Chapter 22 ACCOUNTING FOR NOT-FOR_PROFIT ORGANIZATIONS

Questions 1 The financial statements required f r n n! "ernmental n t-f r-#r fit entities include a statement f financial # siti n$ a statement f acti"ities$ and a cash fl % statement& ' luntar( health and %elfare r!ani)ati ns als #r "ide a statement f functi nal e*#enses& +ach h s#ital$ c lle!e$ and " luntar( health and %elfare r!ani)ati n ,and ther n t-f r-#r fit r!ani)ati ns as %ell- must .e e"aluated t determine %hether it meets the definiti n f a ! "ernment in the auth ritati"e literature& Th se that meet the definiti n f a ! "ernment must a##l( the ! "ernment GAAP hierarch(& GAS/ standards are the m st auth ritati"e !uidance f r these entities& All ther entities are t a##l( FAS/ standards& The AICPA !uides .ecame n nauth ritati"e GAAP in 0112 %ith chan!es at . th FAS/ and GAS/& FAS/ 340 issued in 0115 s#ecified the hierarch( f GAAP f r n n! "ernmental r!ani)ati ns t .e m "ed fr m SAS 42 ,i&e& the auditin! standards- t FAS/ ,i&e& the acc untin! standards-& Similarl($ GAS/ 66 issued in 0112 s#ecified the hierarch( f GAAP f r ! "ernmental entities t .e m "ed fr m SAS 42 t GAS/& Su.sequentl($ FAS/ 345 issued in 0112 7 the last FAS/ 8Statement9 issued 7 created the c dificati n f GAAP in the Acc untin! Standards C dificati n as the s le auth ritati"e s urce f GAAP f r n n! "ernmental r!ani)ati ns& FAS/ n % has t% cate! ries$ the ASC %hich is auth ritati"e and e"er(thin! else is n n-auth ritati"e& GAS/ 66 :ee#s the #ri r hierarch( %here.( the AICPA audit and acc untin! !uides are le"el . 7 ;ust .eneath GAS/ Statements and Inter#retati ns& 4 A c nditi nal #r mise t !i"e de#ends n the ccurrence f a s#ecified future and uncertain e"ent t .ind the #r mis r& An unc nditi nal #r mise t !i"e de#ends nl( n the #assa!e f time r demand .( the #r misee f r #erf rmance& Or!ani)ati ns rec !ni)e c nditi nal #r mises t !i"e as c ntri.uti n re"enue and recei"a.les %hen the c nditi ns are su.stantiall( met ,in ther % rds$ %hen the c nditi nal #r mise t !i"e .ec mes unc nditi nal-< h %e"er$ the( acc unt f r a c nditi nal !ift f cash r ther asset that ma( ha"e t .e returned t the d n r if the c nditi n is n t met as a refunda.le ad"ance ,lia.ilit(-& Or!ani)ati ns rec !ni)e unc nditi nal #r mises t !i"e as restricted r unrestricted c ntri.uti n re"enue and recei"a.les in the #eri d in %hich the #r mise is recei"ed& 5 A d n r-im# sed c nditi n #r "ides that the d n r %ill ha"e his res urces returned , r %ill .e released fr m the #r mise t !i"e- if the c nditi n is n t met& A d n r-im# sed restricti n nl( limits the #ur# se r timin! f use f the c ntri.uted assets& Unc nditi nal #r mises t !i"e %ith #a(ments due in the ne*t #eri d are re# rted as restricted su## rt ,net f an a##r #riate all %ance f r unc llecti.le acc unts- that increase tem# raril( restricted net assets$ e"en if the res urces are n t restricted f r s#ecific #ur# ses& =hen a time restricti n is met$ tem# raril( restricted net assets are reclassified as unrestricted net assets& The entr( includes a de.it t tem# raril( restricted net assets>reclassificati ns ut and a credit t unrestricted net assets>reclassificati ns in& ,?ifferent acc unt titles$ such as am unts released fr m restricti ns$ are #ermitted as %ell&Gifts in :ind are re# rted as unrestricted su## rt that increases unrestricted net assets if the n t-f r-#r fit entit( has discreti n "er the dis# siti n f the res urces and a fair "alue can .e reas na.l( determined& If fair "alue cann t .e determined$ the items are rec rded as sales re"enue %hen the( are s ld& If the n t-f r 2011 Pearson Education, Inc. publishing as Prentice Hall 22-1

