Prepare journal entries for the following transactions. One set of journal entries assuming the business operates as not for profit facility and another set of journal entries assuming the business operates as a business type government facility.

1) The hospital has a contractual agreement with a lender requiring that $500,00 in cash be set aside to meet its future debt payment.

2) The hospital accrued $1,500,000 in patient service0 revenues. Charity services of $415,000 were also provided. Contractual adjustments total $535,000.

3) An increase of $45,000 was recorded for bad debts

4) General services of $100,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.

5) An endowment contribution of $1,500,000 was received.

Answer rating: 100% (QA)

Hospital Journal Profit Organization Transaction Dr Cr Cash Account Creditors Account Being a contra... View the full answer