The December 31, 2017, Statement of Net Assets of Mosholu Medical Center, a major urban hospital and research center, is presented on page 655-656.

Mosholu Medical Center Statement of Net Assets as of December 31, 2017

The following transactions and events occurred in 2018:
1. The hospital received unrestricted pledges of $372,600 and temporarily restricted pledges of $216,000.
It collected all of the unrestricted pledges and $180,000 of the temporarily restricted pledges.
2. Cash gifts designated by donors for juvenile diabetes research amounted to $250,000 for the year. During the year, $200,000 was expended for juvenile diabetes research.
3. The total services provided by the hospital to all patients during the year amounted to $1,270,697 at the hospital's established billing rates. Based on the contracted rates with third-party payers, the hospital expects to collect approximately $889,488 (70 percent) of this amount. Due to current economic conditions, it expects that $133,423 (15 percent of the 70 percent) will have to be written off as bad debts.
4. It also provided $93,600 in charity care which it never expected to collect.
5. It collected $864,225 in patient accounts recorded in question 3.
6. It earned and fully collected other operating revenues from its parking garage of $1,000,000, cafeteria of $820,000, and gift shop of $610,000.
7. It earned $27,072 in investment income, of which $18,144 is unrestricted and $8,928 is temporarily restricted.
8. The hospital sold unrestricted marketable securities to hire a well-known cancer researcher. It received $600,000 from investments that had a fair value of $550,000 at the end of the prior fiscal year.
9. It purchased equipment for its new gastroenterology unit of $435,600, all of which was paid for by liquidating temporarily restricted marketable securities.
10. It charged depreciation of $526,716.
11. Supplies were purchased in the amount of $800,000, all on account.
12. It incurred $775,170 in wages and salaries, of which it paid $1,765,000. The balance was accrued. It also incurred $860,000 in other operating expenses (including those of auxiliary enterprises), of which it paid $797,750. The balance was vouchered (and thereby credited to accounts payable).
13. Other operating expenses for the year include insurance costs. However, under "retrospective" insurance policies, the hospital anticipates having to pay an additional $6,300 in premiums.
14. It incurred and paid $378,360 in costs related to contracts (an exchange transaction). It was reimbursed for $372,240 and expects to be reimbursed for the balance in the future. In addition, it received $5,400 in advances on other contracts.
a. Prepare journal entries to record the transactions. Be sure to indicate whether each entry would affect unrestricted, temporarily restricted, or permanently restricted fund types.
b. Prepare a statement of operations for 2018 and a statement of financial position as of December 31, 2018.

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Unrestricted Restricted Current assets $ 5,878 155,304 S 605 Receivables for patient care (S265,116 less allowance for contractual adjustments and doubtful accounts of $109,812) Other receivables Marketable securities Other current assets 31,342 561,804 27,223 448,058 41,119 Total current assets 521,174 Noncurrent assets Property, plant, equipment ($1,229,242 les accumulated depreciation of $535,822) 693.420 Other assets Total noncurrent assets Total assets $1.242.247 4 75,886 S41 126 Liabilities and net assets Current liabilities Accounts payable Accrued wages and salaries S 134,304 Total current liabilities Noncurrent liabilities Long-term debt Deferred revenue and other noncurrent liabilities $701,688 Total noncurrent liabilities Total liabilities $1,204,514 Net assets 37.733 S475.886 S 475.886 41.126 $ 41,126 Total liabilities and net assets