During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for- profit institution: 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,820,000. Estimated contractual adjustments with third-party payors amounted to $485,000 and the Hospital estimated implicit price concessions would total $12,000. 2. Charity services, not included in transaction 1, would amount to $70,000, had billings been made at gross amounts. 3. Other revenues, received in cash, were parking lot, $22,000; cafeteria, $38,000; gift shop, $6,000. 4. Cash gifts restricted by the donor for programs amounted to $27,700 for the year. During the year, $53,600 was expended for technician salaries supporting the program identified by the donor (debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $53,200 for principal and $30,400 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $44,800 and unrestricted income of $37,500 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating income.) 7. New equipment, costing $156,000, was acquired, using donor-restricted cash that was on hand at the beginning of the year. 8. An old piece of lab equipment that originally cost $70,000 and that had an undepreciated cost of $14,000 was sold for $9,000 cash. 9. At the end of 2020, pledges (restricted as to purpose) were received in the amount of $130,000. These are intended to be received and expended in 2021. 10. Cash contributions were received from donors restricted for plant acquisition, $176,500. 11. Bills were received for the following items: Utilities $141,600 and Insurance $81,600. These will be paid in January of 2021. 12. Depreciation of plant and equipment amounted to $186,000. 13. Cash payments on accounts payable amounted to $173,400. Another $804,600 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,184,000. These were in settlement of patient accounts totaling $1,597,000. Contractual adjustments associated with these totaled $404,000 and price concessions totaled $9,000. 15. Closing entries were prepared. Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital. b. Prepare a Statement of Operations for the Port Hudson Community Hospital for the year ended December 31, 2020. c. Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2020. Assume beginning net assets are $7,030,000. No Transaction Credit General Journal Patient Accounts Receivable Operating Revenue-Without Donor Restrictions- Debit 1,820,000 1,820,000 2 1L Contractual Adjustments Allowance for Contractual Adjustments Provision for Implicit Price Concessions Allowance for Implicit Price Concessions oss osos os 4 02 No Journal Entry Required 503 Cash Operating Revenue-Without Donor RestrictionsOtr 6 4a Cash Revenues-With Donor Restrictions-Contributions Operating Expense Salaries and Benefits Cash Reclassifications from Net Assets With Donor Restrictis Reclassifications to Net Assets Without Donor Restrict 9 05 Operating Expense Interest Mortgage Bonds Payable Cash soos 0106 Cash Nonoperating Income-Without Donor Restrictionsas Nonoperating Income-Without Donor Restrictions- | 7a 156,000 Equipment Cash 156,000 7b Reclassifications from Net Assets With Donor Restrict Reclassifications to Net Assets Without Donor Restrict 13T08 Cash Accumulated Depreciation Equipment Loss on Sale of Equipment-Unrestricted Equipment 09 Contributions Receivable Revenues-With Donor Restrictions Contributions os os bos os os osos s 15 Cash RevenuesWith Donor RestrictionsContributions 16 11 Operating Expense-Utilities Operating Expense Insurance Accounts Payable 17 - 12 Operating Expense Depreciation Accumulated Depreciation Equipment 13a Accounts Payable Cash 2014 Cash Allowance for Contractual Adjustments Allowance for Implicit Price Concessions Patient Accounts Receivable ssss 21 152 Operating Revenue-Without Donor RestrictionsPa Operating Revenue-Without Donor Restrictions Oth Nonoperating Income-Without Donor Restrictions- Nonoperating Income-Without Donor RestrictionsIO Reclassifications to Net Assets Without Donor Restrict Reclassifications to Net Assets Without Donor Restrict Contractual Adjustments Provision for Implicit Price Concessions Loss on Sale of Equipment-Unrestricted Operating Expense Depreciation Operating ExpenseSalaries and Benefits Operating Expense-Utilities Operating Expense-Insurance Operating Expense Interest Net Assets Without Donor Restrictions sssssssss 22 15b Revenues With Donor Restrictions Contributions Reclassifications from Net Assets With Donor Restricts Reclassifications from Net Assets With Donor Restricts Net Assets With Donor Restrictions PORT HUDSON COMMUNITY HOSPITAL For the Year Ended December 31, 2020 Revenues Without Donor Restrictions: Patient Service RevenuesNet of Contractual Adjustments Other Operating Revenues Total Revenues Net Assets Released From Restrictions: Satisfaction of Program Restrictions Total Operating Revenues Operating Expenses: Salaries and Benefits Utilities Insurance Depreciation Total Operating Expenses Operating Income Other Income: Unrestricted Gifts and Bequests Income on Endowment Investments Total Other Income Excess of Revenues Over Expenses Net Assets Released from Restrictions: Satisfaction of Capital Acquisition Restrictions Loss on Sale of Equipment $ PORT HUDSON COMMUNITY HOSPITAL Statement of Changes in Net Assets For the Year Ended December 31, 2020 Net Assets without Donor Restrictions: Excess of Revenues Over Expenses Net Assets Released From Restrictions: Satisfaction of Capital Acquisition Restrictions Loss on Sale of Equipment Increase in Net Assets without Donor Restrictions o Net Assets with Donor Restrictions: Contribution Revenue Net Assets Released From Restrictions SOS Increase in Net Assets with Donor Restrictions Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year 0 During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for- profit institution: 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,820,000. Estimated contractual adjustments with third-party payors amounted to $485,000 and the Hospital estimated implicit price concessions would total $12,000. 