The Edwards Lake Community Hospital balance sheet as of December 31, 2019, follows.

EDWARDS LAKE COMMUNITY HOSPITALBalance SheetAs of December 31, 2019AssetsCurrent assets:Cash and Cash Equivalents$458,800Accounts and notes receivable (net of uncollectible accounts of $17,300)28,000Inventory95,000Total current assets581,800Assets limited as to use:Cash$18,640Investments236,720Total assets limited as to use255,360Property, plant, and equipment:Land217,600Buildings (net of accumulated depreciation of $1,624,500)2,900,500Equipment (net of accumulated depreciation of $1,026,000)1,861,800Total property, plant, and equipment4,979,900Total assets$5,817,060Liabilities and Net AssetsCurrent liabilities:Accounts payable$20,700Accrued payroll48,000Current portion of mortgage payable575,000Total current liabilities643,700Long-term debtmortgage payable2,650,000Total liabilities3,293,700Net assets:Without donor restrictionsUndesignated2,090,260Designated for plant253,860With donor restrictions179,2402,523,360Total liabilities and net assets$5,817,060

The following are the transactions of Edwards Lake Community Hospital during the fiscal year ended December 31, 2020.

(1) Information related to accrual of revenues and gains is as follows:

Patient services revenue, gross$3,502,400Charity care218,760Contractual adjustments to patient service revenues1,535,000Other operating revenues1,001,750

(2) Cash received includes

Interest on investments in Assets Limited as to Use8,850Collections of receivables2,967,800

(3) Expenses of $898,500 were recorded in accounts payable and $1,463,390 in accrued payroll. Because some of the nursing expenses met a net asset restriction, $101,500 was released from restrictions.

Administration expenses453,980General services expenses528,110Nursing services expenses1,033,300Other professional services expenses346,500

(4) Cash paid includes:

Interest expense (allocated half to nursing services and half to general services)$295,000Payment on mortgage principal575,000Accounts payable for purchases839,800Accrued payroll1,287,000

(5) Interest of $1,930 accrued on investments in Assets Limited as to Use.

(6) Depreciation charges for the year amounted to $124,500 for the buildings and $136,000 for equipment. Depreciation was allocated 45 percent to nursing services, 15 percent to other professional services and 20 percent to each administrative and general services.

(7) Other information:

(a) Provision for uncollectible receivables was determined to be adequate.

(b) Supplies inventory balances:

12/31/201912/31/2020Administration$12,500$10,300General services13,20016,500Nursing services24,50019,800Other professional services44,80055,000Totals$95,000$101,600

(c) Portion of mortgage payable due within one year, $575,000.

(8) A $693 unrealized loss on investments occurred.

(9) Nominal accounts were closed. Necessary adjustments were made to increase the Net AssetsWithout Donor Restrictions, Designated for Plant.

1. Required
2. a-1.Prepare journal entry for the preceding transactions during the fiscal year ended December 31, 2020, assuming that Edwards Lake Community Hospital is a not-for-profit hospital.
3. a-2.Prepare closing entries for the fiscal year ended December 31, 2020, assuming that Edwards Lake Community Hospital is a not-for-profit hospital.
4. b.Prepare a balance sheet as of December 31, 2020.
5. c-1.Prepare a statement of operations for the year ended December 31, 2020.
6. c-2.Prepare a statement of changes in net assets for the year ended December 31, 2020.
7. d.Prepare a statement of cash flows for the year ended December 31, 2020.