22-2 #r fit entit( has little r n discreti n "er dis# siti n f the items$ the !ifts in :ind sh uld .e acc unted f r as a!enc( transacti ns& 9 Pr !ram ser"ices f " luntar( health and %elfare r!ani)ati ns are e*#enses incurred in meetin! the s cial ser"ice .;ecti"es f the r!ani)ati n& +*am#les are research$ #u.lic educati n$ c mmunit( ser"ices$ and #atient ser"ices& Su## rtin! ser"ices c nsist f the r!ani)ati n@s administrati"e and fund-raisin! c sts$ and e*#enses f r these items are s classified in the statement f acti"ities& The statement f functi nal e*#enses f r " luntar( health and %elfare r!ani)ati ns is intended t rec ncile the functi nal classificati n f e*#enses ,%hich results in hi!hl( a!!re!ated data- %ith .asic .;ect- f-e*#enditure classificati ns that are less a!!re!ated and easier f r man( users t understand& C ntri.uted ser"ices are rec !ni)ed nl( if the ser"ices ,a- create r enhance n nfinancial assets f the r!ani)ati n r ,.- require s#eciali)ed s:ills$ are #r "ided .( indi"iduals # ssessin! th se s:ills$ and % uld t(#icall( need t .e #urchased if n t #r "ided .( d nati n& Charit( care is e*cluded fr m . th !r ss #atient ser"ice re"enue and fr m e*#ense& The h s#ital@s # lic( f r #r "idin! charit( care and the le"el f charit( care #r "ided are discl sed in n tes t the financial statements& Net #atient ser"ice re"enues f h s#itals are measured .( deductin! c urtes( all %ances and c ntractual ad;ustments fr m !r ss #atient re"enues& Unc llecti.le acc unts e*#enses are n t deducted in c m#utin! net #atient ser"ice re"enues& Net #atient ser"ice re"enues are re# rted in the statement f acti"ities& The three ma; r re"enue !r u#in!s used .( h s#itals are #atient ser"ice re"enues$ ther #eratin! re"enue$ and n n #eratin! !ains& +*am#les areA Patient ser"ice re"enues>r utine care$ emer!enc( r m$ rec "er( r m$ #harmac( Other #eratin! re"enues>tuiti n fr m educati nal #r !rams$ research !rants f r s#ecific #ur# ses$ !ift sh # sales N n #eratin! !ains>unrestricted !ifts$ unrestricted end %ment inc me$ !ain n sale f #lant assets$ rents fr m #r #ert( n t used in h s#ital #erati ns ,Premium fees als are si!nificant f r man( h s#itals t da(& The( % uld .e re# rted as a se#arate line item under #eratin! re"enues&/ th the #r "isi n f r .ad de.ts , ther than f r charit( care$ %hich is n t rec rded as re"enue- and de#reciati n are e*#enses f a h s#ital& B s#itals use full accrual acc untin! #r cedures& FAS/ Statement N & 33C ,n % c dified in FAS/ ASC 265- requires #ri"ate n t-f r-#r fit uni"ersities t #r "ide a set f financial statements that includes a statement f financial # siti n$ statement f acti"ities$ statement f cash fl %s$ and acc m#an(in! n tes& G "ernmental uni"ersities are c nsidered s#ecial#ur# se ! "ernments under GAS/ Statements N & DE and D6& S#ecial-#ur# se ! "ernments %ith m re than ne ! "ernmental #r !ram r . th ! "ernmental and .usiness-t(#e acti"ities #resent . th ! "ernment-%ide and fund financial statements$ as %ell as the F?GA$ n tes$ and required su##lementar( inf rmati n& S#ecial-#ur# se ! "ernments %ith nl( ne ! "ernmental #r !ram ma( c m.ine fund and ! "ernment-%ide statements$ %hereas th se %ith nl( .usiness-t(#e acti"ities sh uld re# rt nl( the financial statements required f r enter#rise funds$ as %ell as the F?GA$ n tes$ and required su##lementar( inf rmati n& G "ernment c lle!es and uni"ersities n l n!er ha"e the #ti n f usin! the AICPA c lle!e !uide< h %e"er$ man( r!ani)ati ns ma( ha"e retained AICPA m del features f r internal acc untin! and c ntr l #ur# ses& Fuch !uidance c mes fr m the Financial Acc untin! and Re# rtin! Fanual$ an acc untin! manual #re#ared .( the Nati nal Ass ciati n f C lle!e and Uni"ersit( /usiness Officers ,NACU/O- %hich is a"aila.le as an nline su.scri#ti n ser"ice&

