Following are several unrelated transactions involving a hospital.

1.	The hospital has a contractual agreement with a lender requiring that $600,000 in cash be set aside to meet its future debt payment.
2.	The hospital accrued $1,600,000 in patient service revenues. Charity services of $465,000 were also provided. Contractual adjustments total $585,000.
3.	An increase of $55,000 was recorded for bad debts.
4.	General services of $200,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
5.	An endowment contribution of $1,600,000 was received.
6.	Investments held by the hospital increased in fair value by $42,000.
7.	The hospital purchased $847,000 in equipment with resources that had been contributed in prior years for such a purchase.

a)Prepare journal entries to record the foregoing transactions, assuming the hospital is a not-for-profit facility.

b)Prepare journal entries to record the foregoing transactions, assuming the hospital is a business-type government facility.