Following are several unrelated transactions involving a hospital. 1. The hospital has a contractual agreement with a lender requiring that $650,000 in cash be set aside to meet its future debt payment. 2. The hospital accrued $2,500,000 in patient service revenues. Charity services of $520,000 also were provided. 3. Contractual adjustments totaled $800,000. In addition, the hospital estimated implicit price concessions for individual payors to be $250,000. 4. General services of $100,000 were donated by technicians. Normally, the hospital would have purchased these specialized services. 5. An endowment contribution of $3,000,000 was received. 6. Investments held by the hospital increased in fair value by $75,000. 7. The hospital purchased $625,000 in equipment with resources that had been contributed in prior years for such a purchase. Required a. 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.) View transaction list Journal entry worksheet > B C D E F G H Record the $800,000 contractual adjustments and $250,000 estimated implicit price concessions for individual payors. Note: Enter debits before credits. Transaction 03 General Journal Debit Credit
Following are several unrelated transactions involving a hospital. 1. The hospital has a contractual agreement with a lender requiring that $650,000 in cash be set aside to meet its future debt payment. 2. The hospital accrued $2,500,000 in patient service revenues. Charity services of $520,000 also were provided. 3. Contractual adjustments totaled $800,000. In addition, the hospital estimated implicit price concessions for individual payors to be $250,000. 4. General services of $100,000 were donated by technicians. Normally, the hospital would have purchased these specialized services. 5. An endowment contribution of $3,000,000 was received. 6. Investments held by the hospital increased in fair value by $75,000. 7. The hospital purchased $625,000 in equipment with resources that had been contributed in prior years for such a purchase. Required a. 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.) View transaction list Journal entry worksheet > B C D E F G H Record the $800,000 contractual adjustments and $250,000 estimated implicit price concessions for individual payors. Note: Enter debits before credits. Transaction 03 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Transcribed Image Text:Following are several unrelated transactions involving a hospital.
1. The hospital has a contractual agreement with a lender requiring that $650,000 in cash be set aside to meet its future debt
payment.
2. The hospital accrued $2,500,000 in patient service revenues. Charity services of $520,000 also were provided.
3. Contractual adjustments totaled $800,000. In addition, the hospital estimated implicit price concessions for individual payors to be
$250,000.
4. General services of $100,000 were donated by technicians. Normally, the hospital would have purchased these specialized
services.
5. An endowment contribution of $3,000,000 was received.
6. Investments held by the hospital increased in fair value by $75,000.
7. The hospital purchased $625,000 in equipment with resources that had been contributed in prior years for such a purchase.
Required
a. 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.)
View transaction list
Journal entry worksheet
>
B
C D E F G H
Record the $800,000 contractual adjustments and $250,000 estimated implicit
price concessions for individual payors.
Note: Enter debits before credits.
Transaction
03
General Journal
Debit
Credit
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