Reference no: EM132809841

Prepare journal entries for the following transactions.

1. The Sunnyvale hospital has set aside $590,000 cash for future debt payment, as requested in the borrowing contract.
2. The hospital accrued $1,590,000 in patient service revenues. Charity services of $460,000 were also provided. Contractual adjustments total $580,000.
3. An increase of $54,000 was recorded for bad debts.
4. General services of $190,000 were donated by nurses. Normally, the hospital would have purchased these specialized services.
5. An endowment contribution of $1,590,000 was received.
6. Investments held by the hospital increased in fair value by $41,000.
7. The hospital purchased $846,000 in equipment with resources that had been contributed in prior years for such a purchase.

Required

Problem 1: 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.)