10

11

12

13

14

15 16

17

18

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22-3 GAS/ Statements N & DE and D6 require s#ecial-#ur# se ! "ernment %ith m re than ne ! "ernmental #r !ram r . th ! "ernmental and .usiness-t(#e acti"ities t #resent . th ! "ernment-%ide and fund financial statements$ as %ell as the F?GA$ n tes$ and required su##lementar( inf rmati n& S#ecial#ur# se ! "ernments %ith nl( ne ! "ernmental #r !ram ma( c m.ine fund and ! "ernment-%ide statements$ %hereas th se %ith nl( .usiness-t(#e acti"ities sh uld re# rt nl( the financial statements required f r enter#rise funds$ as %ell as the F?GA$ n tes and required su##lementar( inf rmati n& Functi nal classificati ns include the f ll %in!A Instruction. +*#enses f r the educati nal #r !rams Resource. +*#enses t #r duce research utc me Public Service. +*#enses f r acti"ities t #r "ide n ninstructi nal ser"ices t e*ternal !r u#s Aca e!ic su""ort. +*#enses t #r "ide su## rt f r instructi n$ research$ and #u.licati ns Stu ent Services. Am unts e*#ended f r admissi ns and re!istrar$ and am unts e*#ended f r students@ em ti nal$ s cial$ and #h(sical %ell-.ein! Institutional su""ort. Am unts e*#ended f r administrati n and the l n!-ran!e #lannin! f the uni"ersit( #"eration an !aintenance o$ "lant. +*#enses f r #eratin! and maintainin! the #h(sical #lant ,net f am unts t au*iliar( enter#rises and uni"ersit( h s#itals Stu ent ai . +*#enses fr m restricted r unrestricted funds in the f rm f !rants$ sch larshi#s$ r fell %shi#s t students&

20

21

Pr #ert($ #lant$ and equi#ment acquired .( a n t-f r-#r fit r!ani)ati n %ith unrestricted r restricted res urces ma( .e rec rded at acquisiti n as unrestricted r tem# raril( restricted& If tem# raril( restricted$ the assets are reclassified %hen de#reciati n is rec !ni)ed&

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22-4 %&%R'IS%S %22(1 1 2 3 4 5 %22(4 1 2 3 4 5 %22(7 1 2 3 4 5 %22(8 Pr !ram ser"icesA +ducati n Pu.lic Bealth Research Su## rtin! ser"icesA Fund raisin! Fana!ement and !eneral %22(9 1) C ntri.uti ns recei"a.le All %ance f r unc llecti.le c ntri.uti ns Unrestricted su## rt > c ntri.uti ns Restricted su## rt > c ntri.uti ns T rec rd c ntri.uti n re"enues and an all %ance f r unc llecti.le acc unts& 01$111 411 3D$651 6$501 H01$E11 36$C11 30$111 H33$E11 6$611 d a d c . a . a a c . a c a d %22(2 1 2 3 4 5 %22(5 1 2 3 4 5 . a d . c . . c c d %22(3 1 2 3 4 5 %22(6 1 2 3 4 5 . . c d a . a a c .

