CHAPTER 22 Multiple Choice 22-1:
b.
22-2:
d.
(P500,000 – P300,000)
The total tuition fees for educational and general purposes. 22-3:
d. (P1,240,000 – P160,000)
22-4:
a.
nrestricted nrestricted cash contri!ution recei"ed fro# donors are to !e reported as increase in net cash pro"ided !$ operation. operation. 22-5:
d.
The re#aining contri!ution of P5,000 on %ece#!er 31, 2004. 22-6:
b.
nregistered nregistered pledges fro# donors are treated as re"enues at the ti#e of the pledge. 22-7:
d.
Patient re"enues &ursing ser"ices ser"ices Professional ser"ices Total re"enues 'ess taff discounts *llo+ances Third part$ pa$ors Net revenues
P 5,000,000 5,000,00 0 1,000,000 500,000 P 6,500,000 P50,000 230,000 00,000
1,00,000 P 5,420,000
-ad de!ts are treated in the usual #anner as epense. 22-:
a.
*s of /ul$ 31, 2004, all of the funds are properl$ includi!le in the Plan unds, for a total of P00,000. 22-!:
c. (P00,000 – P110,000)
22-1":
d.
Patient re"enues (net of charit$ care) 'ess contractual adust#ents Net patient service revenues 22-11:
P 600,000 200,000 P 400,000
c.
150
22-12:
c.
The contri!uted ser"ices are de!ited to alar$ pense account and credited to ontri!ution e"enue account. 22-13:
c.
The net effect on unrestricted net assets of spending P10,000 on research is ero. 22-14:
b. (P5,000,000 7 P50,000)
The P1,000,000 contri!ution fro# the donor, +ho stipulated that the contri!ution !e in"ested 8ndefinitel$, should !e reported as per#anentl$ restricted re"enue. 22-15:
c.
22-16:
b.
-oth are treated as a financing acti"it$ on the state#ent of cash flo+s. 22-17:
a.
ash flo+s fro# operating acti"ities +ould include !oth the cash recei"ed fro# patient ser"ice e"enue of P300,000 and the cash recei"ed fro# gift shop sales of P25,000. 22-1:
b.
ash recei"ed fro# patient re"enue (collection of recei"a!les) and fro# tuition re"enue are !oth included in the a#ount reported for cash flo+s fro# operating acti"ities. The other cash receipts +ould !e reported as increases in cash flo+s pro"ided !$ financing acti"ities. 22-1!:
b.
pirations of donor restrictions on te#poraril$ restricted net assets should !e reported on the tate#ent of operations as net assets released fro# restrictions. 22-2":
c.
urrent funds re"enues include (1) all unrestricted gifts and other unrestricted resources earned during the reporting period, and (2) restricted current funds to the etent that such funds +ere epended for current operating purpose. Therefore, the a#ount that should !e included in current funds re"enue is nrestricted gifts recei"ed pended &ot epended estricted gifts recei"ed pended Total
P600,000 95,000 100,000 P775,000
151
P#oble$% P#oble$ 22-1
1.
2.
Pledges recei"a!le *llo+ance for uncollecti!le pledges ontri!ution re"enue
300,000
ash
260,000
10,000 290,000
Pledges recei"a!le 3.
4.
5.
260,000
ash und raising epense und raising re"enue
40,000 5,000
8n"est#ent ash
35,000
ash
45,000
35,000 5,000
ales – pu!lic re"enue 6.
9.
alaries #plo$ee fringe !enefits Pa$roll taes upplies Telephone tilities ent onference, con"entions and #eetings ost of sales to pu!lic :iscellaneous ash tilities alaries
5,000 0,000 15,000 16,000 9,000 1,500 6,000 10,000 5,000 1,000 3,000 154,500 1,000 5,000
*ccounts pa$a!le or accrued epense pa$a!le .
und -alance ; nrestricted und !alance – estricted to purchases of ne+ e
6,000 10,000 10,000
152
P#oble$ 22-2
(1)
(2)
(3)
*ccounts recei"a!le Patient ser"ice re"enues To record gross patient ser"ice re"enue for the #onth at full rates.
0,000 0,000
*ccounts recei"a!le Patient ser"ice re"enues To record recei"a!le fro# ocial :edicare.
2,500
ontractual adust#ents *ccounts recei"a!le To record contractual adust#ents allo+ed.
6,000
%ou!tful accounts *llo+ance for dou!tful accounts To pro"ide allo+ances for dou!tful accounts.
,000
alaries epense ontri!ution re"enues To record donated ser"ices (10,000 – 200).
,00
Pledges recei"a!le ontri!ution re"enues To record pledges recei"ed fro# donors.
