Comprehensive set of journal entries and financial statements Cort Hospital was established as a nonprofit organization on january 1 to take over the assets of an eosting hospital it had the following transactons dorngitigalentiy fisceljear 1. The hospital sold revenue bonds in the amount of 590.0 million. The hospital received $76.0 millon in cash from sale of the bonds. To provide security for payment of the debt service. the other 34.0 million was deposited in an escrow account with a trustee. The trustee immed ately invested the cash in U.S. Treasury bith. 2. The physical assets of the existing hospital were purchased for 570.0 million in cash The dppraised values of the assets were as follows: land - 56.0 million, buldings- 356.0millom and equipment -58.0 million. 3. The hospiral provided services of $40.0 million at its establithed rates to Medicare. patients. Its agreement with Medicare peovided for controctual adjustments of 25 percent againt the established rotes By year-end, the hospitai had collected 525.0 million against the bulings 4. The hospltol provided services of 120.0 million at is elablshed rotes to pabents insured by a mind patty payer. Its agreement with the third party prowded forcontractual adjustments of 15 percent from the estabished rates if abig prowided for a retrospective adjutryenc, bosed on a coul the entire dmount thot t was owed by the thicd-party phaver. When it prepared its finansial statetment, the hospital estimated that it owed the third party a 60,000 but the final setieneot had rior yet heen hegothated. for theserervices. 6. The hospital provided care to charity patients amounting to $4,0 million at its established billing rates. it estimated the direct and indirect costs of that care to be 52.8 million. 7. The hospital provided care to self-pay patients in the amount of $10.0 million at its establishied rates. The hospital collected $4.0 million against these billings. At year end, the hospital recemed specific adverse information about the ability of self-pay patients' financial condition which indicates they will not be able to pay 35 percent of the remaining amounts due. 8. The hospitai had the following functional expenses. Of the amounts shown 558.0 m llion was paid in cash. (Depreciation expense on the buliding and the equipment ( $2.8 million and $1.2mi. respectively, was included in the functional categories.) 9. The hospital paid debt service of 58.0 miflon on its bonds (532 millon in amortization of principa) and 54.8 million in interest). it also made a year end purnal entry reclas3ifyigg 53.2milliob of longterm debt as current. 10. The hospital recorded acerued expenses at yearend as folows: Hath care swericos 54.0im ion Remingreive expegges 51.4minht The haspital paid s2.0 milliontor a clainis-made policy ter medsal mulpedcice insurance, Aigense to the health care serikesfanciand 12. The hospital received a check from the trustee for $200,000, representing earnings on the investment made by the trustee with the escrow money. The investment income is avallable for the hospital's general operations. 13. The hospital received equity securities from a donor who specified that the securitles, rogether with any eamings thereon, be used for the purpose of upgrading the hospital bulldings. The securities had o fair value of $500,000 when the donor made the gift. During the year, the hospital recelved dividends of $20,000 on the securities. At year-end, when the hospital prepared its. financial statements, the securities had a farr value of $540,000. (Assume the hospitals acrounting policy provides for recording realized and unrealized gains and losses on restricted net assets in a single account.) 14. During 2019, the hospital created Cort Hospital Foundation, whose sole purpose is to obtain donations for the hospital. At yeariend, the foundation advised the hospital that is had received cash donations of $600,000. Of this amount, st 00,000dd not contsin donor restrictions and 3500,000 was restricted for upgradirg the hospitals equipment: Ar the hospitals request, the foundition sent to the hospital the entire s100,000 of cash received trem coneributlons without donor restrictions. o) Prepart the necestary ournal entries to recoed these transactions, If no entry is necessary, select 'No debit (or credit) entry needed in the account fields and enter 0 in the amount fields. 48. To record revenuer from thires, Rarty ingwiced ostifnts. 7a. To record services provided to self-pay_patients. 7b. To record cash collected from self-pay patients. Provision for contractual adjustments Allowance for uncollectible accounts 7c. To record estimate of uncollectible self-pay_patient receivables. Health care services expenses Dietary services expenses Maintenance expenses Administrative expenses Accumulated depreciation, buildings Accumulated depreciation, equipment Cash 8. To record operating expenses. 92. To record long-term debt repayment. 