Sunshine is a local non-for-profit hospital. It provides mental health services to the community. It is a calendar year entity. In 2022, it had the following transactions:

a. $1,000,000 donation was received from a grateful patient for general use.

b. On April 1, 2022, Sunshine borrowed $5,000,000 from a local bank with a term of 10 year at 6%.

c. A new outpatient facility was constructed, which cost $4,000,000 with an estimated life of 20 years.

d. Operating expenses paid in 2022 was $2,000,000.

e. At the end of the year, Sunshine owes $400,000 for additional operating expense.

f. Sunshine billed insurance for services in the amount of $6,500,000.

g. Based on the contract agreement with the insurance company, Sunshine expected to collect 40% of what's billed.

h. 20 patients prepaid their sessions in the amount of $10,000. Services have not been rendered at the end of the year.

i. Sunshine recorded a year of depreciation.

j. Sunshine recorded accrued interest at December 31, 2022.

1. What is the extended accounting equation?

2. Use debit and credit to reflect each of the transaction using the template below.

3. What are the total assets, total liabilities, and net assets at the end of 2022?