The following selected events and transactions were recorded by Milos County Hospital.

Gross charges for hospital services, all charged to accounts and notes receivable, were as follows:

Patient service revenue $$1,668,700$

The hospital cafeteria and gift shop had cash sales of $$297,200.$

Additional information determined subsequently to recording patient service revenues and relating to the current year is as follows:

Contractual adjustments $ $651,000$

Provision for bad debts $32,100$

Charity care $263,300$

A federal cost reimbursement research grant of $$369,000$ was awarded. As of the end of the year, $$390,000$ in expenses related to the grant had been made.

Vouchers totaling $$1,370,240$ were issued for the following items:

Fiscal and administrative services expenses $ $203,940$

General services expenses $255,000$

Nursing services expenses $604,000$

Other professional services expenses $187,500$

Inventory $110,700$

Expenses accrued at December $319,100$

Collections of accounts receivable totaled $$1,178,000.$ Accounts written off as uncollectible amounted to $$13,800.$

Cash payments on vouchers payable $($paid to employers and suppliers$)$ during the year were $$1,040,700.$

Supplies of $$101,670$ were issued to nursing services.

On December $31,$ accrued interest income on investments was $$2,700.$

Depreciation of buildings and equipment was as follows:

Buildings $ $70,000$

Equipment $92,000$

$11.$ On December $31,$ closing entries were made in the general journal.

Required

a$-1.$ Prepare journal entries for each of the transactions in accordance with the standards for a governmental health care entity that follows proprietary fund accounting.

a$-2.$ Prepare closing entries in accordance with the standards for a governmental health care entity that follows proprietary fund accounting.

b$.$ Calculate the net patient service revenue that would be reported on the statement of revenues, expenses, and changes in net position.