12-10. Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2020, are summarized in the T-account. Page 376 BALANCE SHEET ACCOUNTS December 31, 2019 December 31, 2020 Debits Cash 1,000,000 $2,895,700 Patient Accounts Receivable (net) 1,210,000 592,800 Third-Party Accounts Receivable (net) 1,190,000 1,383,200 Contributions Receivable 10,000 12,500 Supplies Investments-Endowment 1,500,000 1,620,000 Property, Plant, and Equipment 4,875,000 5,182,000 Next Credits Accumulated Depreciation Accounts Payable (supplies) Long-Term Debt Net Assets or Net Position-December 31, 2019 Net Assets or Net Position-December 31, 2020 ACTIVITY ACCOUNTS Debits Contractual Adjustments Provision for Implicit Price Concessions Operating Expenses-Depreciation Operating Expenses-Salaries Operating Expenses-Supplies Reclassification from Net Assets with Donor Restrictions (time restrictions) Net Losses on Investments-Permanent Endowment 2,107,000 37,500 2,282,000 5,358,500 2,567,000 46,200 2,782,000 6,291,000 1,100,000 33,500 460,000 6,900,000 2,200,000 19,600 10,000 Credits Patient Service Revenue-(patient portion) Unrestricted Patient Service Revenue-(insurer portion) Unrestricted Income on Endowments-Unrestricted Reclassification to Unrestricted Net Assets Contribution Revenue-without Donor Restrictions Contribution Revenue-with Donor Restrictions (endowment) Contribution Revenue-with Donor Restrictions (Restricted for Future Years) Other Information: Sales of Property and Equipment Purchases of Property and Equipment Issuance of Long-Term Debt Excess Credits over Debits-Activity Accounts Beginning Net Assets or Net Position Ending Net Assets or Net Position 2015 3,156,000 7,364,000 25,000 19,600 36,000 130,000 25,000 none 307,000 600,000 32,500 5,358,500 5,391,000 CASH (2020) 1,000,000 Beginning balance 1/1 Collections from patients 3,739,700 6,900,000 Salaries Collections from third parties 6,070,800 2,191,300 Operating expenses Contributions to Endowment 130,000 Other Contributions 58,500 307,000 Equipment purchases Investment Income 25,000 100,000 Payment principal LT Debt Proceeds-LT debt 600,000 130,000 Purchase Endowment Investments Ending balance 12/31 1,995,700 The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were Page 377 sold. The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were Page 377 sold. Required: Using the information above and the Excel template provided, prepare a. A Statement of Operations and a Statement of Changes in Net Assets for the year ended December 31, 2020, assuming Monterey Hospital is a private not-for-profit. b. Statements of Cash Flow assuming 1. Monterey Hospital is a private not-for-profit. 2. Monterey Hospital is a government-owned hospital