The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency: a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000. b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000. c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of dona- tion of $75,000. The donation was restricted to expenditure for modernization of equip- ment. The donation was accepted. d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset. e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements. f. Pledges of $60,000 and cash of $20,000 were received to defer operating expenses. Of the pledges, 10% are considered uncollectible. Term endowments of $10,000 matured and were released to cover operations. g. Equipment costing $250,000 was purchased on account. Restricted resources held for that purpose will be released from restriction over the useful life of the asset. h. The nursing home uses functional operating expense control accounts. Expenses for the year were as follows: Functions Nursing services Dietary services. Maintenance services. Administrative services Interest.. ... Subtotal (of which $253,000 is unpaid).. Depreciation [$20,000 from assets purchased with resources in items (d) and (g) above].. Total ...... $1,120,000 230,000 115,000 285,000 160,000 $1,910,000 60,000 $1,970,000 1. Omitting explanations, prepare journal entries for the foregoing events. 2. Prepare a statement of activities for the year ended December 31, 2019.