1.

5. Record the adjustment required in the net assets released from restrictions account.

Record in general journal form the following selected transactions for Avalon General Hospital, a nongovernmental not-for-profit institution. (If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Gross charges for patient services rendered during the period amounted to $7, 870,000, of which $350,000 represented charity care for indigent patients. During the year the provision for bad debts was set at $190,000 and contractual adjustments amounted to $435,000. A wealthy donor donated $2,000,000 to construct a new cardiology wing on the hospital. During the year, the new cardiology wing (see item 3) was one-half completed at a cost of $1,000,000