The following events pertain to Bryant Hospital, a privately funded medical facility, for 2018. Bryants accounting year ends December 31.

1. The hospital billed patients for $12,000,000. Cafeteria sales were $500,000.

2. Supplies with a market value of $300,000 were donated. Equipment with a market value of $700,000 and a book value to the donor of $200,000 was donated. Bryant reports donations of capital assets as unrestricted.

3. Operating expenses were as follows:

Patient services	$9,000,000
Research projects	500,000
Administrative services	3,800,000
General costs	2,000,000
Total	$15,300,000

4. A gift of $800,000 was received, to be used in a particular research program. $200,000 was expended for the research (included in 3. above), and the remainder was invested in short-term debt securities and earned interest of $25,000. The donor specified that investment income is also restricted for the designated research purposes.

5. An endowment of $3,000,000 is received. The principal is to be maintained, with 50% of the income restricted for a special research project, and the other 50% unrestricted. The $3,000,000 is invested, and income of $140,000 is received. $50,000 is spent on the research project (included in Item 3. above).

Instructions

1. Prepare journal entries to record the transactions. Assume fund accounting is not used.

2. Prepare Bryant Hospitals statement of activities for 2018. Assume the beginning net asset balances for the hospital are: $8,000,000 for unrestricted net assets, $2,000,000 for temporarily restricted net assets, and $2,000,000 for permanently restricted net assets.