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

EDWARDS LAKE COMMUNITY HOSPITAL
Balance Sheet
As of December 31, 2019
Assets
Current assets:
Cash and Cash Equivalents						$	392,300
Accounts and notes receivable (net of uncollectible accounts of $16,800)							27,500
Inventory							87,000
Total current assets							506,800
Assets limited as to use:
Cash		$	18,140
Investments			234,220
Total assets limited as to use							252,360
Property, plant, and equipment:
Land			215,100
Buildings (net of accumulated depreciation of $1,624,000)			2,898,000
Equipment (net of accumulated depreciation of $1,025,500)			1,860,800
Total property, plant, and equipment							4,973,900
Total assets						$	5,733,060
Liabilities and Net Assets
Current liabilities:
Accounts payable						$	20,200
Accrued payroll							47,000
Current portion of mortgage payable							550,000
Total current liabilities							617,200
Long-term debtmortgage payable							2,600,000
Total liabilities							3,217,200
Net assets:
Without donor restrictions
Undesignated			2,087,760
Designated for plant			251,360
With donor restrictions			176,740				2,515,860
Total liabilities and net assets						$	5,733,060

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	$	3,501,900
Charity care		216,260
Contractual adjustments to patient service revenues		1,530,000
Other operating revenues		1,000,750

(2) Cash received includes

Interest on investments in Assets Limited as to Use		8,350
Collections of receivables		2,965,600

(3) Expenses of $896,000 were recorded in accounts payable and $1,460,390 in accrued payroll. Because some of the nursing expenses met a net asset restriction,

$99,000 was released from restrictions.

Administration expenses		451,480
General services expenses		526,860
Nursing services expenses		1,032,800
Other professional services expenses		345,250

(4) Cash paid includes:

Interest expense (allocated half to nursing services and half to general services)	$	290,000
Payment on mortgage principal		550,000
Accounts payable for purchases		838,800
Accrued payroll		1,284,500

(5) Interest of $1,680 accrued on investments in Assets Limited as to Use. (6) Depreciation charges for the year amounted to $122,000 for the buildings and $133,500 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:

	12/31/2019					12/31/2020
Administration		$	11,000				$	9,300
General services			11,700					14,000
Nursing services			22,000					18,800
Other professional services			42,300					50,000
Totals		$	87,000				$	92,100

(c) Portion of mortgage payable due within one year, $550,000.

(8) A $683 unrealized loss on investments occurred. (9) Nominal accounts were closed. Necessary adjustments were made to increase the Net AssetsWithout Donor Restrictions, Designated for Plant.

Required

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.

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.

b. Prepare a balance sheet as of December 31, 2020.

c-1. Prepare a statement of operations for the year ended December 31, 2020.

c-2. Prepare a statement of changes in net assets for the year ended December 31, 2020.

d. Prepare a statement of cash flows for the year ended December 31, 2020.