Finance Quesiton

Prepare accounting entries in the table below for each of the transactions described in parts [a] – [e] for Deerfield Hospital - a non-profit organization with a December 31st year end.

Note that you will only need these accounts: Fixed Assets, Long-term Debt, Accum. Depreciation, Depreciation Expense, Salary Expense, Cash, Supplies Inventory, Accounts Payable, Routine Operating Expense, and Patient Revenue

[a] Received an invoice for an MRI machine on 12/31/2015 that was purchased on credit from Litton Company for $1,000,000. The machine was received 12/15/2015 and has a 5 year life. (2 pts)

Paid salaries for the month of December totaling $350,000 on the 31st of the month. (2 pts)

[c] Purchased patient supplies on 12/02/2015 totaling $3,000. The hospital received a 10% discount, so it paid the invoice on 12/12/2015. (2pts)

[d] A bill for $10,000 for patient linen services was received in December. The vendor will be paid next month. (2 pts)

[e] Patient services of $1,500,000 have been provided to insured patients in December however insurance will not pay any bills until January. (2 pts)