HE5$311

H34$211

C ntri.uti ns that are n t due until the ne*t #eri d im#l( a time restricti n unless the d n r e*#licitl( sti#ulates that the #led!e is f r current e*#enditures& Thus$ unrestricted net assets are increased .( H3D$651 and tem# raril( restricted net assets are increased .( H6$501& 2) Cash 011 011

Restricted su## rt > c ntri.uti ns T rec rd a !ift restricted t a s#ecial #r ;ect& ,Recall that s me NFPs ma( rec rd as unrestricted if the restricti n is met in the same #eri d&+*#enses > c mmunit( ser"ice I#r !ram ser"icesJ Cash T rec rd e*#enditures f r restricted #ur# se& 011

011

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22-5 Tem# raril( restricted net assets > reclassificati ns ut Unrestricted net assets > reclassificati ns in T rec rd satisfacti n f tem# rar( restricti n& 3) +qui#ment Unrestricted su## rt > C ntri.uti ns T rec rd recei#t f d nated equi#ment& ?e#reciati n e*#ense > c mmunit( ser"ices Accumulated de#reciati n > equi#ment T rec rd de#reciati n e*#ense f r the (ear n unrestricted l n!-li"ed assets& 3$611 3$611 011 011

4$111 4$111

The r!ani)ati n ma( als ad #t an acc untin! # lic( that im#lies a time restricti n that e*#ires "er the useful life f the d nated asset& If the !ift is re# rted as restricted su## rt in tem# raril( restricted net assets$ de#reciati n is rec rded as an e*#ense in unrestricted net assets$ %hich results in a reclassificati n f r the am unt f the de#reciati n fr m tem# raril( restricted t unrestricted net assets& 4) Cash Restricted su## rt > c ntri.uti ns T rec rd recei#t f d nati n restricted t the #urchase f a truc:& Accrued interest recei"a.le Restricted re"enue > in"estment inc me T rec rd accrual f interest n funds restricted f r the #urchase f a truc:& 036 036 5$111 5$111

The c ntri.uti n f cash restricted f r l n!-li"ed asset #urchases increased tem# raril( restricted net assets$ as did the d n r-restricted in"estment inc me n th se funds& 5) Acc unts recei"a.le Unrestricted re"enues > tuiti n and fees T rec rd tuiti n and fees& Tuiti n reducti nA unrestricted>student aid Acc unts recei"a.le T rec rd tuiti n reducti ns& +*#enses>educati nal and !eneral>instituti nal su## rt All %ance f r unc llecti.le acc unts T rec rd all %ance f r unc llecti.le acc unts& 6) Cash Tem# raril( restricted c ntri.uti n > t .acc research T rec rd recei#t f restricted !rant& +*#enses > t .acc research Cash T rec rd e*#enses f r t .acc research& Tem# raril( restricted c ntri.uti n > t .acc research C ntri.uti n ,unrestrictedT reclassif( the c ntri.uti n as unrestricted& 3$011$111 3$011$111 CD6$111 CD6$111

46$111 46$111

C$D61 C$D61

D$111$111 D$111$111

3$011$111 3$011$111

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22PR#*+%,S P22(1 Voluntary Health and Welfare Organization gift 1 a Cash Unrestricted su## rt>c ntri.uti ns T rec rd cash c ntri.uti n recei"ed& . +*#enses ,.( functi nCash T rec rd #eratin! e*#enses #aid& 6$111$111 6$111$111

