Reference no: EM132793819

Question - 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 - Prepare journal entries to record the foregoing transactions, assuming the hospital is a business-type government facility.