The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold. Required: Using the information above and the Excel template provided, prepare: a. A Statement of Operations and a Statement of Changes in Net Assets for the year ended December 31, 2017 b. Statements of Cash Flow assuming 1. Monterey Hospital is a private not-for-profit. 2. Monterey Hospital is a government-owned hospital. 129. As of January 1, 2017, the trial balance for Haven Hospital was as follows: Debits _ Credits Cash $ $30,000 Patient Accounts Receivable 3,250,000 Allowance for Uncollectible Patient Accounts Receivable $ 650,000 Contributions Receivable 2,480,000 Allowance for Uncollectible Contributions Receivable 353,000 Supplies 130,000 Investments-Board Designated 1,700,000 InvestmentsOther 10,100,000 Property, Plant, and Equipment 7,500,000 Accumulated Depreciation- Property, Plant, and Equipment 4,600,000 Accounts Payable 600,000 Long-Term DebtCurrent Installment 200,000 Long-Term Debt-Noncurrent 3,100,000 Net AssetsUnrestrictedBoard Designated 1,700,000 Net AssetsUnrestrictedUndesignated 1,644,000 Net AssetsTemporarily Restricted Net AssetsPermanently Restricted Totals 6,136,000 7,007,000 $25.990,000 $25,990,000 During the fiscal year ended December 31, 2017, the following transactions occurred: 1. Patient service revenue amounted to $20,990,000, all recorded on account. Contractual adjustments were recorded in the amount of $3,800,000. Uncollectible accounts are estimated to be $620,000. Cash was received on account in the amount of $17,600,000 2. Other revenue (cafeteria, parking lot, etc.) amounted to $2,580,000, all received in cash. page 366 3. Patient accounts in the amount of $430,000 were written off. 4. Unrestricted gifts and bequests were received in cash in the amount of $317,000. Unrestricted income on investments of endowment funds amounted to $400,000. (It is the hospital's practice to treat unrestricted gifts as nonoperating revenue.) 5. Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $95,000 and was received in cash. Do not increase board-designated net assets at this stage, but close out the revenue account to board-designated net assets in entry 19. 6. Investment income, restricted for donor-specified purposes, was received in cash in the amount of $250,000. Investment income, required by donor agreement to be added to endowment balances, was received in cash in the amount of $100,000. 7. Cash contributions were received in the following amounts: $2,001,000 for current restricted purposes, $2,450,000 for future plant expansion, and $1,050,000 required by the donor to be invested permanently in an endowment. 8. Pledges receivable in the amount of $2,100,000 were received in cash. These pledges were on hand at the beginning of the year (reflected in temporarily restricted net assets, for purposes of time) and were unrestricted as to purpose. In addition, pledges for endowment purposes were collected in the amount of $450,000. 9. $1,550,000 in temporarily restricted net assets was expended, as the donors stipulated, for cancer research. Debit Operating ExpenseSalaries and Benefits, $1,400,000, and Operating ExpenseSupplies, $150,000. (Assume the supplies were purchased with cash and used in the same year.) 10. $1,970,000 in temporarily restricted net assets was expended for equipment, as provided for by the donor. The policy of Haven Hospital is to record all property, plant, and equipment as unrestricted. 11. In addition, $600,000 was received in pledges for temporarily restricted purposes. It was decided that the allowance for contributions was sufficient. 12. Supplies were purchased in the amount of $690,000, on account. 13. Operating expenses (in addition to those already recorded in entries 1 and 9) for the year included: depreciation of $600,000; supplies used of $687,000; and salaries and benefits of $20,985,000 (paid in cash). In addition, the following expenses were recorded through Accounts Payable: utilities of $515,000 and insurance of $320,000. 14. Accounts payable were paid in the amount of $1,767,000. 15. Current installments of long-term debt were paid in the amount of $200,000. The portion to be paid next year is $300,000. Interest was paid in the amount of $181,000 and is reported as an operating expense. page 367 16. Investments, carried at a basis of $4,000,000, were sold for $4,050,000. The $50,000 gain is considered to be temporarily restricted. 17. Cash in the amount of $6,800,000 was invested. Of that amount, $95,000 was from Cash-Assets Whose Use Is Limited and is designated by the board for renewals and replacements (see entry 5). 18. A reading of the financial press indicated that investments increased in market value by $800,000. Of that amount, $250,000 was in investments designated by the board for renewals and replacements, $350,000 is required by donors to be added to endowment balances, and the remainder is unrestricted. 