0$D11$111 0$D11$111

Private University Gift 2 a Cash Restricted su## rt>c ntri.uti ns > research T rec rd restricted cash !ift recei"ed& . +*#enses>research Cash T rec rd research e*#enses& Tem# raril( restricted net assets> reclassificati ns ut Unrestricted net assets > reclassificati ns in T rec rd release f assets fr m tem# rar( restricti ns& Local Hospital Gift 3 a Cash Restricted su## rt > c ntri.uti ns T rec rd cash !ift restricted f r ca#ital additi ns& . C nstructi n in #r !ress Cash T rec rd c nstructi n c sts incurred& Tem# raril( restricted net assets > reclassificati ns ut Unrestricted net assets > reclassificati ns in T rec rd release f assets fr m tem# rar( restricti ns& P22(2

6$111$111 6$111$111

0$D11$111 0$D11$111

0$D11$111 0$D11$111

6$111$111 6$111$111

0$D11$111 0$D11$111

0$D11$111 0$D11$111

Payment of salaries +*#enses > mana!ement and !eneral 0$201 +*#enses > c mmunit( ser"ice 33$451 Cash T rec rd #a(ment f salaries all cated 01K t mana!ement and !eneral ser"ices and 51K t #r !ram ser"ices& onated services +*#enses > mana!ement and !eneral Unrestricted su## rt > d nated ser"ices

3E$411

211 211

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22-! T rec rd d nated ser"ices& onated facilities +*#enses > mana!ement and !eneral 411 +*#enses > c mmunit( ser"ice 0$E11 Unrestricted su## rt > d nated facilities T rec rd all cati n f d nated facilities 01K t mana!ement and !eneral and 51K t #r !ram ser"ices& Payment of utilities +*#enses > mana!ement and !eneral D41 +*#enses > c mmunit( ser"ice 3$EE1 Cash T rec rd #a(ment f utilities all cated 01K t mana!ement and !eneral and 51K t #r !ram ser"ices& Purchase and use of supplies Su##lies in"ent r( Cash T rec rd #urchase f su##lies&

D$111

3$511

D11 D11

+*#enses > mana!ement and !eneral 41 +*#enses > c mmunit( ser"ice 0E1 Su##lies in"ent r( T rec rd all cati n f su##lies e*#ense 01K t mana!ement and !eneral and 51K t #r !ram ser"ices& !dministration and other e"penses +*#enses > mana!ement and !eneral 3$011 +*#enses > c mmunit( ser"ice E$511 Cash T rec rd #a(ment f rec rd:ee#in! e*#enses all cated 01K t mana!ement and !eneral and 51K t #r !ram ser"ices& Gifts in #ind are re# rted as c ntri.uti ns since Share Sh # has discreti n "er their distri.uti n and a fair "alue is determina.le& =hen !ifts in :ind are distri.uted t reci#ients$ the( are rec rded as #r !ram e*#enses& If fair "alue cann t .e determined$ neither the c ntri.uti n n r distri.uti n % uld .e rec rded& In"ent r( > n n#erisha.le f d In"ent r( > h useh ld items Unrestricted su## rt > d nated assets T rec rd recei#t f d nated f d and h useh ld items& +*#enses > c mmunit( ser"ice In"ent r( > n n#erisha.le f d In"ent r( > h useh ld items T rec rd distri.uti n f f d and h useh ld items t qualified reci#ients& Cash contri$utions Cash Unrestricted su## rt > c ntri.uti ns T rec rd recei#t f cash c ntri.uti ns& 41$111 E1$111

D11

4$111

311$111

46$111 E6$111 01$111

31$111 31$111

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22-"

Unconditional promises to give ,s luti n assumes all #led!es %ere due in 0133Pled!es recei"a.le Unrestricted su## rt > c ntri.uti ns All %ance f r unc llecti.le #led!es T rec rd #led!es recei"ed and 31K estimated unc llecti.le #led!es&

