Impuestos diferidos e impuestos a la renta
Nota 07 Activos fijos
Hospital 20X1 Journal (Adjusting Entries)
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Questions
Q7.1. What is a contra asset account? Give two examples of such an account. Q7.2. Define depreciation as the term is used in accounting.
Q7.3. For plant assets, what is salvage value? How is the amount of salvage value determined for a particular asset?
Q7.4. How is the estimated useful life of a plant asset determined? Q7.5. Gordon Hospital purchased a new item of equipment for $15,000
on January 1, 20X1. This equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Compute the amount of straight-line depreciation for 20X1.
Q7.6. For depreciable plant assets, what is meant by the term “book value”? Q7.7. Is land a depreciable asset? Explain.
Q7.8. Gravity Hospital purchased a new item of equipment on January 1, 20X1. The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital’s December 31, 20X5, balance sheet reports $10,000 of accumulated depreciation on this equipment. What was the cost of the equipment when it was acquired on January 1, 20X1?
Q7.9. Gamma Hospital purchased a new item of equipment for $40,000 on May 1, 20X1. The equipment has an estimated useful life of ten years and an expected salvage value of $4,000. What amount should be reported as accumulated depreciation on this equipment in Gamma Hospital’s December 31, 20X2, balance sheet?
Q7.10. Hospitals do not always collect their full, established rates for services rendered. Explain why this situation exists.
Q7.11. Distinguish among contractual adjustments, charity care adjustments, and bad debt expense.
Q7.12. At what amount should patients’ accounts receivable be valued in a hospital’s balance sheet?
Exercises
E7.1. Garry Hospital provides $1,600 of routine services and $1,400 of ancillary services to a patient under a third-party contract that provides for 85 percent reimbursement to the hospital. The remain- ing 15 percent is not billable to the patient.
Required: Make general journal entries to record (1) the services
rendered to the patient and (2) the collection of the patient’s account.
E7.2. Great Hospital has $100,000 of accounts receivable at December 31, 20X1. It is estimated that 9 percent of these accounts will eventually
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prove to be bad debts and, therefore, uncollectible. During 20X2, $8,300 of the 20X1 accounts receivable are written off as bad debts.
Required: Make general journal entries to record (1) the estimated
bad debts at December 31, 20X1, and (2) the write-off of bad accounts during 20X2.
E7.3. Goodcare Hospital has $100,000 of accounts receivable at
December 31, 20X1. It is estimated that 7 percent of these accounts will be uncollectible by reason of charity care, 10 percent will not be collectible because of contractual adjustments, and 4 percent will prove to be bad debts.
Required: (1) Make the necessary adjusting entries at December 31,
20X1, and (2) indicate how the receivables should be reported in the hospital’s balance sheet for December 31, 20X1.
E7.4. Gracious Hospital purchased the following plant assets on January 1, 20X1:
Estimated
Cost Salvage Value Useful Life (Years)
Land $ 100,000
Buildings 8,000,000 $1,600,000 40
Equipment 4,500,000 500,000 20
Required: (1) Assuming straight-line depreciation, what is the
depreciation expense for 20X4? (2) At what amount, net of accumulated depreciation, would these assets be presented in the balance sheet of the hospital at December 31, 20X6?
E7.5. Golly Hospital purchased equipment with the following costs: Estimated
Purchase Date Cost Useful Life (Years)
1/1/X1 $ 100,000 8
4/1/X1 200,000 10
7/1/X1 300,000 6
Required: All equipment has a 20 percent salvage value. What is
depreciation expense for 20X1?
Problems
P7.1. Goodness Hospital’s general ledger contains the following unadjusted account balances, among others, at December 31, 20X1:
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Acct. No.
104 Accounts receivable $ 850,000
105 Allowance for uncollectible accounts -0-
120 Land 25,000 130 Buildings 3,000,000 131 Accumulated depreciation—buildings -0- 140 Equipment 1,800,000 141 Accumulated depreciation—equipment -0- 501 Contractual adjustments -0-
502 Charity care adjustments -0-
607 Depreciation expense -0-
609 Bad debt expense -0-
The following additional information is available:
1. Of the December 31, 20X1, accounts receivable, it is estimated that 15 percent will prove to be uncollectible due to these factors:
Contractual adjustments, 6% Charity care adjustments, 4% Bad debt expense, 5%
2. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and an expected salvage value of $200,000.
