Prepare journal entries to record the following transactions of a nonprofit hospital:

1. The hospital billed its uninsured patients for $250,000. Based on historical experience, it expects to collect 45 percent of that amount over time.
2. Nurses and doctors employed by the hospital were paid their salaries, $100,000.
3. The chief administrative officer was paid her salary of $10,000.
4. The hospital paid its utility bill, $5,000.

(Transactions 5 - 8 immediately follow.)

If a transaction does not require a journal entry, select No entry as your answers and leave the Debit and Credit answers blank (zero).

Ref.	Description	Debit	Credit
1		Answer	Answer
		Answer	Answer
	To record gross patient service revenue.
		Answer	Answer
		Answer	Answer
	To record an adjustment for the estimated uncollectible amount.
2		Answer	Answer
		Answer	Answer
3		Answer	Answer
		Answer	Answer
4		Answer	Answer
		Answer	Answer

Prepare journal entries to record the following transactions of a nonprofit hospital:

5. Depreciation on the equipment was $34,000.

6. Several adults donated their time (worth $5,000) selling merchandise in the hospital gift shop.

7. The hospital billed Medicare $100,000 for services provided at its established rates. The prospective billing arrangement gives Medicare a 40 percent discount from these rates.

8. An unrestricted donation of $4,000 was received.

If a transaction does not require a journal entry, select No entry as your answers and leave the Debit and Credit answers blank (zero).

Ref.	Description	Debit	Credit
5		Answer	Answer
		Answer	Answer
6		Answer	Answer
		Answer	Answer
7		Answer	Answer
		Answer	Answer
	To record gross patient service revenue.
		Answer	Answer
		Answer	Answer
	To record an adjustment based on the prospective billing arrangement.
8		Answer	Answer
		Answer