St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,000 Is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and government health care agencles. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $118,000 Is collected from the patients during the year and $1,300 of price adjustments are granted to Individuals. b. Actual contractual adjustments total $306.000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) Vlew transaction lst Journal entry worksheet 3 4 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary
rates) for the month. Of this, $138,.000 is billed to patlents, representing their Insurance deductibles and copayments. The balance is
billed to third-party payors, Including Insurance companles and govemment health care agencies. St. Joseph's estimates that 20
percent of these third-party payor charges wll be deducted by contractual adjustment. The hospital's fiscal year ends on December 31.
Required:
1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit
price adjustments.
2 Prepare the Journal entries for 2020 assuming the following:
a. $18.000 is collected from the patients during the year and $1,300 of price adjustments are granted to individuals.
b. Actual contractual adjustments total $306,000. The remalning recelvable from third-party payors Is collected.
(If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Vlew transaction llat
Journal entry worksheet
3
4
5
6
Record the provision for uncollectible accounts for 2019.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
10
Record entry
Clear entry
Vlew general Journal
Transcribed Image Text:St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,.000 is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and govemment health care agencies. St. Joseph's estimates that 20 percent of these third-party payor charges wll be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $18.000 is collected from the patients during the year and $1,300 of price adjustments are granted to individuals. b. Actual contractual adjustments total $306,000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Vlew transaction llat Journal entry worksheet 3 4 5 6 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit 10 Record entry Clear entry Vlew general Journal
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Employee Compensations and Benefits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education