The Edwards Lake Community Hospital balance sheet as of December 31, 2017, follows. EDWARDS LAKE COMMUNITY HOSPITAL Balance Sheet As of December 31, 2017 Assets Current assets: Cash and Cash Equivalents $ 272,600 Accounts and notes receivable (net of uncollectible accounts of $15,900) 26,600 Inventory 72,600 Total current assets 371,800 Assets limited as to use: Cash $ 17,240 Investments 229,720 Total assets limited as to use 246,960 Property, plant, and equipment: Land 210,600 Buildings (net of accumulated depreciation of $1,623,100) 2,893,500 Equipment (net of accumulated depreciation of $1,024,600) 1,859,000 Total property, plant, and equipment 4,963,100 Total assets $ 5,581,860 Liabilities and Net Assets Current liabilities: Accounts payable $ 19,300 Accrued payroll 45,200 Current portion of mortgage payable 505,000 Total current liabilities 569,500 Long-term debtmortgage payable 2,510,000 Total liabilities 3,079,500 Net assets: Unrestricted Undesignated 2,083,260 Designated for plant 246,860 Temporarily restricted 172,240 2,502,360 Total liabilities and net assets $ 5,581,860 The following are the transactions of Edwards Lake Community Hospital during the fiscal year ended December 31, 2017. (1) Information related to accrual of revenues and gains is as follows: Patient services revenue, gross $ 3,501,000 Charity care 211,760 Contractual adjustments to patient service revenues 1,521,000 Other operating revenues 998,950 (2) Cash received includes: Interest on investments in Assets Limited as to Use 7,450 Collections of receivables 2,961,100 (3) Expenses of $891,500 were recorded in accounts payable and $1,454,990 in accrued payroll. Since some of the nursing expenses met a temporary net asset restriction, $94,500 was released from temporary restrictions. Administration expenses 446,980 General services expenses 524,610 Nursing services expenses 1,031,900 Other professional services expenses 343,000 (4) Cash paid includes: Interest expense (allocated half to nursing services and half to general services) $ 281,000 Payment on mortgage principal 505,000 Accounts payable for purchases 837,000 Accrued payroll 1,280,000 (5) Interest of $1,230 accrued on investments in Assets Limited as to Use. (6) Depreciation charges for the year amounted to $117,500 for the buildings and $129,000 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: 12/31/2016 12/31/2017 Administration $ 8,300 $ 7,500 General services 9,000 9,500 Nursing services 17,500 17,000 Other professional services 37,800 41,000 Totals $ 72,600 $ 75,000 (c) Portion of mortgage payable due within one year, $505,000. (8) A $665 unrealized loss on investments occurred. (9) Nominal accounts were closed. Necessary adjustments were made to increase the Net AssetsUnrestricted, Designated for Plant. a-1. Prepare journal entry for the preceding transactions during the fiscal year ended December 31, 2017, assuming that Edwards Lake Community Hospital is a not-for-profit hospital. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)