01$111 35$111 0$111

Cash 36$111 Unrestricted su## rt > c ntri.uti ns D$111 All %ance f r unc llecti.le #led!es 3$111 C ntri.uti ns recei"a.le Tem# raril( restricted su## rt > c ntri.uti ns T rec rd recei#t f cash$ ad;ust the all %ance acc unt f r the "erstatement f unc llected #led!es$ and reclassif( unc llected su## rt& Grant Grant recei"a.le Tem# raril( restricted su## rt > !rant T accrue !rant fr m T %n f N rth Ptarmi!an due in 0130&

36$111 E$111

06$111 06$111

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22-# P22(3 -o!eto.n ,e!orial -os"ital Statement f O#erati ns F r the (ear ended ?ecem.er D3$ 0133 Unrestricted revenues% gains% and other support& Net #atient ser"ice re"enues ,H0$611$111 - HE11$111 - H311$111Other #eratin! re"enues ,HD11$111 L H61$111Inc me fr m in"estment in affiliate In"estment inc me Unrestricted c ntri.uti ns Net assets released fr m restricti ns f r #eratin! #ur# ses T tal #eratin! re"enues$ !ains$ and net assets released fr m restricti ns f r #erati ns '"penses and Losses& Nursin! ser"ices Other #r fessi nal ser"ices General ser"ices Administrati"e ser"ices Unc llecti.le acc unts M ss n sale f fi*ed assets ?e#reciati n T tal e*#enses and l sses +*cess f re"enues$ !ains$ and ther su## rt "er e*#enses and l sses Net assets released fr m restricti ns f r acquisiti ns f fi*ed assets Increase in unrestricted net assets

H0$111$111 D61$111 51$111 0C1$111 011$111 51$111 0$251$111

3$111$111 611$111 021$111 D31$111 361$111 61$111 011$111 0$611$111

E51$111

2C$111 H 6CC$111

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22-10 P22(4 Acc unts recei"a.le Unrestricted re"enues > tuiti n and fees T rec rd tuiti n and fees& Tuiti n reducti nA unrestricted>student aid Acc unts recei"a.le T rec rd tuiti n reducti ns& Cash Unrestricted re"enues > state a##r #riati n Unrestricted re"enues > l cal a##r #riati n T rec rd ! "ernmental a##r #riati ns& Cash Re"enue 7 au*iliar( #erati ns T rec rd au*iliar( re"enues& +*#enses 7 au*iliar( #erati ns Cash T rec rd au*iliar( e*#enses& Cash Unrestricted re"enues>c ntri.uti ns Tem# raril( restricted re"enues> c ntri.uti ns T rec rd c ntri.uti ns recei"ed& Cash Unrestricted re"enues>!ifts and !rants Tem# raril( restricted re"enues>Gifts and !rants T rec rd !ifts and !rants recei"ed& +*#enses 7 educati nal and !eneral - instructi n +*#enses 7 educati nal and !eneral - research +*#enses 7 educati nal and !eneral 7 student ser"ices +*#enses 7 educati nal and !eneral 7 #erati n f #lant +*#enses 7 educati nal and !eneral 7 student aid Cash , r #a(a.lesT rec rd educati nal and !eneral e*#enses& Tem# raril( restricted net assets > reclassificati ns ut Unrestricted net assets > reclassificati ns in T reclassif( tem# raril( restricted assets ,assumes all sch larshi#s and research %ere fr m tem# raril( restricted funds- & 0$311$111 311$111 301$111 351$111 011$111 0$C11$111 D51$111 51$111 D11$111 E51$111 E51$111 611$111 611$111 0$111$111 0$111$111