19. Closing entries were prepared. Required: a. Using the Excel template provided, prepare journal entries for each of the previous transactions. b. Prepare a Statement of Operations for Haven Hospital for the year ended December 31, 2017. c. Prepare a Statement of Changes in Net Assets for Haven Hospital for the year ended December 31, 2017. d. Prepare a Statement of Financial Position for Haven Hospital as of December 31, 2017. c. Prepare a Statement of Cash Flows for Haven Hospital for the year ended December 31, 2017, using the indirect method. 12-10. Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2017, are summarized in the T-account. BALANCE SHEET ACCOUNTS December 31, 2016 December 31, 2017 Debits Cash $1,700,000 $2,895,700 Patient Accounts Receivable (net) 510,000 592.800 Third-Party Accounts Receivable (net) 1,190,000 1,383,200 Contributions Receivable 10.000 12.500 1,500,000 4,875,000 1,620,000 5,182,000 InvestmentsEndowment Property, Plant, and Equipment Credits Accumulated Depreciation Accounts Payable Long-Term Debt Net AssetsDecember 31, 2016 Net AssetsDecember 31, 2017 2,107,000 37,500 2,282,000 5,358,500 2,567,000 46,200 2,782,000 6,291,000 ACTIVITY ACCOUNTS December 31, 2017 Debits Contractual Adjustments Provision for Uncollectible Accounts Operating ExpensesDepreciation Operating ExpensesSalaries Operating ExpensesSupplies Reclassification from Temporarily Restricted Net Assets (Time Restrictions) Net Losses on Investments-Permanently Restricted $1,100,000 33,500 460,000 6,000,000 2,200,000 19,600 10,000 Credits Patient Service Revenue(patient portion) Unrestricted Patient Service Revenue(third-party portion) Unrestricted Income on EndowmentsUnrestricted Reclassification to Unrestricted Net Assets Contribution RevenueUnrestricted Contribution RevenueEndowment Contribution Revenue Temporarily Restricted for Future Years 3,156,000 7,364.000 25,000 19,600 36,000 130,000 25,000 CASH (2017) Beginning balance January 1 $1,700,000 Collections from patients 3,039,700 $6,000,000 Salaries Collections from third parties 6,070,800 2,191,300 Operating expenses Contributions to endowment 130,000 Other contributions 58,500 307,000 Equipment purchases Investment income 25,000 100,000 Payment principal LT debt ProceedsLT debt 600.000 130,000 Purchase endowment investments Ending balance December 31 $2,895,700 The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold Required: The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold. Required: Using the information above and the Excel template provided, prepare: a. A Statement of Operations and a Statement of Changes in Net Assets for the year ended December 31, 2017 b. Statements of Cash Flow assuming 1. Monterey Hospital is a private not-for-profit. 2. Monterey Hospital is a government-owned hospital. 129. As of January 1, 2017, the trial balance for Haven Hospital was as follows: Debits _ Credits Cash $ $30,000 Patient Accounts Receivable 3,250,000 Allowance for Uncollectible Patient Accounts Receivable $ 650,000 Contributions Receivable 2,480,000 Allowance for Uncollectible Contributions Receivable 353,000 Supplies 130,000 Investments-Board Designated 1,700,000 InvestmentsOther 10,100,000 Property, Plant, and Equipment 7,500,000 Accumulated Depreciation- Property, Plant, and Equipment 4,600,000 Accounts Payable 600,000 Long-Term DebtCurrent Installment 200,000 Long-Term Debt-Noncurrent 3,100,000 Net AssetsUnrestrictedBoard Designated 1,700,000 Net AssetsUnrestrictedUndesignated 1,644,000 Net AssetsTemporarily Restricted Net AssetsPermanently Restricted Totals 6,136,000 7,007,000 $25.990,000 $25,990,000 During the fiscal year ended December 31, 2017, the following transactions occurred: 1. Patient service revenue amounted to $20,990,000, all recorded on account. Contractual adjustments were recorded in the amount of $3,800,000. Uncollectible accounts are estimated to be $620,000. Cash was received on account in the amount of $17,600,000 2. Other revenue (cafeteria, parking lot, etc.) amounted to $2,580,000, all received in cash. page 366 3. Patient accounts in the amount of $430,000 were written off. 4. Unrestricted gifts and bequests were received in cash in the amount of $317,000. Unrestricted income on investments of endowment funds amounted to $400,000. (It is the hospital's practice to treat unrestricted gifts as nonoperating revenue.) 5. Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $95,000 and was received in cash. Do not increase board-designated net assets at this stage, but close out the revenue account to board-designated net assets in entry 19. 6. Investment income, restricted for donor-specified purposes, was received in cash in the amount of $250,000. Investment income, required by donor agreement to be added to endowment balances, was received in cash in the amount of $100,000. 