Question
Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $590,000 in cash be set aside
Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $590,000 in cash be set aside to meet its future debt payment. The hospital accrued $1,590,000 in patient service revenues. Charity services of $460,000 were also provided. Contractual adjustments total $580,000. An increase of $54,000 was recorded for bad debts. General services of $190,000 were donated by technicians. Normally, the hospital would have purchased these specialized services. An endowment contribution of $1,590,000 was received. Investments held by the hospital increased in fair value by $41,000. The hospital purchased $846,000 in equipment with resources that had been contributed in prior years for such a purchase. Required 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.
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