Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $500,000
The hospital has a contractual agreement with a lender requiring that $500,000 in cash be set aside to meet its future debt payment.
The hospital accrued $1,500,000 in patient service revenues. Charity services of $415,000 were also provided. Contractual adjustments total $535,000.
An increase of $45,000 was recorded for bad debts.
General services of $100,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
An endowment contribution of $1,500,000 was received.
Investments held by the hospital increased in fair value by $32,000.
The hospital purchased $837,000 in equipment with resources that had been contributed in prior years for such a purchase.
Prepare journal entries to record the foregoing transactions, assuming the hospital is a not-for-profit facility.
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Question Posted: March 24, 2017 00:55:42