A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000 Interest on bank deposit, net of 20% withholding tax 40,000 Dividend income from a domestic corporation 100,000 An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a depreciable life of 25 years. a. Compute the income tax still due and payable in 2X18. b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.

A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000 Interest on bank deposit, net of 20% withholding tax 40,000 Dividend income from a domestic corporation 100,000 An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a depreciable life of 25 years. a. Compute the income tax still due and payable in 2X18. b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 4PA: Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the...

See similar textbooks

Similar questions

1. A not-for-profit hospital performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work. Additionally, officials expect another $94,000 to be bad debts. What should the hospital report as net patient service revenues? Select one: a.$906,000 b.$1,000,000 c.$706,000 d.$800,000 2. In the accounting for health care providers, what are third-party payors? Select one: a.Friends and relatives who pay the medical costs of a patient. b.Doctors who reduce fees for indigent patients. c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States. d.Charities that supply medicines to hospitals and other health care providers. 3.What is a contractual adjustment? Select one: a.A year-end journal entry to recognize all of a health care entity's remaining receivables. b.An increase in a patient's…
Prepare journal entries to record the following transactions of a nonprofit hospital, with expense transactionscategorized by function:1. The hospital billed its uninsured patients for $300,000. Based on historical experience, it expects tocollect 45 percent of that amount over time.2. Nurses and doctors employed by the hospital were paid their salaries, $120,000.3. The chief administrative officer was paid her salary of $12,000.4. The hospital paid its utility bill, $6,000.5. Depreciation on the equipment was $40,800.6. Several adults donated their time (worth $6,000) selling merchandise in the hospital gift shop.7. The hospital billed Medicare $120,000 for services provided at its established rates. The prospectivebilling arrangement gives Medicare a 40 percent discount from these rates.8. A contribution without donor restrictions of $4,800 was received. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.
66. A private not-for-profit hospital provided $150,000 in charity care for the current year. The hospital should report this charity care as a. Net patient service revenue of $150,000 and pa- tient care expense of $150,000. b. Net patient service revenue of $150,000 on the statement of operations. c. Only in the notes to the financial statements. d. As an unpaid accounts receivable on the balance sheet. 67. The Johnson Hospital, a private not-for-profit hospital, received the following revenues in the cur- rent year: Proceeds from sales of the Hospital's flower shop Dividends and interest revenue not restricted $60,000 $20,000 Cash contributions for the renovation of the children's ward in the Hospital $200,000 Which of these amounts should be reported as other revenues and gains (other revenue) on the Statement of Operations? a. $280,000 b. $60,000 c. $80,000 d. $260,000 68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator revenues and gains…
The following are hospital revenues: P 345,000 Tuition for entry to the nursing school An unrestricted gift of cash General nursing fees charged to patients Charges for physidans care A restricted gift used for research on 52,000 948,000 720,000 genes Dividends from the hospital's 84,000 75,000 investment Revenue from gift shop sales Patient room and board charges 116,000 459,000 103,000 396,000 Proceeds from sales of cafeteria meals Recovery room fees How much is the patient services revenue? How much is the operating revenue? How much is the total non-operating revenue?
1. A hospital reports the following information: Estimated bad debts—non-charity patients $ 500,000 Contractual adjustments—third party payors 1,000,000 Direct gross billings to non-charity patients 5,000,000 Gross billings to insurance companies and Medicare/Medicaid 17,000,000 Charity care, estimated billing value 2,000,000 Charity care, cost 1,200,000 Net patient service revenue, as reported on the hospital's statement of activities, is: 2. NFP organizations like the Red Cross invest in derivatives to hedge their financial risks. How do the accounting standards for NFP hedge investments differ from the accounting standards for other NFP investments? Select one: A. There is no difference. B. Unrealized gains and losses on hedge investments are reported as changes in net assets with donor restrictions on the statement of activities, while unrealized gains and losses on other investments are not reported. C. Unrealized gains and…
A not-for-profit medical center performs services in the current year at a charge of $1 million. Officials expect bad debts to be $94,000. Another $200,000 is viewed as charity care services because no collection was expected at the time of the work. What should the medical center report as net patient service revenues? Choose the correct.a. $706,000b. $800,000c. $906,000.d. $1,000,000
St. Matthew Hospital, a private 40-bed hospital in Bataan province, presented the following data for the taxable year, 2018: Gross receipts from patients and laboratory 5,000,000.00 ;Income earned from unrelated activities 1,500,000.00 ; Total hospital expenses 2,300,000.00. What is the rate of unrelated activity income to St. Matthew Hospital's gross income? Determine the income tax liability of St. Matthew Hospital.
During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year). Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care; $928,000 was paid by uninsured patients; and $8,222,000 was billed to Medicare, Medicaid, and insurance companies. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1). An unconditional contributionPage 687 of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimer’s patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year. A total of $965,000 was received from…
A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? Choose the correct.a. $50,000b. $80,000c. $130,000d. $280,000
P1.2. Alice Hospital provides you with the following information that relates to its operating results for the year ended December 31, 20X1: Nursing services expenses $3,900 Deductions from patient services revenues 1,200 Other professional services revenues 4,800 General services expenses 1,700 Nonoperating income 140 Fiscal and administrative services expenses 1,200 Daily patient services revenues 6,320 Other professional services expenses 2,610 Other operating revenues 450 Required: Prepare, in good form, a statement of operations for Alice Hospital for the year ended December 31, 20X1.
Record the following transactions on the books of St. Marie's Hospital, a private not-for-profit hospital. (a) The Hospital billed patients $692,000 for services rendered. Of this amount, 5% is expected to be uncollectible due to implicit price concessions. Contractual adjustments with insurance companies are expected to total $103,000. (b) The Hospital received $800,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 7% are expected to be uncollectible. (c) Charity care in the amount of $41,000 (at standard charges) was performed on an indigent patient. (d) The Hospital collected $550,900 for the services performed in (1) above. Actual contractual adjustments for these services amounted to $106,400 15,490 of receivables were identified as uncollectible and written off.
Record in general journal form the following selected transactions for Meridian Hospital, a nongovernmental not for-profit institution. (or no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Gross charges accrued for patient services rendered during the period amounted to $7,870,000, of which $350,000 represented charity care for indigent patients 2. During the year the implicit price concessions for individual payors was determined to be $190,000 and contractual adjustments amounted to S435,000. 3. A wealthy donor donated $2.000,000 in cash to construct a new cardiology wing on the hospital. 4. During the yeat, the new cardiolody wing (see item 3) was one-half completed at a cost of $1.000.000. View transaction list Journal entry worksheet Record the $190,000 implicit price concessions for individual payers and $435,000 contractual adjustments. Note Enter debits befare credits Transaction General Journal Debit Credi 02…