit. Use the equation method to determine the ..

Performing international financial analysis : Present and discuss some of the key accounting issues and concerns that are inherent when performing international financial analysis. Also discuss global industry and ratio analysis, and the significance of this to your international portfolio secur..

Use accounting more in your personal or professional life : How do you see yourself using these financial topics and concepts after graduating from Harrison? Are you interested in becoming a CPA, investing in stocks, or managing a company’s accounts, for example? Will you use accounting more in your personal ..

How much should lennon record as net patient service revenue : Under Lennon Hospital’s rate structure, it earned patient service revenue of $10.3 million for the year ended December 31, 2015. How much should Lennon record as patient service revenue? How should Lennon record the donation of the supplies? How much..

Purchase of the stock and the receipt of the dividends : Please complete the following journal entries for the information listed directly below…Grantham Corporation purchases 10% (300 shares) at $20 per share of stock in Douglas Corporation on January 1, 2015. Dividends are issued at $5 per share annually..

The total principle of the interest payment : Grantham Landscaping, LLC has a mortgage payment of $1,200 monthly. The total principle of the interest payment is $200,000. The interest rate of the loan is fixed at 4.5%. Please record the journal entry for the first month’s payment of the mortgage..

Reconcile variable costing-absorption net operating incomes : The Maxwell Corporation manufacturers and sells a single product. Determine the unit product cost under: (a) Absorption Costing (b) Variable costing. Reconcile the variable costing and absorption net operating incomes. Reconcile the variable costin..

Highest quality rating in the department : Dave has the highest quality rating in the department but he is also the slowest worker. Because Dave is paid? hourly, his labor cost per unit is also the highest in the department. We could say that Dave is? ____________.

User Account

All Pages