1. The hospital has a contractual agreement with a lender requiring that $570,000 in cash be set...
Question:
1. The hospital has a contractual agreement with a lender requiring that $570,000 in cash be set aside to meet its future debt
payment.
2. The hospital accrued $1,570,000 in patient service revenues. Charity services of $450,000 also were provided.
Contractual adjustments total $570,000.
3. An increase of $52.000 was recorded for bad debts.
4. Recently retired nurses volunteered to assist with a spike in patient demand due to an infectious disease outbreak. The
value of these services was estimated to be $170,000, and the hospital normally would have purchased these specialized
services.
5. An endowment contribution of $1,570,000 was received.
6. Investments held by the hospital increased in fair value by $39,000.
7. The hospital purchased $844,000 in equipment with resources that had been contributed in prior years for such a
purchase.
Required
a. Prepare journal entries to record the foregoing transactions, assuming the hospital is a business-type government facility.
(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng