Question
Following are several unrelated transactions involving a hospital. The hospital has a contractual agreement with a lender requiring that $640,000 in cash be set aside
Following are several unrelated transactions involving a hospital.
- The hospital has a contractual agreement with a lender requiring that $640,000 in cash be set aside to meet its future debt payment.
- The hospital accrued $1,640,000 in patient service revenues. Charity services of $485,000 were also provided. Contractual adjustments total $605,000.
- An increase of $59,000 was recorded for bad debts.
- General services of $240,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
- An endowment contribution of $1,640,000 was received.
- Investments held by the hospital increased in fair value by $46,000.
- The hospital purchased $851,000 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- 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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The hospital has a contractual agreement with a lender requiring that $640,000 in cash be set aside to meet its future debt payment.
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The hospital accrued $1,640,000 in patient service revenues. Charity services of $485,000 were also provided. Contractual adjustments total $605,000.
-
An increase of $59,000 was recorded for bad debts.
-
General services of $240,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
-
An endowment contribution of $1,640,000 was received.
-
Investments held by the hospital increased in fair value by $46,000.
-
The hospital purchased $851,000 in equipment with resources that had been contributed in prior years for such a purchase.
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