Goodness Hospital's general ledger contains the following unadjusted account balances, among others, at December 31, 20X1:
Acct No.
104. Accounts receivable = $ 850,000
105. Allowance for uncollectible accounts -0-
120. Land = 25,000
130. Buildings = 3,000,000
131. Accumulated depreciation--buildings -0-
140. Equipment = 1,800,000
141. Accumulated depreciation-equipment -0-
501. Contractual adjustments -0-
502. Charity care adjustments -0-
607. Depreciation expense -0-
609. Bad debt expense -0-
The following additional information is available:
1. Of the December 31, 20X1, accounts receivable, it is estimated that 15 percent will prove to be uncollectible due to these factors:
Contractual adjustments, 6% Charity care adjustments, 4%
Bad debt expense, 5%
2. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and an expected salvage value of $200,000.
3. Equipment, which cost $1,500,000, was acquired on January 1, 20X1. Additional equipment was acquired on July 1, 20X1, for $300,000. All equipment has a 20 percent salvage value and an estimated useful life of ten years.
Required: Prepare, in general journal form, all necessary adjusting
entries at December 31, 20X1.