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.

Mosholu Medical Center
Statement of Financial Position as of December 31, 2017
Assets		Liabilities
Current assets		Current liabilities
Cash	2,704	Accounts payable	55,960
Receivables for patient care (net)	64,710	Accrued wages and salaries	56,942
Other receivables	24,402	Total current liabilities	112,902
Marketable securities	187,909	Noncurrent liabilities
Other current assets	27,853	Long-term debt	292,370
Total current assets	307,578	Deferred revenue & other noncurrent liabilities	106,932
Noncurrent assets		Total noncurrent liabilities	399,302
Property, plant, equipment ($512,184 less		Total liabilities	512,204
accumulated depreciation $223,259)	288,925	Net assets
Other assets	11,522	Unrestricted	15,722
Total noncurrent assets	300,447	Temporarily Restricted	62,963
Total assets	608,025	Permanently Restricted	17,136
		Total net assets	95,821
		Total liabilities & net assets	608,025

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 ($529,457) of this amount, owing mainly to discounts allowed third-party payers. Further, it expects that 5 percent of the 75 percent ($26,473) 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 earned $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 $100 of the temporarily, restricted pledges.

8. It earned other operating revenues (including those from auxiliary enterprises) of $135,000.

9. It incurred $430,650 in wages and salaries, of which it paid $425,000. The balance was accrued. It also incurred $200,000 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 $210,200 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.