Question
The hospital has a contractual agreement with a lender requiring that $700,000 in cash be set aside to meet its future debt payment. The hospital
The hospital has a contractual agreement with a lender requiring that $700,000 in cash be set aside to meet its future debt payment. The hospital accrued $1,700,000 in patient service revenues. Charity services of $515,000 also were provided. Contractual adjustments total $635,000. An increase of $65,000 was recorded for bad debts. Recently retired nurses volunteered to assist with a spike in patient demand due to an infectious disease outbreak. The value of these services was estimated to be $300,000, and the hospital normally would have purchased these specialized services. An endowment contribution of $1,700,000 was received. Investments held by the hospital increased in fair value by $52,000. The hospital purchased $857,000 in equipment with resources that had been contributed in prior years for such a purchase
Record the $700,000 cash receipt to be reinvested in investments to meet its future debt payment.
Record the $1,700,000 revenue accrued for patient services, $515,000 for Charity services and Contractual adjustments to receivables total $635,000.
Record the $65,000 increase in bad debts.
Record the $300,000 general services donated by technicians, which otherwise have to be purchased.
Record the $1,700,000 endowment contribution received.
Record the $52,000 increase in the fair value of investments held by the hospital.
Record the purchase of equipment with resources for $857,000.
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