Whitt Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital's calendar year ending December 31, 2019, prepare (I) journal entries to record the transactions listed in 1 through 14 below, (II) a trial balance based on your entries and the beginning balances listed at 15 below, and (III) a Statement of Operations and a Statement of Changes in Net Assets for the hospital.

1.Third-parties payers and direct-pay patients were billed $6,500,000 at the hospital's established billing rates

2.The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients

3.The hospital estimated contractual adjustments for the year of $1,600,000

4.The hospital originally estimated uncollectible amounts from direct-pay patients to be $250,000 (recall that original estimated uncollectible amounts reduce revenue; only estimates specific to an individual patient are reported as bad debt expense).

5.The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000

6.The hospital received payments from third-party payers and direct-pay patients totaling $3,500,000

7.The hospital received contributions of $1,100,000 that were restricted by donors for building a new urgent care wing

8.The hospital paid salaries and wages of $4,500,000 in cash; these amounts are reported as patient care expense

9.The fair value of investments required to be held in perpetuity increased by $25,000

10. The hospital received cash from interest and dividend income of $10,000 on investments without donor restrictions

11. The hospital used $1,375,000 of net assets with donor restrictions to construct a new urgent care wing, consistent with the restrictions created by the donors

12. The hospital reported depreciation expense of $475,000

13. The hospital used drug inventories of $365,000

14. The hospital incurred other operating costs for patient care of $275,000 on credit

15. The hospital's beginning of the year trial balance at January 1, 2019 was as follows:

Whitt Valley Presbyterian Hospital

Trial Balance

As of January 1, 2019

Without Donor Restrictions With Donor Restrictions

Debit Credit Debit Credit

Cash $1,485,000 $401,600

Investments 153,000 40,000

Patient accounts receivable 250,000

Inventorydrugs 401,000

Property, plant, and equipment 4,400,000

Accumulated depreciation $600,000

Accounts payable 21,000

Net assets, January 1, 2019 - 6,068,000 - $441,600

$6,689,000 $6,689,000 $441,600 $441,600