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

Table Summary: Spanner head Balance Sheet Accounts spans the two date columns.

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 InvestmentsEndowment 1,500,000 1,620,000 Property, Plant, and Equipment 4,875,000 5,182,000 Credits Accumulated Depreciation 2,107,000 2,567,000 Accounts Payable (supplies) 37,500 46,200 Long-Term Debt 2,282,000 2,782,000 Net Assets or Net PositionDecember 31, 2019 5,358,500 Net Assets or Net PositionDecember 31, 2020 6,291,000

ACTIVITY ACCOUNTS
Debits
Contractual Adjustments	1,100,000
Provision for Implicit Price Concessions	33,500
Operating ExpensesDepreciation	460,000
Operating ExpensesSalaries	6,900,000
Operating ExpensesSupplies	2,200,000
Reclassification from Net Assets with Donor Restrictions (time restrictions)	19,600
Net Losses on InvestmentsPermanent Endowment	10,000
Credits
Patient Service Revenue(patient portion) Unrestricted	3,156,000
Patient Service Revenue(insurer portion) Unrestricted	7,364,000
Income on EndowmentsUnrestricted	25,000
Reclassification to Unrestricted Net Assets	19,600
Contribution Revenuewithout Donor Restrictions	36,000
Contribution Revenuewith Donor Restrictions (endowment)	130,000
Contribution Revenuewith Donor Restrictions (Restricted for Future Years)	25,000
Other Information:
Sales of Property and Equipment	none
Purchases of Property and Equipment	307,000
Issuance of Long-Term Debt	600,000
Excess Credits over DebitsActivity Accounts	32,500
Beginning Net Assets or Net Position	5,358,500
Ending Net Assets or Net Position 2015	5,391,000

Table Summary: T account has entries on both debit and credit sides except for first, fourth, and final rows, which have amounts only on the debit side.

CASH (2020) Beginning balance 1/1 1,000,000 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 ProceedsLT debt 600,000 130,000 Purchase Endowment Investments Ending balance 12/31 1,995,700

Page 377The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold.

Required:

Using the information above and the Excel template provided, prepare

1. 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.

2. Statements of Cash Flow assuming

   1. Monterey Hospital is a private not-for-profit.

   2. Monterey Hospital is a government-owned hospital.