During 2017, the following selected events and transactions were recorded by Milos County Hospital.

1. Gross charges for hospital services, all charged to accounts and notes receivable, were as follows:

Patient service revenues.............................................................. $1,664,900

2. The hospital cafeteria and gift shop had cash sales of $295,300.

3. Additional information determined subsequently to recording patient service revenues and relating to the current-year is as follows:

Contractual adjustments.............................................................. $632,000

Provision for bad debts............................................................... 30,200

Charity care............................................................................. 261,400

4. A federal cost reimbursement research grant of $350,000 was awarded. As of the end of the year, $200,000 in expenses related to the grant had been made

5. Vouchers totaling $1,326,540 were issued for the following items:

Fiscal and administrative services expenses........................................ $194,440

General services expenses............................................................ 253,100

Nursing services expenses............................................................ 585,000

Other professional services expenses................................................ 185,600

Inventory................................................................................ 101,200

Expenses accrued at December 31, 2017............................................ 7,200

6. Collections of accounts receivable totaled $1,159,000. Accounts writtenoff as uncollectible amounted to $11,900.

7. Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1,031,200.

8. Supplies of $99,770 were issued to nursing services.

9. On December 31, 2017, accrued interest income on investments was $800.

10. Depreciation of buildings and equipment was as follows:

Buildings........................... $51,000

Equipment.......................... 73,000

11. On December 31, 2017, closing entries were made in the general journal.

Required

a. Show in general journal form the entries that should be made for each of the transactions and the closing entries in accordance with the standards for a governmental health care entity that follows proprietary fund accounting, as discussed in this chapter and Chapter 7.

b. Using the available information, calculate the net patient service revenue that would be reported on the statement of revenues, expenses, and changes in net position.