During 2017, the following transactions were recorded by thePort Hudson Community Hospital, a private sector not-for-profitinstitution.
1. Gross charges for patient services, all charged to PatientAccounts Receivable, amounted to $1,850,000. Contractualadjustments with third-party payers amounted to $500,000.
2. Charity services, not included in transaction 1, would amountto $76,000, had billings been made at gross amounts.
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3. Other revenues, received in cash, were parking lot, $25,000;cafeteria, $42,500; gift shop, $7,500.
4. Cash gifts for cancer research amounted to $30,250 for theyear. During the year, $59,000 was expended for cancer researchtechniciansâ€™ salaries (debit Operating Expenseâ€”Salaries andBenefits).
5. Mortgage bond payments amounted to $58,000 for principal and$34,000 for interest. Assume unrestricted resources are used.
6. During the year, the hospital received, in cash, unrestrictedcontributions of $49,000 and unrestricted income of $41,250 fromendowment investments. (It is the hospitalâ€™s practice to treatunrestricted gifts as nonoperating income.)
7. New equipment, costing $162,000, was acquired usingdonor-restricted cash that was on hand at the beginning of theyear. Port Hudsonâ€™s policy is to record all equipment in theunrestricted net asset class.
8.An old piece of lab equipment that originally cost $100,000and that had an undepreciated cost of $20,000 was sold for $12,000cash.
9. At the end of 2017, pledges received in the amount of$145,000 were intended to be paid and used for unrestrictedpurposes in 2018.
10. Cash contributions were received as follows: temporarilyrestricted for purposes other than plant, $46,250; temporarilyrestricted for plant acquisition, $140,000.
11. Bills totaling $229,500 were received for the followingitems:
12. Depreciation of plant and equipment amounted to$195,000.
13 Cash payments on vouchers payable amounted to $181,500.Another $811,500 was expended on wages and benefits. Cashcollections of patient accounts receivable amounted to$1,190,000.
14. Closing entries were prepared.
a. Record the transactions in the general journalof the Port Hudson Community Hospital.
b. Prepare a Statement of Operations for the PortHudson Community Hospital for the year ended December 31, 2017.