The Edwards Lake Community Hospital balance sheet as of December 31, 2019, follows. $ 512,000 28,400 101,400 641,800 $ 19,040 238, 720 257,760 EDWARDS LAKE COMMUNITY HOSPITAL Balance Sheet As of December 31, 2019 Assets Current assets: Cash and Cash Equivalents Accounts and notes receivable (net of uncollectible accounts of $17,700) Inventory Total current assets Assets limited as to use: Cash Investments Total assets limited as to use Property, plant, and equipment: Land Buildings (net of accumulated depreciation of $1,624,900) Equipment (net of accumulated depreciation of $1,026,400) Total property, plant, and equipment Total assets Liabilities and Net Assets Current liabilities: Accounts payable Accrued payroll Current portion of mortgage payable Total current liabilities Long-term debt-mortgage payable Total liabilities Net assets: Without donor restrictions Undesignated Designated for plant With donor restrictions Total liabilities and net assets 219,600 2,902,500 1,862,600 4,984,700 $5,884,260 21,100 48,800 595,000 664,900 2,690,000 3,354,900 2,092, 260 255,860 181,240 2,529,360 $5,884,260 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 Charity care Contractual adjustments to patient service revenues Other operating revenues $3,502,800 220,760 1,539,000 1,002,550 (2) Cash received includes Interest on investments in Assets Limited as to Use Collections of receivables 9, 250 2,965,800 (3) Expenses of $900,500 were recorded in accounts payable and $1,465,790 in accrued payroll. Because some of the nursing expenses met a net asset restriction, $103,500 was released from restrictions. Administration expenses General services expenses Nursing services expenses Other professional services expenses 455,980 529, 110 1,033,700 347,500 (4) Cash paid includes: Interest expense (allocated half to nursing services and half to general services) Payment on mortgage principal Accounts payable for purchases Accrued payroll $ 299,000 595,000 840,600 1,289,000 (5) Interest of $2,130 accrued on investments in Assets Limited as to Use. (6) Depreciation charges for the year amounted to $126,500 for the buildings and $138,000 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: Administration General services Nursing services Other professional services Totals 12/31/2019 $ 13,700 14,400 26,500 46,800 $101,400 12/31/2020 $ 11,100 18,500 20,600 59,000 $109,200 (c) Portion of mortgage payable due within one year, $595,000. (8) A $701 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