Non-Profit Organization Activities
Deadline: May 5, 2022 (Thursday) @ 11:59 PM
PROBLEM 1
Santa Maria Hospital is a non-profit organization locatesd in Bulacan. Given below are the
transactions and events of its General Fund for October 20x1:
• Gross Patient service revenues of P80,000 were billed to patients. Indigent charity care
amounted to P4,000, of which P2,500 was a receivable from Social Medicare of P6,000
and doubtful accounts of P8,000.
• Contributed services approximating P10,000 at going salary rates were received from
volunteer nurses. Meals costing P200 were served to the volunteer nurses at no charge
by the Santa Maria Hospital Cafeteria.
• New unrestricted pledges due in three months, totaling P5,000, were received from
various donors. Collections on pledges amounted to P3,500, and the provision for
doubtful pledges for the month was P800.
• The amount of P3,000 received from the Restricted Fund was expended for new surgical
equipment, as authorized by the donor.
Prepare the journal entries for the transactions of Santa Maria Hospital for October.
PROBLEM 2
The following events occurred to the Cancer Research Foundation during the fiscal year ended
June 30, 20x1:
1. Unrestricted pledges for P300,000 were received. It is estimated that 10% will not be
collectible.
2. P260,000 was collected on pledges. It is estimated that another P10,000 will be collected next
year.
3. Received P40,000 from Manila Bulletin. The amount was net of P5,000 for fund-raising
expenses.
4. Invested P35,000 in certificates of deposit. During the year, it collected P2,000 of interest. At
year-end, the accrued interest amounted to P1,000.
5. Collected P5,000 in cash for sales of booklet “How to Cope with Cancer”
6. Expenses paid in cash during the year were as follows:
