Reference no: EM132540199

Question - During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).

Services provided to inpatients and outpatients amounted to $9,684,000, of which $457,000 was for charity care; $935,000 was paid by uninsured patients; and $8,292,000 was billed to Medicare, Medicaid, and insurance companies.

Donated pharmaceuticals and medical supplies valued at $272,000 were received and utilized as general expenses.

Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,372,000 of the $8,292,000 billed by the hospital during the year (see transaction 1).

An unconditional contribution of $5,070,000 was received in cash from a donor to construct a new facility for care of Alzheimer's patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.

A total of $1,056,000 was received from the following activities/sources: cafeteria and gift shop sales, $780,000; medical seminars, $132,000; unrestricted transfers from the Evanston General Hospital Foundation, $82,000; and fees for medical transcripts, $62,000.

Uncollectible accounts totaling $3,950 were written off. The allowance for uncollectible receivables was increased by $4,670.

Required -

1. Prepare journal entries for the preceding transactions.

2. Prepare the revenues, gains, and other support without donor restrictions section of Evanston General Hospital's statement of operations for the current year.