3. Equipment, which cost $1,500,000, was acquired on January 1, 20X1. Additional equipment was acquired on July 1, 20X1, for $300,000. All equipment has a 20 percent salvage value and an estimated useful life of ten years.
Required: Prepare, in general journal form, all necessary adjusting
entries at December 31, 20X1.
P7.2. Certain of the accounts in Gateway Hospital’s preadjusted trial balance at December 31, 20X6, are as follows:
Acct. No.
102 Temporary investments $ 60,000
103 Accrued interest receivable -0-
104 Accounts receivable 940,000
105 Allowance for uncollectible accounts 3,000
107 Prepaid insurance 1,800
120 Land 50,000
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131 Accumulated depreciation—buildings 450,000
140 Equipment 1,900,000
141 Accumulated depreciation—equipment 750,000
203 Accrued interest payable -0-
205 Deferred rental income 3,000
250 Bonds payable 100,000
403 Interest income 2,875
404 Rental income 1,780
501 Contractual adjustments 71,300
502 Charity care adjustments 56,290
604 Insurance expense 11,450
607 Depreciation expense -0-
608 Interest expense 9,230
609 Bad debt expense -0-
The following additional information is available:
1. The hospital’s temporary investments consist of $60,000 (face value) of 8 percent bonds that were acquired on October 1, 20X7. These bonds pay interest annually on October 1, commencing October 1, 20X7.
2. Account 105 is used only for estimated bad debts; charity care adjustments and contractual adjustments are charged directly to accounts 502 and 501, respectively. The $3,000 credit balance in account 105 here represents the excess of estimated bad debts at December 31, 20X5, over the actual bad debts written off during 20X6. It is estimated that all of the December 31, 20X6, accounts receivable are collectible except for 5 percent that probably will prove to be bad debts.
3. Account 107 includes a three-year insurance premium paid in advance on June 1, 20X6.
4. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and an expected 10 per- cent salvage value.
5. All the equipment was acquired on January 1, 20X1. It has an estimated useful life of 12 years and a $100,000 salvage value. 6. Account 202 represents the face amount of a 12 percent, six-
month bank loan obtained by the hospital on November 1, 20X6. Interest on the note was not prepaid.
7. Account 205 represents a year’s rent received in advance on March 1, 20X6.
Required: Prepare, in general journal form, the necessary adjusting
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P7.3. Gaterburg Hospital’s general ledger contains the following unad- justed account balances, among others, for December 31, 20X5:
Acct. No.
104 Accounts receivable $120,000
105 Allowance for uncollectible accounts -0-
120 Land 15,000 130 Buildings 900,000 131 Accumulated depreciation—buildings 80,000 140 Equipment 450,000 141 Accumulated depreciation—equipment 120,000 501 Contractual adjustments -0-
502 Charity care adjustments -0-
607 Depreciation expense -0-
609 Bad debt expense -0-
The following additional information is available:
1. Of the December 31, 20X5, accounts receivable, it is estimated that 17 percent will prove to be uncollectible due to the following: a. Contractual adjustments, 7 percent
b. Charity care adjustments, 6 percent c. Bad debt expense, 4 percent
2. The hospital building was acquired on January 1, 20X1. It has an estimated useful life of 40 years and an estimated salvage value of $100,000.
3. On January 1, 20X1, the hospital acquired $400,000 of equip- ment having an estimated useful life of 12 years and an estimated salvage value of 10 percent. Additional equipment, costing $50,000 and acquired on May 1, 20X5, has an estimated useful life of eight years and an estimated salvage value of $2,000.
Required: (1) Prepare, in general journal form, the necessary adjusting
entries at December 31, 20X5. (2) Indicate the manner in which receivables should be presented in the hospital’s December 31, 20X5, balance sheet. (3) Indicate the presentation of plant assets in the hospital’s December 31, 20X5, balance sheet.
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