Exercise 12-6 (Algo) 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 $1,850,000. Estimated contractual adjustments with third-party payors amounted to $500,000 and the Hospital estimated implicit price concessions would total $15,000. 2. Charity services, not included in transaction 1, would amount to $76,000, had billings been made at gross amounts. 3. Other revenues, received in cash, were parking lot, $25,000; cafeteria, $42,500; gift shop, $7,500. 4. Cash gifts restricted by the donor for programs amounted to $30,250 for the year. During the year, $59,000 was expended for technician salaries supporting the program identified by the donor (debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $58,000 for principal and $34,000 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $49,000 and unrestricted income of $41,250 from endowment investments. (It is the hospital's practice to treat unrestricted gifts as nonoperating income.) 7. New equipment, costing $162,000, 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 $100,000 and that had an undepreciated cost of $20,000 was sold for $12,000 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, $205,000. 11. Bills were received for the following items: Utilities $145,500 and Insurance $84,000. These will be paid in January of 2021. 12. Depreciation of plant and equipment amounted to $195,000. 13. Cash payments on accounts payable amounted to $181,500. Another $811,500 was expended on wages and benefits. 14. Cash collections of patient accounts receivable amounted to $1,190,000. These were in settlement of patient accounts totaling $1,612,000. Contractual adjustments associated with these totaled $410,000 and price concessions totaled $12,000. 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 $7,075,000. Required A Required B Required C Record the transactions in the general journal of the Port Hudson Community Hospital. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Debit Credit 1 1a Patient Accounts Receivable 1,850,000 Operating Revenue-Without Donor Restrictions-Patient Service Reven 1,850,000 2 1b Patient Accounts Receivable Revenues-With Donor Restrictions-Contributions 500,000 500,000 3 1c Provision for Implicit Price Concessions Allowance for Implicit Price Concessions 15,000 15,000 4 02 No Journal Entry Required 5 03 Cash 75,000 Operating Revenue-Without Donor Restrictions-Other Revenue 75,000 6 4a Cash Revenues-With Donor Restrictions-Contributions 7 4b Operating Expense-Salaries and Benefits Cash 30,250 30,250 59,000 59,000 8 4c Reclassifications from Net Assets With Donor Restrictions-Satisfaction of P Reclassifications to Net Assets Without Donor Restrictions-Satisfaction 9 05 Operating Expense-Interest 10 10 06 Mortgage Bonds Payable Cash Cash S 30,250 30,250 34,000 58,000 92,000 90,250 10 06 Cash Nonoperating Income-Without Donor Restrictions-Gifts and Bequests Nonoperating Income-Without Donor Restrictions-Income on Investme 11 7a Equipment Cash 90,250 49,000 41,250 162,000 162,000 12 7b Reclassifications from Net Assets With Donor Restrictions-Satisfaction of 162,000 13 08 Reclassifications to Net Assets Without Donor Restrictions-Satisfaction Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment-Unrestricted Equipment 0000 162,000 12,000 80,000 8,000 100,000 14 09 Contributions Receivable Revenues-With Donor Restrictions-Contributions 130,000 130,000 15 10 Cash 205,000 Revenues-With Donor Restrictions-Contributions 205,000 16 11 Operating Expense-Utilities Operating Expense-Insurance Accounts Payable 145,500 84,000 229,500 17 12 Operating Expense-Depreciation 195,000 Accumulated Depreciation-Equipment 195,000 18 13a Accounts Payable 181,500 Cash 181,500 19 13b 330 20 20 14 21 21 15a 59 Operating Expense-Salaries and Benefits Cash Cash Patient Accounts Receivable 811,500 811,500 1,190,000 1,190,000 Operating Revenue-Without Donor Restrictions-Patient Service Revenue Operating Revenue-Without Donor Restrictions-Other Revenue Nonoperating Income-Without Donor Restrictions-Gifts and Bequests Nonoperating Income-Without Donor Restrictions-Income on Investments Reclassifications to Net Assets Without Donor Restrictions-Satisfaction of 1,850,000 75,000 49,000 41,250 30,250 > Reclassifications to Net Assets Without Donor Restrictions-Satisfaction of R 162,000 Contractual Adjustments 500,000 Loss on Sale of Equipment-Unrestricted 8,000 Accumulated Depreciation-Equipment 195,000 Operating Expense-Salaries and Benefits 811,500 Operating Expense-Utilities 145,500 Operating Expense-Insurance Operating Expense-Interest 84,000 34,000 Net Assets Without Donor Restrictions 429,500 Provision for Implicit Price Concessions 15,000 22 15b Revenues-With Donor Restrictions-Contributions 365,250 Reclassifications from Net Assets With Donor Restrictions-Satisfaction o 30,250 Reclassifications from Net Assets With Donor Restrictions-Satisfaction Net Assets With Donor Restrictions 162,000 173,000 Prepare a Statement of Operations for the Port Hudson Community Hospital for the year amounts as positive values. Loss amounts should be indicated by a minus sign.) PORT HUDSON COMMUNITY HOSPITAL Statement of Operations For the Year Ended December 31, 2020 Revenues Without Donor Restrictions: Patient Service Revenues-Net 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 Other Income: $ 1,350,000 75,000 1,425,000 162,000 1,587,000 811,500 145,500 84,000 195,000 1,236,000 Unrestricted Gifts and Bequests 49,000 Income on Endowment Investments 41,250 Total Other Income Excess of Revenues Over Expenses 90,250 90,250 Net Assets Released from Restrictions: Satisfaction of Capital Acquisition Restrictions Loss on Sale of Equipment 30,250 (8,000) Increase in Net Assets without Donor Restrictions $ 112,500 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a Statement of Changes in Net Assets for the Port Hudson Community Hospital for th 2020. Assume beginning net assets are $7,075,000. (Loss/Negative amounts should be indic 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: $ 92,250 Satisfaction of Capital Acquisition Restrictions 30,250 Loss on Sale of Equipment (8,000) Increase in Net Assets without Donor Restrictions 114,500 Net Assets with Donor Restrictions: Contribution Revenue Net Assets Released From Restrictions 500,000 x 192,250 x Increase in Net Assets with Donor Restrictions 692,250 Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year