Problem 2 (30 points). The following transactions took place during the fiscal year ended December 31, 20X7 for St. John's Hospital, a nonprofit hospital following FASB standards of accounting and financial reporting (1) Unrestricted revenues, all received in cash, included patient service, S11,000,000; other revenue, $1,500,000; unrestricted gifts and bequests, S975,000; interest, S450,000. In addition, $2,100,000 in patient service revenue and S95,000 in interest revenue were accrued. (2) Pledges were received in the following amounts: unrestricted as to purpose but to be expended in the next fiscal year, $425,000; restricted for program purposes, $275,000; restricted for acquisition of plant, $765,000; and endowment, S315,000 (3) During the year, cash was received in the amount of S365,000 for pledges that had been fiscal year but were restricted as to time. In addition, cash made by donors in the previous b was received in the amount of $450,000 for pledges received in the previous fiscal year that were restricted for program purposes, and S630,000 for pledges that were restricted for plant acquisitions. The appropriate programs were accomplished during the current fiscal year and related to professional care of patients. In addition, plant assets were acquired and recorded as unrestricted net assets. (4)Expenses during the year, in addition to those mentioned in previous entries, included the following: Profesonal Care of Patients, $9,475,000; Dietary Services, S2,150,000 General Services, S1,345,000; Provision For Bad Debts, S840,000; Depreciation $2,125,000; and Interest, $600,000. All but the provision for bad debts and the depreciation were paid in cash REQUIRED: () Record the above transactions, in general journal form, indicating in which net asset class each entry should be made. Omit explanations. Use the number as the transaction date. Prepare a Statement of Operations and a Statement of Changes in Net Assets, in proper form, for St. John's Hospital for the fiscal year ended December 31, 20X7. Beginning net asset balances were: Unrestricted, $425,000; Temporarily Restricted, $1,200,000; Permanently Restricted, $3,400,000 (2)