- P7 1 Goodness Hospital S General Ledger Contains The Following Unadjusted Account Balances Among Others At December 3 1 (227.62 KiB) Viewed 10 times
P7.1. Goodness Hospital's general ledger contains the following unadjusted account balances, among others, at December 31, 20X1: Acct. No. 104 105 120 130 131 140 141 501 502 607 609 Accounts receivable Allowance for uncollectible accounts Land Buildings Accumulated Equipment depreciation-buildings Accumulated depreciation-equipment Contractual adjustments Charity care adjustments Depreciation expense Bad debt expense $ 850,000 Contractual adjustments, 6% Charity care adjustments, 4% Bad debt expense, 5% -0- 25,000 3,000,000 -0- 1,800,000 -0- -0- -0- -0- -0- The following additional information is available: 1. Of the December 31, 20X1, accounts receivable, it is estimated that 15 percent will prove to be uncollectible due to these factors: 2. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and an expected salvage value of $200,000. 3. Equipment, which cost $1,500,000, was acquired on January 1, 20X1. Additional equipment was acquired on July 1, 20X1, for $300,000. All equipment has a 20 percent salvage value and an estimated useful life of ten years. Required: Prepare, in general journal form, all necessary adjusting entries at December 31, 20X1.