301$111 301$111

3$311$111 511$111 D11$111

21$111 01$111 C1$111

D11$111 D11$111

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22-11 /on0overn!ental /1P 'olle0e Statement f Acti"ities f r the (ear 011N (evenues
Tuiti n and fees ,netState a##r #riati ns Federal !rants and c ntracts Pri"ate !rants and !ifts +nd %ment inc me Sales and ser"ices f educati nal de#artments Sales and ser"ices f au*iliar( enter#rises T tal current re"enues )otal net assets released from restrictions for operations T tal re"enues and reclassificati ns H3$551$111 3$311$111 51$111 01$111 611$111 HD$651$111 D11$111 H D$551$111

'"penses
+ducati nal and !eneral Instructi n Research Student ser"ices O#erati n and maintenance f #lant Student aid Au*iliar( #erati ns T tal #eratin! e*#enses Net increase in unrestricted net assets Changes in temporarily restricted net assets& Federal !rants and c ntracts Pri"ate !rants and !ifts +nd %ment inc me Net assets released fr m restricti nsO Increase in tem# raril( restricted net assets Chan!e in net assets Net assets$ .e!innin! Net assets$ endin! Oassumes all sch larshi#s and research %ere fr m tem# raril( restricted funds 0$311$111 311$111 301$111 351$111 011$111 E51$111 D$351$111 C11$111

D11$111 C1$111 -D11$111 C1$111 CC1$111 1 H CC1$111

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22-12 P22(5 'o!!unit2 Societ2 Statement f Acti"ities F r the Pear +nded ?ecem.er D3$ 0133 Chan!es in Unrestricted Net Assets Re"enues and !ains C ntri.uti ns Fem.ershi# dues In"estment inc me T tal re"enue and !ains Net assets released fr m restricti nsA F r research F r fi*ed assets Increase in unrestricted net assets +*#ensesA Pr !ram Ser"icesA Research +ducati n T tal Pr !ram Ser"ices Su## rtin! Ser"icesA Fana!ement and !eneral Fund raisin! T tal Su## rtin! Ser"ices T tal e*#enses Net increase in unrestricted net assets Chan!es in Tem# raril( Restricted Net Assets C ntri.uti ns ,HED5$111 L HE06$111 - H34$111In"estment inc me Gain n sale f in"estments Net assets released fr m restricti ns ?ecrease in tem# raril( restricted net assets Chan!es in Permanentl( Restricted Net Assets C ntri.uti ns Increase in #ermanentl( restricted net assets Increase in net assets Net assets$ .e!innin! Net assets$ endin!

HD$111$111 E11$111 5D$111 D$E5D$111 H 611$111 D$C52$111

E$052$111 C$CC0$111

0$D11$111 D11$111 0$411$111 33C$111 00D$111 DE1$111 0$2E1$111 E$5D0$111

5EC$111 00$611 6$111 ,E$052$111,D$E3E$611-

DC$111 DC$111 3$E6E$611 6$EC6$111 H4$202$611

2011 Pearson Education, Inc. publishing as Prentice Hall

22-13 P22(6 1 Tuiti n and fees recei"a.le Re"enues > educati nal and !eneral T rec rd tuiti n re"enues& +*#enditures > sch larshi#s +*#enditures > .ad de.ts Tuiti n and fees recei"a.le All %ance f r unc llecti.le acc unts T rec rd sch larshi#s and estimated .ad de.ts& Cash Tuiti n and fees recei"a.le T rec rd c llecti ns f recei"a.les& 2 Cash Re"enues > sales and ser"ices f au*iliar( enter#rises T rec rd sales f . :st re& 3 +*#enditures > educati nal and !eneral +*#enditures > au*iliar( enter#rises Cash T rec rd #a(r ll& F rt!a!e #a(a.le Cash T rec rd m rt!a!e #a(ment& F rt!a!e #a(a.le Interest e*#ense Cash T rec rd de.t ser"ice #a(ment& Cash Tem# raril( restricted re"enues> c ntri.uti ns T rec rd restricted !ift& +*#enditures > instructi n Cash T rec rd e*#enditures f r #r !ram& Tem# raril( restricted net assets> reclassificati ns ut Unrestricted net assets>reclassificati ns in T reclassif( re"enues equal t qualif(in! e*#enditures& 8 Tem# raril( restricted net assets> reclassificati ns ut Unrestricted net assets>reclassificati ns in T reclassif( re"enues equal t qualif(in! e*#enditures& +qui#ment Cash T rec rd equi#ment #urchased& 0$ED1$111 3C1$111 0$411$111 511$111 511$111 4$111$111 4$111$111