96. To record reclassification of current portion of Revenue bonds, payable. Heaith care services expenses Administrative expenses Accrued expenses payable 10. To record operating expenses unpaid at year end. b) Prepare a statement of operations for 2019. c) Prepare a statement of changes in ner assets for 2019 Enter all contra asset amounts as positive numbers. Balance Sheet ASSETS December 31, 2019 Current: Current: Accrued expenses payable Claims payable Current portion of bonds payable Estimated third party settlements Total current liabilities 73F Mostly cloudy You have correctly selected 37. Comprehensive set of journal entries and financial statements Cort Hospital was established as a nonprofit organization on january 1 to take over the assets of an eosting hospital it had the following transactons dorngitigalentiy fisceljear 1. The hospital sold revenue bonds in the amount of 590.0 million. The hospital received $76.0 millon in cash from sale of the bonds. To provide security for payment of the debt service. the other 34.0 million was deposited in an escrow account with a trustee. The trustee immed ately invested the cash in U.S. Treasury bith. 2. The physical assets of the existing hospital were purchased for 570.0 million in cash The dppraised values of the assets were as follows: land - 56.0 million, buldings- 356.0millom and equipment -58.0 million. 3. The hospiral provided services of $40.0 million at its establithed rates to Medicare. patients. Its agreement with Medicare peovided for controctual adjustments of 25 percent againt the established rotes By year-end, the hospitai had collected 525.0 million against the bulings 4. The hospltol provided services of 120.0 million at is elablshed rotes to pabents insured by a mind patty payer. Its agreement with the third party prowded forcontractual adjustments of 15 percent from the estabished rates if abig prowided for a retrospective adjutryenc, bosed on a coul the entire dmount thot t was owed by the thicd-party phaver. When it prepared its finansial statetment, the hospital estimated that it owed the third party a 60,000 but the final setieneot had rior yet heen hegothated. for theserervices. 6. The hospital provided care to charity patients amounting to $4,0 million at its established billing rates. it estimated the direct and indirect costs of that care to be 52.8 million. 7. The hospital provided care to self-pay patients in the amount of $10.0 million at its establishied rates. The hospital collected $4.0 million against these billings. At year end, the hospital recemed specific adverse information about the ability of self-pay patients' financial condition which indicates they will not be able to pay 35 percent of the remaining amounts due. 8. The hospitai had the following functional expenses. Of the amounts shown 558.0 m llion was paid in cash. (Depreciation expense on the buliding and the equipment ( $2.8 million and $1.2mi. respectively, was included in the functional categories.) 9. The hospital paid debt service of 58.0 miflon on its bonds (532 millon in amortization of principa) and 54.8 million in interest). it also made a year end purnal entry reclas3ifyigg 53.2milliob of longterm debt as current. 10. The hospital recorded acerued expenses at yearend as folows: Hath care swericos 54.0im ion Remingreive expegges 51.4minht The haspital paid s2.0 milliontor a clainis-made policy ter medsal mulpedcice insurance, Aigense to the health care serikesfanciand 12. The hospital received a check from the trustee for $200,000, representing earnings on the investment made by the trustee with the escrow money. The investment income is avallable for the hospital's general operations. 13. The hospital received equity securities from a donor who specified that the securitles, rogether with any eamings thereon, be used for the purpose of upgrading the hospital bulldings. The securities had o fair value of $500,000 when the donor made the gift. During the year, the hospital recelved dividends of $20,000 on the securities. At year-end, when the hospital prepared its. financial statements, the securities had a farr value of $540,000. (Assume the hospitals acrounting policy provides for recording realized and unrealized gains and losses on restricted net assets in a single account.) 14. During 2019, the hospital created Cort Hospital Foundation, whose sole purpose is to obtain donations for the hospital. At yeariend, the foundation advised the hospital that is had received cash donations of $600,000. Of this amount, st 00,000dd not contsin donor restrictions and 3500,000 was restricted for upgradirg the hospitals equipment: Ar the hospitals request, the foundition sent to the hospital the entire s100,000 of cash received trem coneributlons without donor restrictions. o) Prepart the necestary ournal entries to recoed these transactions, If no entry is necessary, select 'No debit (or credit) entry needed in the account fields and enter 0 in the amount fields. 48. To record revenuer from thires, Rarty ingwiced ostifnts. 7a. To record services provided to self-pay_patients. 7b. To record cash collected from self-pay patients. Provision for contractual adjustments Allowance for uncollectible accounts 7c. To record estimate of uncollectible self-pay_patient receivables. Health care services expenses Dietary services expenses Maintenance expenses Administrative expenses Accumulated depreciation, buildings Accumulated depreciation, equipment Cash 8. To record operating expenses. 92. To record long-term debt repayment. 96. To record reclassification of current portion of Revenue bonds, payable. Heaith care services expenses Administrative expenses Accrued expenses payable 10. To record operating expenses unpaid at year end. b) Prepare a statement of operations for 2019. c) Prepare a statement of changes in ner assets for 2019 Enter all contra asset amounts as positive numbers. Balance Sheet ASSETS December 31, 2019 Current: Current: Accrued expenses payable Claims payable Current portion of bonds payable Estimated third party settlements Total current liabilities 73F Mostly cloudy You have correctly selected 37