Análisis de los Resultados de la Operación

20X3 Journal (September 30 Adjusting Entries)

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Questions

Q9.1. What are interim financial statements?

Q9.2. Why are interim financial statements prepared?

Q9.3. Hart Hospital’s long-term investments consist of $90,000 of 8 percent, 15-year bonds purchased by the hospital at face value on January 1, 20X1. These bonds pay interest semiannually on January 1 and July 1. Hart Hospital’s accounting period is the calendar year. What amounts should be reported in the hospital’s adjusted trial balance at November 30, 20X1, for interest income and accrued interest receivable?

Q9.4. Hello Hospital, whose accounting period is the calendar year, began 20X1 with a $10,000 credit balance in its allowance for uncollectible accounts. At the end of each month of the year, an adjusting entry is made to adjust the allowance account credit balance to 10 percent of receivables. Also at the end of each month of the year, an entry is made to write off accounts receivable deemed to be uncollectible.

Indicate the presentation of receivables in Hello Hospital’s balance sheet at March 31, 20X1, given the following data:

January February March Receivables—

patient services at end of month $128,000 $151,000 $147,000 Accounts written off at end of month 8,000 11,000 15,000 Q9.5. On January 1, 20X1, Hope Hospital paid a three-year insurance

premium of $6,480 in advance. This premium payment was recorded as a debit to prepaid insurance. What amount should be reported as prepaid insurance in the hospital’s preadjusted trial balance at August 31, 20X1? What amount should be reported as insurance expense in the hospital’s statement of operations for the nine months ended September 30, 20X1? What amount should be reported as prepaid insurance in the hospital’s balance sheet at October 31, 20X1?

Q9.6. Happy Hospital paid $145,700 of salaries and wages during the month of May 20X1. The hospital’s balance sheets reported accrued salaries and wages as follows:

April 30, 20X1 $31,200

May 31, 20X1 37,800

What amount should be reported as salaries and wages expense in the hospital’s statement of operations for the month ended May 31, 20X1?

Q9.7. If a hospital prepares interim financial statements, how often must adjusting entries be made? How often must closing entries be made?

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Q9.8. A private enterprise began operating a gift shop in Hope Hospital on May 1, 20X1. At that time, the hospital received a year’s rent ($3,000) in advance. The $3,000 was credited to deferred rental income. Assuming that the hospital prepares monthly statements, make the necessary adjusting entry at September 30, 20X1.

Q9.9. Hillside Hospital issued $300,000 of 6 percent, 15-year bonds at face value on April 1, 20X1. These bonds pay interest semiannually on April 1 and October 1, commencing October 1, 20X1. The hospital’s fiscal year ends December 31. What amounts should be reported in the hospital’s adjusted trial balance at November 30, 20X1, for bond interest expense and accrued bond interest payable?

Q9.10. Harmless Hospital purchased all its depreciable equipment on January 1, 20X1, for $800,000. This equipment has an estimated useful life of 12 years and an estimated salvage value of 10 percent.

The hospital’s fiscal year ends on December 31. What amounts should be reported in the hospital’s preadjusted trial balance at May 31, 20X3, for depreciation expense and accumulated depreciation?

Exercises

E9.1. Hype Hospital provides you with the following information:

10/31/X1 11/30/X1 Prepaid rent expense $1,000 $2,000 Accrued rent receivable 3,000 4,000 Deferred rental income 5,000 6,000

Accrued rent payable 7,000 8,000

During November, $40,000 of rent was paid and $50,000 of rent was received in cash.

Required: What should the November 20X1 statement of operations report as rent expense and rental income?

E9.2. Hipp Hospital provides you with the following information:

10/31/X2 11/30/X2 Accrued interest receivable $4,100 $3,900

Prepaid interest 6,400 5,700

Accrued interest payable 3,200 3,600 Deferred interest income 4,800 5,300 The hospital’s November statement of operations reports $25,000 of interest income and $30,000 of interest expense.

Required: (1) What was the amount of interest received in cash

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during November? (2) What was the amount of interest paid in cash during November?

E9.3. Helping Hospital provides you with the following accounts drawn from its adjusted general ledger at October 31, 20X1:

Allowance for

Accounts Uncollectible

Receivable Accounts

240,000 450,000 9,500 24,000

500,000 9,500 13,550

The hospital’s fiscal year ends September 30. Uncollectible accounts are estimated at 10 percent of accounts receivable.

Required: Identify each of the dollar amounts in each of these ledger accounts.

E9.4. Highest Hospital provides you with the following accounts drawn from its adjusted general ledger at October 31, 20X1:

Inventory Accounts Payable 55,000 100,000 110,000 60,000

95,000 95,000

The hospital’s fiscal year ends September 30.

Required: Identify each of the dollar amounts in each of these ledger accounts.

Problems

P9.1. Hohum Hospital’s adjusted trial balance at March 31, 20X6, and its unadjusted trial balance at April 30, 20X6, are shown here:

Adjusted Unadjusted Trial Balance Trial Balance March 31, 20X6 April 30, 20X6 Acct.

No. Dr. Cr. Dr. Cr.

101 Cash $30,300 $25,400

103 Accrued interest

receivable 1,800 1,800

104 Accounts receivable 80,000 86,000 105 Allowance for

uncollectible accounts $ 8,000 $ 1,400

106 Inventory 11,000 10,300

107 Prepaid insurance 3,675 3,675

110 Long-term investments 90,000 90,000

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120 Land 15,000 15,000

130 Buildings 400,000 400,000

131 Accumulated

depreciation—buildings 63,000 63,000

201 Accounts payable 21,600 23,900

203 Accrued interest payable 2,400 2,400

204 Accrued salaries and

wages payable 4,700

-0-205 Deferred rental income 2,340 2,340

250 Bonds payable 160,000 160,000

301 Hospital net assets 355,235 355,235

302 Revenue and expense

summary -0-

-0-401 Routine services revenue 81,400 115,200 402 Ancillary services revenue 56,100 72,900

403 Interest income 1,800 1,800

404 Rental income 780 780

406 Other operating revenues 12,120 16,020 501 Contractual adjustments 11,500 14,900 601 Salaries and wages

expense 90,600 120,300

602 Supplies expense 15,100 21,700 603 Utilities expense 10,200 14,500

604 Insurance expense 525 525

607 Depreciation expense 3,000 3,000

608 Interest expense 2,400 2,400

609 Bad debt expense 3,300 3,300

610 Other expenses 1,075 2,175

Totals $769,475 $769,475 $814,975 $814,975 The hospital’s fiscal year ends December 31. Additional information

is available as follows:

1. Long-term investments consist of $90,000 (face value) of 8 percent, ten-year bonds purchased by the hospital on January 1, 20X6.

The bonds pay interest semiannually on January 1 and July 1, commencing July 1, 20X6.

2. A two-year insurance premium of $4,200 was paid in advance on January 1, 20X1.

3. Depreciable plant assets, all of which were acquired on January 1, 20X1, have an estimated useful life of 30 years and a 10 percent salvage value.

4. On January 1, 20X6, the hospital issued $160,000 of 6 percent, 15-year bonds at face value. These bonds pay interest annually on January 1, commencing January 1, 20X7.