011$111 311$111 011$111 311$111

E$511$111 E$511$111

3$111$111 3$111$111

D41$111 411$111 241$111

EE1$111 EE1$111

0DC$111 0DC$111

0DC$111 0DC$111

EE$111 EE$111

EE$111 EE$111

2011 Pearson Education, Inc. publishing as Prentice Hall

22-14 P22(7 1 Tem# raril( restricted net assets > reclassificati ns ut Unrestricted net assets > reclassificati ns in T rec rd satisfacti n f time restricti n& Pled!es recei"a.le Cash All %ance f r unc llecti.le #led!es Unrestricted su## rt > c ntri.uti nsO T rec rd c ntri.uti ns&
O

01$111 01$111

46$111 D6$111 D$061 24$C61

T the e*tent that #led!es are n t c llected .( (ear end a time restricti n %ill .e im#lied& An ad;ustin! entr( reducin! unrestricted su## rt and rec rdin! tem# raril( restricted su## rt f r the net reali)a.le "alue f the unc llected #led!es %ill .e required&

In"ent r( f materials Unrestricted su## rt > d nated materials T rec rd d nati ns f f d& +*#enses > Pr !ram ser"ices In"ent r( f materials T rec rd e*#enses f r f d used&

361$111 361$111

363$011 363$011

In"ent r( f su##lies Cash T rec rd #urchases f su##lies&

0C$111 0C$111

+*#enses > mana!ement and !eneral +*#enses > Pr !ram ser"icesO In"ent r( f su##lies Cash T rec rd e*#enses incurred& O ,H5$111 L C1$111 L I0C$111 7 6$111 acc unt increaseJ5 Pled!es recei"a.le All %ance f r unc llecti.le #led!es Tem# raril( restricted su## rt > c ntri.uti ns T rec rd restricted #led!es&

31$111 311$111 00$111 55$111

D11$111 36$111 056$111

Solution P22(8 1 Patient acc unts recei"a.le Patient ser"ice re"enues>unrestricted T rec rd #atient ser"ice char!es at esta.lished rates& C ntractual ad;ustments Patient acc unts recei"a.le T rec rd c ntractual ad;ustments& /ad de.t e*#ense All %ance f r unc llecti.le Patient acc unts recei"a.le T esta.lish an all %ance f r unc llecti.le recei"a.les& 310$D11 310$D11

D1$111 D1$111

0$1E4 0$1E4

2011 Pearson Education, Inc. publishing as Prentice Hall

22-15 2 Cash Premium Re"enue > unrestricted T rec rd #remium re"enue fr m ca#itati n a!reements 3 Cash Other #eratin! re"enue - unrestricted T rec rd #harmac( re"enue& 4 Nursin! ser"ices e*#ense Other #r fessi nal ser"ices General ser"ices Fiscal ser"ices Administrati"e ser"ices Cash T rec rd salaries and %a!es& Cash Grant re"enue - restricted T rec rd recei#t f restricted !rant funds& 6 Su##lies in"ent r( Cash , r acc unts #a(a.leT rec rd the #urchase f nursin! su##lies& Su##lies e*#ense Su##lies in"ent r( T rec rd the use f nursin! su##lies& 3D$111 3D$111 D6$111 33$111 31$111 0$111 01$111 C5$111 34$111 34$111 6E$111 6E$111

30$111 30$111

4$C11 4$C11

2011 Pearson Education, Inc. publishing as Prentice Hall