PLEASE ONLY PREPARE APPLICABLE JOURNAL ENTRIES FOR EACH TRANSACTION. NO NEED to prepare a schedule calculating the changes in net assets as the question require.50. A local private not-for-profit health care entity (Rochester Medical) incurs the following transactions during the current year. a. The board of governors for Rochester Medical (RM) announces that ??$160,000in previously unrestricted cash will be used in the near future to acquire equipment. These funds are invested until the purchase eventually occurs. b.RM receives a donation of?(??$80,000??)in cash with the stipulation that the money be invested inU.S. government bonds. All subsequent income derived from this investment must be paid to supplement nursing salaries. c.RM spends ?(??$25,000??)in cash to acquire medicines. RM received this money during the previous year. The donor specified that it had tobe used for medicines. d.RM charges patients ?(??$2??) million. These amounts are the responsibility of government programs and insurance companies. These thirdparty payors will receive explicit price concessions because of long-standing contracts. Officials believe RM has an80 percent chance of receiving ?(??$1.5??) million and a20 percent chance of receiving ?(??$1.0??) million. RM has a policy of reporting the most likely outcome. e.RM charges a second group of patients ?(??$1??) million. These patients are not insured. RM sets implicit price concessions because of the high cost of health care. Officials believe RM has a70 percent chance of collecting ?(??$250,000??) and a30 percent chance of receiving ?(??$100,000??).As stated before, RM has a policy of reporting the most likely outcome. f.RM charges a third group of patients ?(??$600,000??). These patients have little orno income. The hospital administration chooses to view this work as charity care and make no attempt at collection. g. Depreciation expense for the year is?(??$110,000??).Of that amount, 70 percent relates to health care, 20 percent to administrative, and 10 percent to fundraising.h.RM receives interest income of $15,000on the investments acquired in(a).i. Based on past history, officials estimate that $50,000of the reported receivable amount from third-party payors will never be collected.Of the amount reported for uninsured patients who are expected to pay a portion of their debt, officials estimate that $20,000of thereported receivable amount will not be collected.j. The medicines in(c) are consumed through daily patient care.k.RM sells the investments in(a) for $172,000$25,000