2. Charity services, not included in transaction 1, would amount to $70,000, had billings been made at gross amounts. 3. Other revenues, received in cash, were parking lot, $22,000; cafeteria, $38,000; gift shop, $6,000. 4. Cash gifts restricted by the donor for programs amounted to $27,700 for the year. During the year, $53,600 was expended for technician salaries supporting the program identified by the donor (debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $53,200 for principal and $30,400 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $44,800 and unrestricted income of $37,500 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating income.) 7. New equipment, costing $156,000, was acquired, using donor-restricted cash that was on hand at the beginning of the year. 8. An old piece of lab equipment that originally cost $70,000 and that had an undepreciated cost of $14,000 was sold for $9,000 cash. 9. At the end of 2020, pledges (restricted as to purpose) were received in the amount of $130,000. These are intended to be received and expended in 2021. 10. Cash contributions were received from donors restricted for plant acquisition, $176,500. 11. Bills were received for the following items: Utilities $141,600 and Insurance $81,600. These will be paid in January of 2021. 12. Depreciation of plant and equipment amounted to $186,000. 13. Cash payments on accounts payable amounted to $173,400. Another $804,600 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,184,000. These were in settlement of patient accounts totaling $1,597,000. Contractual adjustments associated with these totaled $404,000 and price concessions totaled $9,000. 15. Closing entries were prepared. Required: a. Record the transactions in the general journal of the Port Hudson Community Hospital. b. Prepare a Statement of Operations for the Port Hudson Community Hospital for the year ended December 31, 2020. c. Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for the year ended December 31, 2020. Assume beginning net assets are $7,030,000. No Transaction Credit General Journal Patient Accounts Receivable Operating Revenue-Without Donor Restrictions- Debit 1,820,000 1,820,000 2 1L Contractual Adjustments Allowance for Contractual Adjustments Provision for Implicit Price Concessions Allowance for Implicit Price Concessions oss osos os 4 02 No Journal Entry Required 503 Cash Operating Revenue-Without Donor RestrictionsOtr 6 4a Cash Revenues-With Donor Restrictions-Contributions Operating Expense Salaries and Benefits Cash Reclassifications from Net Assets With Donor Restrictis Reclassifications to Net Assets Without Donor Restrict 9 05 Operating Expense Interest Mortgage Bonds Payable Cash soos 0106 Cash Nonoperating Income-Without Donor Restrictionsas Nonoperating Income-Without Donor Restrictions- | 7a 156,000 Equipment Cash 156,000 7b Reclassifications from Net Assets With Donor Restrict Reclassifications to Net Assets Without Donor Restrict 13T08 Cash Accumulated Depreciation Equipment Loss on Sale of Equipment-Unrestricted Equipment 09 Contributions Receivable Revenues-With Donor Restrictions Contributions os os bos os os osos s 15 Cash RevenuesWith Donor RestrictionsContributions 16 11 Operating Expense-Utilities Operating Expense Insurance Accounts Payable 17 - 12 Operating Expense Depreciation Accumulated Depreciation Equipment 13a Accounts Payable Cash 2014 Cash Allowance for Contractual Adjustments Allowance for Implicit Price Concessions Patient Accounts Receivable ssss 21 152 Operating Revenue-Without Donor RestrictionsPa Operating Revenue-Without Donor Restrictions Oth Nonoperating Income-Without Donor Restrictions- Nonoperating Income-Without Donor RestrictionsIO Reclassifications to Net Assets Without Donor Restrict Reclassifications to Net Assets Without Donor Restrict Contractual Adjustments Provision for Implicit Price Concessions Loss on Sale of Equipment-Unrestricted Operating Expense Depreciation Operating ExpenseSalaries and Benefits Operating Expense-Utilities Operating Expense-Insurance Operating Expense Interest Net Assets Without Donor Restrictions sssssssss 22 15b Revenues With Donor Restrictions Contributions Reclassifications from Net Assets With Donor Restricts Reclassifications from Net Assets With Donor Restricts Net Assets With Donor Restrictions PORT HUDSON COMMUNITY HOSPITAL For the Year Ended December 31, 2020 Revenues Without Donor Restrictions: Patient Service RevenuesNet of Contractual Adjustments Other Operating Revenues Total Revenues Net Assets Released From Restrictions: Satisfaction of Program Restrictions Total Operating Revenues Operating Expenses: Salaries and Benefits Utilities Insurance Depreciation Total Operating Expenses Operating Income Other Income: Unrestricted Gifts and Bequests Income on Endowment Investments Total Other Income Excess of Revenues Over Expenses Net Assets Released from Restrictions: Satisfaction of Capital Acquisition Restrictions Loss on Sale of Equipment $ PORT HUDSON COMMUNITY HOSPITAL Statement of Changes in Net Assets For the Year Ended December 31, 2020 Net Assets without Donor Restrictions: Excess of Revenues Over Expenses Net Assets Released From Restrictions: Satisfaction of Capital Acquisition Restrictions Loss on Sale of Equipment Increase in Net Assets without Donor Restrictions o Net Assets with Donor Restrictions: Contribution Revenue Net Assets Released From Restrictions SOS Increase in Net Assets with Donor Restrictions Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year 0