Accounting -Lincoln Memorial Hospital (LMH)

| September 6, 2016

Balance Sheet
Using the information contained in Chapter 3, you will need to utilize some or all of the elements listed below. You will need to construct the balance sheet for Lincoln Memorial Hospital. You will need to use the facts given below to help you determine what elements to use and what value each of them should have. A list of elements will be provided to you. There might be unused elements when you have completed the project. This assignment will challenge critical thinking skills.

An example of a balance sheet can be found on page 115 of your text. You will find it helpful to review this while working through this assignment. It will also be important to remember the balancing equation presented in Chapter 3.

You will be required to complete this assignment in the second tab on the Excel file below. The elements are made available to you on the first tab.

This assignment will be worth 25 points. You will receive 1 point for every correct entry in the balance sheet.

Facts about Lincoln Memorial Hospital (LMH)

LMH bought land in 2000 for $30,000.

LMH received $15,000 in grant monies in 2015 for a project that hadn’t yet been completed per criteria of the grant at the end of 2015. That is they still owed the granting agency work to be performed within the first six months of 2016.

LMH received a December 31, 2015 statement on its’ CD that it bought in 2013 stating the value of the CD was $500,000. The CD isn’t set to mature until 2018.

LMH constructed a new building on their campus in January 2014. The building cost LMH $1,200,000. LMH financed the building entirely through bonds. The bond is payable for 30 years. LMH makes principal only payments monthly. Payments started in January 2014.

LMH had $2,000 in its’ petty cash fund at 12/31/15.

Patients had been billed for $2,500,000 in services during 2015. $800,000 still remained unpaid by patients and insurance companies at the end of the year. Management estimated that they would not be able to collect $200,000 of the unpaid amount from their patients.

The total depreciation that had been expensed over the lifetime of the building was $60,000 at year end. the amount of depreciation that was expensed in 2015 was $30,000.

LMH also received a December 31, 2015 bank statement for its’ general checking account with an ending balance of $325,000. The ending balance on LMH’s December 31, 2015 Bank Reconciliation was $300,000.

LMH had an invoice dated 12/15/2015 from the Electric Company for $13,000, an invoice from 12/23/15 from a plumber for some maintenance completed for $2,000, and an invoice from 1/4/2016 from Education Services for January’s education subscription for $1,000. All of these invoices were unpaid as of 12/31/2015.

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