Excel-Based Problems 12-9. As of January 1, 2017, the trial balance for Haven Hospital was as follows: yo Debits Credits $ 830,000 3,250,000 $ 650.000 2,480,000 353,000 Cash Patient Accounts Receivable Allowance for Uncollectible Patient Accounts Receivable Contributions Receivable Allowance for Uncollectible Contributions Receivable Supplies Investments-Board Designated Investments-Other Property, Plant, and Equipment Accumulated Depreciation- Property, Plant, and Equipment Accounts Payable Long-Term Debt-Current Installment Long-Term Debt-Noncurrent Net Assets-Unrestricted-Board Designated Net Assets-Unrestricted-Undesignated Net Assets-Temporarily Restricted Net Assets-Permanently Restricted Totals 130,000 1,700,000 10,100,000 7,500,000 4,600,000 600,000 200,000 3,100,000 1,700,000 1,644,000 6,136,000 7,007,000 $25,990,000 $25,990,000 During the fiscal year ended December 31, 2017, the following transactions occurred: 1. Patient service revenue amounted to $20,990,000, all recorded on account. Contractual adjustments were recorded in the amount of $3,800,000. Uncollectible accounts are estimated to be $620,000. Cash was received on account in the amount of $17,600,000. 366 Chapter 12 2. Other revenue (cafeteria, parking lot, etc.) amounted to $2,580,000, all received in cash. 3. Patient accounts in the amount of $430,000 were written off. 4. Unrestricted gifts and bequests were received in cash in the amount of $317,000. Unrestricted income on investments of endowment funds amounted to $400,000. (It is the hospital's practice to treat unrestricted gifts as nonoperating revenue.) 5. Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $95,000 and was received in cash. Do not increase board-designated net assets at this stage, but close out the revenue account to board-designated net assets in entry 19. 6. Investment income, restricted for donor-specified purposes, was received in cash in the amount of $250,000. Investment income, required by donor agreement to be added to endowment balances, was received in cash in the amount of $100,000. 7. Cash contributions were received in the following amounts: $2,001,000 for current restricted purposes; $2,450,000 for future plant expansion; and $1,050,000 required by the donor to be invested permanently in an endowment. 8. Pledges receivable in the amount of $2,100,000 were received in cash. These pledges were on hand at the beginning of the year (reflected in temporarily restricted net assets, for purposes of time) and were unre- stricted as to purpose. In addition, pledges for endowment purposes were collected in the amount of $450,000. 9. $1,550,000 in temporarily restricted net assets was expended, as the donors stipulated, for cancer research. Debit Operating Expense- Salaries and Benefits, $1,400,000; and Operating ExpenseSupplies, $150,000. (Assume the supplies were purchased with cash and used in the same year.) 10. $1,970,000 in temporarily restricted net assets was expended for equip- ment, as provided for by the donor. The policy of Haven Hospital is to record all property, plant, and equipment as unrestricted. 11. In addition, $600,000 was received in pledges for temporarily restricted purposes. It was decided that the allowance for contributions was sufficient. 12. Supplies were purchased in the amount of $690,000, on account. 13. Operating expenses (in addition to those already recorded in entries 1 and 9) for the year included: depreciation of $600,000; supplies used of $687,000; and salaries and benefits of $20,985,000 (paid in cash). In addition, the following expenses were recorded through Accounts Payable: utilities of $515,000 and insurance of $320,000. 14. Accounts payable were paid in the amount of $1,767,000. 15. Current installments of long-term debt were paid in the amount of $200,000. The portion to be paid next year is $300,000. Interest was paid in the amount of $181,000 and is reported as an operating expense. 16. Investments, carried at a basis of $4,000,000, were sold for $4,050,000. The $50,000 gain is considered to be temporarily restricted. 17. Cash in the amount of $6,800,000 was invested. Of that amount, $95,000 was from CashAssets Whose Use Is Limited and is designated by the board for renewals and replacements (see entry 5). 18. A reading of the financial press indicated that investments increased in mar- ket value by $800,000. Of that amount, $250,000 was in investments desig- nated by the board for renewals and replacements, $350,000 is required by donors to be added to endowment balances, and the remainder is unrestricted. 19. Closing entries were prepared. Required: a. Using the Excel template provided, prepare journal entries for each of the previous transactions. b. Prepare a Statement of Operations for Haven Hospital for the year ended December 31, 2017. c. Prepare a Statement of Changes in Net Assets for Haven Hospital for the year ended December 31, 2017. d. Prepare a Statement of Financial Position for Haven Hospital as of December 31, 2017. e. Prepare a Statement of Cash Flows for Haven Hospital for the year ended December 31, 2017, using the indirect method