Problem 1 (25 points). Attached is the trial balance for Yellow Memorial Hospital, a nongovernmental not for profit hospital, at July 1, 20X2, the beginning of its fiscal year. Also attached are summarized transactions that took place during the 20X2-20X3 fiscal year. REQUIRED: Prepare general journal entries, in proper form, to record the attached transactions on the books of Yellow Memorial Hospital for the fiscal year ending June 30, 20X3. Indicate for which net asset class the entry should be made (UR--Unrestricted, TR-- Temporarily Restricted, and PR--Permanently Restricted). Omit explanations. Use the letter of the transaction as the date. Credit 8,000 YELLOW MEMORIAL HOSPITAL TRIAL BALANCE AT JULY 1, 20X2 Account Debit Cash $ 15,000 Patient Accounts Receivable 65,000 Allowance For Uncollectible Accounts S Land 400,000 Building 3,000,000 Accumulated Depreciation, Building Equipment 3,250,000 Accumulated Depreciation, Equipment Accounts Payable Notes Payable Bonds Payable Net Assets--Unrestricted Totals S 6 ,730,000$ 300,000 975,000 15,000 105,000 2,600,000 2,727,000 6,730,000 YELLOW MEMORIAL HOSPITAL SUMMARY TRANSACTIONS FOR FISCAL YEAR 20X2-20X3 (a) Patients were billed for $2,500,000 for services provided. Of this amount, $1,500,000 was for nursing services and the remainder was for other professional services. (b) There were several patient accounts deemed to be uncollectible. The hospital wrote off $5,500 of these accounts. (c) A corporation gave the hospital a grant for medical research in the amount of $400,000. The hospital immediately invested this money in short term investments. (d) Operating expenses for the year, in addition to those mentioned in other places, included the following amounts. Assume that all expenses are incurred on credit. $ Nursing Services Other Professional Services T General Services Administrative Services Dietary Services 600,000 2 50,000 325,000 210,000 115,000 (e) Patient receivables in the amount of $2,450,000 were collected during the year. (f) Payables in the amount of $1,485,000 were paid during the year. (g) Several donors contributed a total of $880,000 in funds that are restricted for an Emergency Burn Unit (EBU) addition to the hospital. These funds were invested immediately in an investment account specifically established for this project. (h) Interest expense on the outstanding debt was $270,000, of which 60% was paid in cash and the remainder was accrued at year end. (i) The hospital's governing board decided to establish a professional development fund for its staff. The board set aside $30,000 in a special fund for this purpose. The hospital drafted plans and a construction schedule for the EBU. Costs related to these activities were $150,000. Investments that had been made for this purpose in (g) above in the amount of $150,000 were liquidated to provide the cash. These investments had been originally purchased for $125,000. An individual donated $50,000 to the hospital with the stipulation that the principal must remain intact. The income from the gift can be used in any way that the governing board deems appropriate. This money was immediately invested. (1) The investments in (k) above earned $3,000 during the year. Of this amount, $2,500 was received in cash and the remainder will be received in the next fiscal year