Following are several unrelated transactions involving a hospital The hospital has a contractual agreement with a lender requiring that $680,000 in cash be set aside to meet its future debt payment The hospital accrued $1,680,000 in patient service revenues Charity services of $505,000 were also provided Contractual adjustments total $625,000 An increase of $63,000 was recorded for bad debts General services of $280,000 were donated by technicians Normally, the hospital would have purchased these specialized services An endowment contribution of $1,680,000 was received Investments held by the hospital increased in fair value by $50,000 The hospital purchased $855,000 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 (If no entry is required for a transaction event, select No Journal Entry Required in the first account field ) b 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 )

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Posted on Sep 10, 2024

Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $680,000 in cash be set aside

Following are several unrelated transactions involving a hospital.

The hospital has a contractual agreement with a lender requiring that $680,000 in cash be set aside to meet its future debt payment.
The hospital accrued $1,680,000 in patient service revenues. Charity services of $505,000 were also provided. Contractual adjustments total $625,000.
An increase of $63,000 was recorded for bad debts.
General services of $280,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
An endowment contribution of $1,680,000 was received.
Investments held by the hospital increased in fair value by $50,000.
The hospital purchased $855,000 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

b. 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.)