Listed Below Are Selected Transactions from the City of Watertown $\underline{\text{ Transactions: }}$

question 32

Essay

Listed below are selected transactions from the City of Watertown Hospital. All amounts are in thousands of dollars.

$\underline{\text{ Transactions: }}$
1. The hospital provided patient services during the year that had standard charges of $12,500. Contractual adjustments awarded to patients under contracts with insurance companies and under government programs totaled $2,000. Uncollectible accounts are expected to be approximately $800.
2. Nursing and other professional salaries paid during the year totaled $2,300.
3. Depreciation for the year was $500 for the building and $900 for equipment.
4. Medical supplies costing $2,600 were purchased during the year. The inventory of supplies increased from $200 at the beginning of the year to $300 at year end.
5. The hospital received a $4,000 to be used for the purchase of specialized diagnostic equipment.
6. The hospital received a $500 gift to be used for providing specialized coronary care services to patients.
7. The hospital purchased $2,000 of diagnostic equipment with the donation received for that purpose.
8. The hospital incurred $400 of operating expenses for the care of coronary patients consistent with the purposes of that donation.
9. The hospital issued $5,000 of 20-year, 8% bonds at par at mid-year to finance a new addition for the hospital.
10. The hospital estimates that malpractice claims against the hospital of $400 ultimately will result in liabilities of $100 that will have to be paid-but probably will not have to be paid during the next fiscal year.

$\underline{\text{ Requirement: }}$ Prepare the journal entries required of a government hospital for these transactions.

---

Definitions:

Low Distinctiveness

A characteristic of an action where it is not unique to a specific situation but occurs in many different contexts.

Emotionally Salient

Refers to events, information, or stimuli that have a strong emotional impact or significance to an individual.

Goal Relevant

Pertaining to or directly associated with the objectives one is trying to achieve.

Actively Rehearsed

The conscious and intentional practice or repetition of information, skills, or activities to improve or maintain proficiency.