Homework help needed please!

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Its simple enough, but i seriously dont get it! any help would be appreciated!

Goodwill Hosp provides you with the following info from its 20x2 gen ledger:

Rev and Expense Summ
________________________
899,204 | 964,382
65,178 |
_________________________
________________________

Assuming the Hospial net assets @ Dec 31, 20x1, were $516894, what were the hospital net assets at Dec 31, 20x2?
 

kirby

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One way to look at this is you've got four numbers and need to add or subtract two of them . How wrong can you go. :) what the problem wants is for you to see that the hospital earned $65,178 in 20x2. Then assume that this increase in equity is offset by an increase in assets for same amount. So answer is to add $65,178 to the 20x1 net assets and you are done.

Actually the problem is goofy. A for profit hospital could issue stock offset by an increase in assets . So the correct answer is "who knows" but anyway that's not what they are looking for.
 
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ty

Thanks... unfortunately this is an online class and the professor doesnt review problems in our discussion boards... so i never know if im doing things right! And the textbook is really confusing...

I seriously appreciate your help :)
 

kirby

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School , the book and the prof are supposed to HELP you learn, not confuse you. That is not happening. Maybe try some other school?
 

bklynboy

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Kirby - they are looking for net assets - not solely assets. Also, I read the 65,178 being a loss. Yo uare usually spot on so hopefully I am not misreading this,

They are asking for net assets (assets - liabs or equity). We know net assets at 20X1 is 516,894. In 20X2 they had a loss of 65,178 (as expenses are higher than revenue and also the 65,178 is a debit in the GL). Therefore, net assets at 20X2 is 451,716 (516,894 - 65,178).
 

kirby

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The entry in the problem above shown posted to clear income summary to zero was a debit of 65,718.
and that entire entry was
Dr Income Summary 65,718
CR Retained Earnings 65,718
So Retained Earnings increased cause we had income of 65,178, not a loss.
 
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kirby... I know! Im working on my Masters in Healthcare Administration. This is an online course. Its very frustrating! Im not stupid but sometimes reading the book doesnt quite cut it, esp when math is involved. Ill get through the course somehow Im sure!
 

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