Record the Following Transactions for Porter Hospital,a Private,nonprofit Hospital

question 43

Essay

Record the following transactions for Porter Hospital,a private,nonprofit hospital:
1.Gross patient services revenues: $25,000,000.Billed to patients.
2.Included in the above revenues are: charity services,$500,000; contractual adjustments,$11,000,000; and estimated uncollectible amounts,$250,000.
3.Purchased equipment by issuing a 5-year note for $200,000.
4.Received cash donations restricted for a capital building addition program,$5,100,000.
5.Incurred and paid $1,700,000 of contractor billings for the capital building program.

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Definitions:

Compounded Monthly

A method where interest earned is added to the principal amount on a monthly basis, and future interest is calculated on the new total.

Life of the Loan

The duration over which a loan is scheduled to be repaid.

Total Interest

The cumulative amount of interest paid on a loan over its entire term, encompassing all interest charges over the life of the loan.

Annual Payments

Regular payments made once a year, often associated with loans, annuities, or investment returns.