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11151734 Section Bl nal Take-Home Portion Name: Boston Hospital had the following aocount balances on January 1, 2018: Bosto n Hospital ll sh...

This assignment involves creating a balance sheet, income statement, cash flows, recording journal entries, and calculating ratios.Screen Shot 2018-05-05 at 8.38.59 AM.pngScreen Shot 2018-05-05 at 8.39.08 AM.pngScreen Shot 2018-05-05 at 8.39.16 AM.pngScreen Shot 2018-05-05 at 8.39.25 AM.pngScreen Shot 2018-05-05 at 8.39.34 AM.pngScreen Shot 2018-05-05 at 8.39.41 AM.pngScreen Shot 2018-05-05 at 8.39.50 AM.png

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11151734 Section Bl
final—— Take-Home Portion Name: Boston Hospital had the following aocount balances on January 1, 2018: Bosto n Hospital ll sh
Accounts Receivable Prepaid Inventoryr Equipment Accumulated Depreciation
Investments in Stocks
Endowments Accounts Payable Interest Payable Deferred Revenue Long Term Debt Permanently Restricted Net Assets
Temporarilvr Restricted Net Assets 1.0 ml —
— 5 Problem #1: Prepare the Balanoe Sheet at Januaryr 1, 2018 base on the trial balance above. Based on
the entries below, prepare the balance sheet at December 31, 2018

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Balaton Q Balm 9 Balance Sheet December 31,. 21318 E-
J.- Prohlem 2: Reoord the adjusting journal entries in proper form for the following transactions 1. Boston Hospital provided services to patients of 54,000,000 throughout the year on account.

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Per agreement with the insurance company, 2796 of revenue was not expected to be collected.
At December 31, 2018, it was estimated that patients who were expected to pay $50,000 of the
receivable were not going to pay. The equipment that Boston Hospital owned had a useful life of 10 years with no salvage value,
record the adjusting entry at December 31, 2018. Included in the prepaid balance of $2,100,000 is a prepayment of 1,500,000 for 3 years of rent
paid on January 1, 2018. At December 31, 2018, what is the adjusting entry?
Patients paid $1,150,000 in cash for services rendered in transaction #1 Boston Hospital has 250,000 shares of stock in New London Corporation. On June 30,
2018, New London Corporation declared a cash dividend of $0.5015hare. On December
28, 2018, New London Corporation paid $0.25,!‘share, stating that the other $0.25fshare
would be paid at a later date. [In July 1, 2018, Boston Hospital issued $25,000,000 of 3.5% Ebonds at 93.5% of face value. The bonds pay interest semi-annually on January 1 and July 1. Boston Hospital paid [in
cash} 511000 in cost of issuance. What are the entries at July 1, 2018 What are the entries at 12!31l2018 for the bond issuance in #6 (hint, there are 3].
Boston Hospital used 1,000,000 ofthe supplies inventory

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Prabiem 3: Prepare the Income Statement for the transactions above Boston Hos- tal kncome Statement — December 31, 2018

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Problem 4: Prepare the Cash Flow fur the Transactions above [hint use balance sheet for beginning and
ending cash] Cash Flow Beginning Cash Balance Operating Tomi operating activities . Financi :; To mi Financing -
Investi :1 To mi investing -
Total Increase decrease incash - Beginning Cash
Ending Cash Per Balance Sheet
Variance

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Problem 5: Using the Balance Sheet from Problem one and prior years inoome statement {below}.
Calculate the following: Operating Profit Margin ratio, operating expense ratio, rate on return of net assets and total assets, Net asset ratio. Based on the outoome of the ratios, provide some perspective
on the financial state of the hospital in comparison to prior yea r. Boston Hospital Income Statement
mber 31 201? Ii Gross Patient Service
Revenue 5,200,000 Contractual Adjustments [1,404,000] Bad Debt 30 000 Net Patient Service Revenue 3,?66,000 Total Revenue 3,166,000 Rent Expense 3?5,000 Interest Expense
Supplies Expense 950,000 Depreciation Expense 2,400,000 Total Expense 3,125,000 Inoome from Operations 41,000 Interest Income §

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