Georgetown Hospital,a Governmental Hospital,recorded During Its Fiscal Year Ended September

question 40

Essay

Georgetown Hospital,a governmental hospital,recorded during its fiscal year ended September 30,gross patient services valued at $15,000,000,excluding charity care services of $1,600,000.However,contractual adjustments by third-party payors amounted to $1,200,000.In May of that year it received donated medical supplies worth $2,000; supplies it had planned to purchase had it not been for the gift.At year-end,the governing board set aside investments in the amount of $500,000 for future plant expansion and $250,000 to be invested with the related earnings used for a special prenatal care program.
1.In its operating statement for the year ended September 30,how much Georgetown should report as net patient services revenue? Justify your answer.
2.For the year ended September 30,how should the donation of medical supplies be reported?3.What amount of unrestricted net position should Georgetown report in its balance sheet as board designated,assuming it had no board designated net position at the beginning of the year?

Understand the different kinds of leases and the depreciation of improvements tied to leased assets.

Understand the basic principles of asset depreciation and its impact on financial statements.

Identify the components and considerations involved in computing depreciation expense.

Distinguish among different methods of depreciation and their financial implications.

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Definitions:

English Gothic

An architectural style prevalent in England from the late 12th to the 16th century, characterized by pointed arches, ribbed vaults, and flying buttresses.

Wells Cathedral

A historical cathedral located in Wells, Somerset, England, famous for its impressive Gothic architecture and one of the most beautiful ecclesiastical buildings in the UK.

Ely Cathedral

A historic Anglican cathedral in Ely, Cambridgeshire, England, famed for its intricate Gothic architecture and the unique Octagon tower.

York Cathedral

Also known as York Minster, it is one of the largest and most magnificent Gothic cathedrals in Northern Europe, located in York, England.