The following is the preadjusted trial balance of Grandtown Hospital at December 31, 20X1, the end of the hospitals current fiscal year:

Acct.

101 Cash $ 37,500

102 Temporary investments 30,000

103 Accrued interest receivable -0-

104 Accounts receivable 120,000

105 Allowance for uncollectible accounts $ -0-

106 Inventory 14,000

107 Prepaid insurance 3,600

120 Land 25,000

130 Buildings 250,000

131 Accumulated depreciationbuildings -0-

140 Equipment 140,000

141 Accumulated depreciationequipment -0-

201 Accounts payable 37,400

203 Accrued interest payable -0-

204 Accrued salaries and wages payable -0-

205 Deferred rental income 2,700

250 Bonds payable 150,000

301 Hospital net assets 395,700

302 Revenue and expense summary -0-

401 Routine services revenue 171,200

402 Ancillary services revenue 110,300

403 Interest income -0-

404 Rental income -0-

406 Other operating revenues 23,500

501 Contractual adjustments 22,700

502 Charity care adjustments 31,100

601 Salaries and wages expense 155,600

602 Supplies expense 33,100

603 Utilities expense 14,900

604 Insurance expense -0-

605 Repairs expense 6,400

607 Depreciation expense -0-

608 Interest expense 4,500

609 Bad debt expense -0-

610 Other expenses 2,400

Totals $890,800

The following additional information is available:

1. The temporary investment consists of $30,000 (face value) of 8 percent bonds acquired by the hospital on November 1, 20X1. These bonds pay interest annually on November 1, commencing on November 1, 20X2.

2. Of the December 31, 20X1, accounts receivable, it is estimated that 14 percent will eventually prove uncollectible by reason of (1) charity care, 7 percent; (2) contractual adjustments, 4 percent; and (3) bad debts, 3 percent.

3. A two-year insurance premium of $3,600 was paid in advance by the hospital on January 1, 20X1.

4. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 50 years and a 20 percent salvage value.

5. The equipment, which was acquired on January 1, 20X1, has an estimated useful life of 12 years and a $20,000 salvage value. 6. On January 1, 20X1, the hospital issued $150,000 of 20-year, 6 percent bonds at face value. These bonds pay interest semiannually on January 1 and July 1, commencing July 1, 20X1.

7. Unpaid salaries and wages at December 31, 20X1, amounted to $12,300.

8. The hospital received one years rent of $2,700 in advance on June 1, 20X1.

Required: (1) Prepare a worksheet to develop financial statements in the manner illustrated in Figure 8.3. (2) Prepare, in good form, a complete set of financial statements for 20X1. (3) Prepare, in general journal form, the necessary adjusting entries at December 31, 20X1, for the year then ended. (4) Prepare, in general journal form, the necessary closing entries on December 31, 20X1, for the year then ended.