P 22-3 Statement of operations—Nongovernmental not-for-profit health care organization The following selected items were taken from the accounts of Hometown Memorial Hospital, a not-forprofit hospital, at December 31, 2016:

Debits Administrative services $310,000 Contractual allowances 400,000 Depreciation 200,000 Employee discounts 100,000 General services 290,000 Loss on sale of assets 50,000 Nursing services 1,000,000 Other professional services 500,000 Provision for bad debts 150,000 Credits Donated medicine 300,000 Income from investment in affiliate 80,000 Patient service revenues 2,500,000 Television rentals to patients 50,000 Unrestricted donations 200,000 Unrestricted income from investments of endowment funds 270,000 Restricted donations for fixed asset purchases 300,000 Restricted donations for specific operating purposes 100,000 Accounting for Not-for-Profit Organizations 771 R E Q u I R E D : Use the information given to prepare a statement of operations for Hometown Memorial Hospital for the year ending December 31, 2016. Assume that $80,000 of expenses were for purposes for which restricted donations were available and that fixed assets costing $97,000 were purchased from donations restricted for their purchase.