Accounting for Health Care Organization and I am working on journal entries for a hospital that is a business-type government facility.
My question is:
1) The hospital has a contractual agreement with a lender requiring that $500,000 in cash be set aside to meet its future debt payment.
2) The hospital accrued $1,500,000 in patient service revenues. Charity services of $415,000 were also provided. Contractual adjustments total $535,000.
Prepare the journal entries to record the foregoing transactions, assuming the hospital is a business type government facility.