uring 2017, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution. 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,800,000. Contractual adjustments with third- party payers amounted to $475,000. Charity services, not included in transaction 1, would amount to $66,000, had billings been made at gross amounts. 3. Other revenues, received in cash, were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000. 4. Cash gifts for cancer research amounted to $26,000 for the year. During the year, $50,000 was expended for cancer research technicians' salaries (debit Operating Expense-Salaries and Benefits). 5. Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used. 6. During the year, the hospital received, in cash, unrestricted contributions of $42,000 and unrestricted income of $35,000 from endowment invest- ments. (It is the hospital's practice to treat unrestricted gifts as nonoperat- ing income.) 7. New equipment, costing $152,000, was acquired using donor-restricted cash that was on hand at the beginning of the year. Port Hudson's policy is to record all equipment in the unrestricted net asset class