5,000
ash
3,500
2,500
6,000
,000
,00
5,000
Pledges recei"a!le To record pledges collected. Pro"isions for dou!tful pledges *llo+ance for dou!tful pledges To pro"ide dou!tful pledges. (4)
ash
3,500
00 00
3,000
und !alance To record receipt of cash fro# restricted fund. Plant assets ash To record ac
3,000
3,000 3,000
153
P#oble$ 22-3 Plant Fund Ledger Account:
(1)
50,000
und -alance To record ac
-uildings
50,000
2,000,000
ash :ortgage notes pa$a!le To record construction of ne+ !uilding financed in part !$ 5= #ortgage note pa$a!le.
250,000 1,950,000
Quasi-ndo!"ent Fund Ledger Account:
(3)
ash
110,000
8n"est#ents Pa$a!le to nrestricted fund To record sale of in"est#ents at a gain, the use of +hich is unrestricted.
100,000 10,000
#nrestricted Fund Ledger Account:
(1)
(2)
ndesignated fund !alance ash To record ac
50,000 50,000
2,000,000
ontri!ution re"enues To record receipt of unrestricted gift. (3)
ecei"a!le fro#
2,000,000
10,000 10,000
154
P#oble$ 22-4 Nonpro$it Trade Association %tate"ent o$ Activities &ear nded 'une (0, 2004
e"enues and >ains :e#!ership dues onferences and #eetings Pu!lications and ad"ertising sales pecial assess#ents 8n"est#ent inco#e, including net gains Total penses :e#!er ser"ices onferences and #eetings Technical ser"ices o##unications >eneral ad#inistration :e#!ership de"elop#ent 8ncrease in unrestricted net assets &et assets, !eginning of $ear &et assets, end of $ear
P14,000 321,000 143,000 50,000 11,000 P90,000 P 56,000 166,000 21,000 61,000 154,000 29,000
62,000 29,000 25,000 P312,000
Nonpro$it Trade Association %tate"ent o$ Financial Position 'une (0, 2004
ASSETS urrent assets ash P 9,000 hort;ter# in"est#ents *ccounts recei"a!le (net) Pu!lications in"entor$ Total current assets 'ong;ter# in"est#ents Plant assets (net) ?ther assets Total assets
219,000 25,000 61,000 310,000 120,000 33,000 2,000 P41,000
LIABILITIES AND NET ASSETS urrent lia!ilities *ccounts pa$a!le and accrued lia!ilities %eferred #e#!ership dues Total current lia!ilities &et assets (unrestricted) Total lia!ilities and net assets
P 4,000 131,000 19,000 312,000 P41,000
155
P#oble$ 22-5 )*ildren Association %tate"ent o$ Activities &ear nded +ece"er (, 2004
Changes in unrestricted net assets: e"enues and gains ontri!utions :e#!ership dues Progra# ser"ice fees 8n"est#ent inco#e Total unrestricted re"enues and gains penses Progra#s :anage#ent and general epenses und raising 8ncrease in unrestricted net assets Changes in temporarily restricted net assets: ontri!utions penses :anage#ent and general epenses und raising epenses 8ncrease in te#poraril$ restricted net assets 8ncrease in net assets &et assets, !eginning of $ear (P12,000 7 P26,000 7 P3,000) &et assets, end of $ear
P320,000 25,000 30,000 10,000 P35,000 P290,000 49,000 ,000
325,000 P 60,000 P 15,000
P 4,000 1,000
5,000 P 10,000 P 90,000 41,000 P111,000
)*ildren Association %tate"ent o$ Financial Position +ece"er (, 2004
ASSETS ash (P40,000 7 P,000) -e
P 40,000 6,000 ,000 100,000 P164,000
P 51,000 2,000 P 53,000
P ,000 13,000 P111,000 P164,000
156
P#oble$ 22-6
%an Pedro .ospital %tate"ent o$ Financial Position 'une (0, 2004 A&&ET& Current assets ash *ccounts recei"a!le (net of allo+ance of P5,000) 8n"entories Prepaid epenses Total current assets Investments Property plant and e!uipment (net of accu#ulated depreciation of P140,000) Total assets '(A)('(T(E& A*+ *ET A&&ET& '(A)('(T(E& Current lia"ilities: *ccounts pa$a!le *ccrued epenses %eferred re"enues urrent portion of long;ter# de!t Total current lia!ilities #ortgage paya"le Total lia!ilities *ET A&&ET& $nrestricted Temporarily restricted Permanently restricted Total net assets Total lia!ilities and net assets
P 222,000 20,000 50,000 10,000 P 302,000 660,000 160,000 P1,122,000
P
45,000 19,000 11,000 24,000 P 9,000 125,000 P 222,000 P 14,000 232,000 520,000 P 00,000 P1,122,000
159
