HIN 462 - The Nursing Home purchased $5,600,000 of equipment.

The Nursing Home purchased $5,600,000 of equipment. The clinic paid cash for the equipment. Please select the accounts impacted by this transaction.

a. Accounts receivable

b. Cash and temporary investments

c. Plant, Property & Equipment

d. Long-term debt

The Nursing Home purchased $600,000 of supplies on credit. Please select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Supplies

c. long-term debt

d. Accounts payable

The Nursing Home provided $9,400,000 of services on credit. Please select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Accounts receivable

c. Deferred revenues

d. Revenues, gains and other support

In the provision of these services, the clinic used $300,000 of supplies. Please select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Supplies (asset)

c. Expenses (supplies)

d. Accounts payable

The Nursing Home borrowed $3,000,000 from the bank on a long-term basis. Please select the accounts impacted by this transaction.

a. Accounts payable

b. Cash & temporary investments

c. Expense (Interest)

d. Long-term debt

The Nursing Home received an $8,000,000 unrestricted cash contribution from the community. Select the Account in this transaction.

a. Cash & Temporary Investments

b. Accounts Receivable

c. Unrestricted Net Assets

d. Revenue, Gains and Other Support

e. None of the above

The Nursing Home incurred $4,000,000 in labor expenses and paid cash for them. Select the accounts impacted by this transaction.

a. Accounts payable

b. 600

c. Long-term debt

d. Expenses (Labor

The Nursing Home incurred $2,500,000 in general expenses and paid for them in cash. Select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Expenses (General)

c. Accounts payable

d. Accounts receivable

The Nursing Home received $7,300,000 from patients and their third parties in payment of outstanding accounts. Select the accounts impacted by this transaction.

a. Revenues, gains and other support

b. Cash & temporary investments

c. Deferred revenue

d. Accounts receivable

The Nursing Home met $540,000 of its obligation to capitated patients in transaction g. Select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Revenues, gains and other support

c. Accounts receivable

d. Deferred revenue

The Nursing Home made a $300,000 cash payment on the long-term loan. Select the accounts impacted by this transaction.

a. Accounts payable

b. Cash & temporary investments

c. Long-term debt

d. Accounts receivable

A donor made a temporarily restricted donation of $350,000, which is set aside in temporary investments Select the accounts impacted by this transaction.

a. Unrestricted net assets

b. Restricted net assets

c. Cash & temporary investments

d. Revenues, gains and other support

The Nursing Home recognized $380,000 in depreciation for the year. Select the accounts impacted by this transaction.

a. Cash & temporary investments

b. Expenses (Depreciation)

c. Plant, property & equipment

d. Accumulated depreciation

The Nursing Home estimated that $800,000 of patient accounts would not be received. Select the accounts impacted by this transaction.

a Revenues, gains and other support

b. Cash & temporary investments

b. Accounts receivable

c. Allowance for bad debts

The ending operating expenses reflected in the 20X1 Statement of Operations was:

a. $8,015,00 ($8,015 abbreviated)

b. $6,800,000 ($6,800 abbreviated)

c. $4,000,000 ($4,000 abbreviated)

d. None of the above

In this case, given the information provided, operating income and the excess of revenues over expenses are equal.

True

False

At the end of the accounting period, the excess of revenues over expenses will be Transferred to the balance sheet. In this example this transfer will serve to decrease the organizations unrestricted net assets.

True

False