7. Cash contributions were received in the following amounts: $2,001,000 for current restricted purposes, $2,450,000 for future plant expansion, and $1,050,000 required by the donor to be invested permanently in an endowment. 8. Pledges receivable in the amount of $2,100,000 were received in cash. These pledges were on hand at the beginning of the year (reflected in temporarily restricted net assets, for purposes of time) and were unrestricted as to purpose. In addition, pledges for endowment purposes were collected in the amount of $450,000. 9. $1,550,000 in temporarily restricted net assets was expended, as the donors stipulated, for cancer research. Debit Operating ExpenseSalaries and Benefits, $1,400,000, and Operating ExpenseSupplies, $150,000. (Assume the supplies were purchased with cash and used in the same year.) 10. $1,970,000 in temporarily restricted net assets was expended for equipment, as provided for by the donor. The policy of Haven Hospital is to record all property, plant, and equipment as unrestricted. 11. In addition, $600,000 was received in pledges for temporarily restricted purposes. It was decided that the allowance for contributions was sufficient. 12. Supplies were purchased in the amount of $690,000, on account. 13. Operating expenses (in addition to those already recorded in entries 1 and 9) for the year included: depreciation of $600,000; supplies used of $687,000; and salaries and benefits of $20,985,000 (paid in cash). In addition, the following expenses were recorded through Accounts Payable: utilities of $515,000 and insurance of $320,000. 14. Accounts payable were paid in the amount of $1,767,000. 15. Current installments of long-term debt were paid in the amount of $200,000. The portion to be paid next year is $300,000. Interest was paid in the amount of $181,000 and is reported as an operating expense. page 367 16. Investments, carried at a basis of $4,000,000, were sold for $4,050,000. The $50,000 gain is considered to be temporarily restricted. 17. Cash in the amount of $6,800,000 was invested. Of that amount, $95,000 was from Cash-Assets Whose Use Is Limited and is designated by the board for renewals and replacements (see entry 5). 18. A reading of the financial press indicated that investments increased in market value by $800,000. Of that amount, $250,000 was in investments designated by the board for renewals and replacements, $350,000 is required by donors to be added to endowment balances, and the remainder is unrestricted. 19. Closing entries were prepared. Required: a. Using the Excel template provided, prepare journal entries for each of the previous transactions. b. Prepare a Statement of Operations for Haven Hospital for the year ended December 31, 2017. c. Prepare a Statement of Changes in Net Assets for Haven Hospital for the year ended December 31, 2017. d. Prepare a Statement of Financial Position for Haven Hospital as of December 31, 2017. c. Prepare a Statement of Cash Flows for Haven Hospital for the year ended December 31, 2017, using the indirect method. 12-10. Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2017, are summarized in the T-account. BALANCE SHEET ACCOUNTS December 31, 2016 December 31, 2017 Debits Cash $1,700,000 $2,895,700 Patient Accounts Receivable (net) 510,000 592.800 Third-Party Accounts Receivable (net) 1,190,000 1,383,200 Contributions Receivable 10.000 12.500 1,500,000 4,875,000 1,620,000 5,182,000 InvestmentsEndowment Property, Plant, and Equipment Credits Accumulated Depreciation Accounts Payable Long-Term Debt Net AssetsDecember 31, 2016 Net AssetsDecember 31, 2017 2,107,000 37,500 2,282,000 5,358,500 2,567,000 46,200 2,782,000 6,291,000 ACTIVITY ACCOUNTS December 31, 2017 Debits Contractual Adjustments Provision for Uncollectible Accounts Operating ExpensesDepreciation Operating ExpensesSalaries Operating ExpensesSupplies Reclassification from Temporarily Restricted Net Assets (Time Restrictions) Net Losses on Investments-Permanently Restricted $1,100,000 33,500 460,000 6,000,000 2,200,000 19,600 10,000 Credits Patient Service Revenue(patient portion) Unrestricted Patient Service Revenue(third-party portion) Unrestricted Income on EndowmentsUnrestricted Reclassification to Unrestricted Net Assets Contribution RevenueUnrestricted Contribution RevenueEndowment Contribution Revenue Temporarily Restricted for Future Years 3,156,000 7,364.000 25,000 19,600 36,000 130,000 25,000 CASH (2017) Beginning balance January 1 $1,700,000 Collections from patients 3,039,700 $6,000,000 Salaries Collections from third parties 6,070,800 2,191,300 Operating expenses Contributions to endowment 130,000 Other contributions 58,500 307,000 Equipment purchases Investment income 25,000 100,000 Payment principal LT debt ProceedsLT debt 600.000 130,000 Purchase endowment investments Ending balance December 31 $2,895,700 The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold Required