Reference no: EM133079107

Question - Following are several unrelated transactions involving a hospital.

1. The hospital has a contractual agreement with a lender requiring that $560,000 in cash be set aside to meet its future debt payment.

2. The hospital accrued $1,560,000 in patient service revenues. Charity services of $445,000 were also provided. Contractual adjustments total $565,000.

3. An increase of $51,000 was recorded for bad debts.

4. General services of $160,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.

5. An endowment contribution of $1,560,000 was received.

6. Investments held by the hospital increased in fair value by $38,000.

7. The hospital purchased $843,000 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 business-type government facility.