| 1. Metro Hospital is required to maintain a sinking fund as a condition of bond contracts. Metro Hospital is obligated to transfer $250,000 to the sinking fund on June 1. On June 1, Metro transfers $200,000 cash from the general fund to the sinking fund. Metro uses full accrual accounting. Indicate how this transaction will impact the fundamental accounting equation for both the general fund and the sinking fund. Clearly, label the affected accounts.
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