Revenue and Related Transactions. During its current fiscal year,
Revenue and Related Transactions. During its current fiscal year, Evanston General Hospital, anot-for-profit health care organization, had the following revenue-related transactions (amountssummarized for the year).1. Services provided to inpatients and outpatients amounted to $9,600,000, of which$450,000 was for charity care, $928,000 was paid by uninsured patients, and $8,222,000was billed to Medicare, Medicaid, and insurance companies.2. Donated pharmaceuticals and medical supplies valued at $265,000 were received andutilized as general expenses.3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid$5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).4. An unconditional contribution of $5,000,000 was received in cash from a donor toconstruct a new facility for care of Alzheimers patients. The full amount is expendable forthat purpose. No activity occurred on this project during the current year.5. A total of $965,000 was received from the following activities/sources: cafeteria and giftshop sales, $710,000; medical seminars, 125,000; unrestricted transfers from theEvanston General Hospital Foundation, $75,000; and fees for medical transcripts,$55,000.6. Uncollectible accounts totaling ,250 were written off. The allowance for uncollectiblereceivables was increased by $1,170.Requireda. Record the preceding transactions in general journal form.b. Prepare the unrestricted revenues, gains, and other support section of Evanston GeneralHospital’s statement of operations for the current year, following the format in Illustration16-4.Illustration 16-4:
