Problem IV: The December 31, 2017 statement of financial position of Mosholu Medical Center, a major urban not-for-profit hospital and research center, is presented below. All amounts are in thousands Masha Medical Center Statement of Financial Positions of December 11, 2017 Curtis Sony 64.710 wapes and sales les for patient care (net) V 27.850 Lengte med ies dhe her ITcal Totales uport 5512.18 m ed de $221.259 925 News 1300447 Temporarily Restricted II. Permanent Resid Tv Tellise 024 The following transactions and events occurred in 2018 (all dollar amounts in thousands): 1. The hospital provided $705,943 in patient care at standard rates. On average, it expects to collect approximately 75 percent (SS29,457) of this amount, owing mainly to discounts allowed third-party payers, Further, it expects that 5 percent of the 75 percent (S26,473) will have to be written off as bad debts. 2. It collected $480,125 in patient accounts and it wrote off $50,000 of bad debts. 3. It also provided $52,000 in charity care which it never expected to collect. 4. It eamed $15,040 in investment income, of which $10,080 is unrestricted and $4,960 is temporarily restricted. 5. It purchased plant and equipment of $2,242, all of which was paid for with restricted resources. 6. It charged depreciation of $29,262 7. It received unrestricted pledges of $2,070 and temporarily restricted pledges of $120. It collected all of the unrestricted pledges and S100 of the temporarily, restricted pledges. 8. It carned other operating revenues (including those from auxiliary enterprises) of $135,000. 9. It incurred S430,650 in wages and salaries, of which it paid $425,000. The balance was accrued. It also incurred S200,000 in other operating expenses (including those of auxiliary enterprises), of which it paid $198,500. The balance was vouchered and thereby credited to accounts payable). 10. It incurred and paid S210,200 in costs related to restricted contracts and grants (amounts that were not included in any other expense category). It was reimbursed for $206,800 and expects to be reimbursed for the balance in the future. In addition, it received $3,000 in advances on other grants. 11. The other operating expenses include insurance costs. However, under "retrospective" insurance policies, the hospital anticipates having to pay an additional $3,500 in premiums. Required: a. Prepare journal entries to record the transaction. Be sure to indicate whether each entry would affect unrestricted, temporarily restricted, or permanent restricted net assets. b. Prepare a statement of activities for 2018 and a statement of financial position as of December 31, 2018. Clemuel 1, 2017 Slaleler U1 Illallllal PUSILIONI of Mosholu Medical Center, a major urban not-for-profit hospital and research center, is presented below. All amounts are in thousands. 112.902 Mosholu Medical Center Statement of Financial Position as of December 31, 2017 Assets Liabilities Current assets Current liabilities Cash 2,704 Accounts payable Receivables for patient care (net) 64,710 Accrued wages and salaries Other receivables 24,402 Total current liabilities Marketable securities 187,909 Noncurrent liabilities Other current assets 27,853 Long-term debt Total current assets 307.578 Deferred revenue & other noncurrent liabilities Noncurrent assets Total noncurrent liabilities Property, plant, equipment ($512,184 Total liabilities less accumulated depreciation $223,259) 288,925 Net assets Other assets 11,522 Unrestricted Total noncurrent assets 300.447 Temporarily Restricted Total assets 608,025 Permanently Restricted Total net assets Total liabilities & net assets 292,370 106,932 399,302 512,204 15,722 62.963 17,136 95,821 608,025