The Edwards Lake Community Hospital balance sheet as

of December #6840
The Edwards Lake Community Hospital balance sheet as of December 31, 2016,
follows.Requireda. Record in general journal form the effect of the following transactions during
the fiscal year ended December 31, 2017, assuming that Edwards Lake Community Hospital is
a not-for-profit hospital.(1) Information related to accrual of revenues and gains is as follows:
Patient services revenue, gross................................................ $3,500,900Charity
care........................................................................... 211,260Contractual adjustments to patient
service revenues........................... 1,520,000Other operating
revenues........................................................... 998,750(2) Cash received includes:Interest on
investments in Assets Limited as to Use............................. 7,350Collections of
receivables........................................................... 2,960,600(3) Expenses of $891,000 were
recorded in accounts payable and $1,454,390 in accrued payroll. Since some of the nursing
expenses met a temporary net asset restriction, $94,000 was released from temporary
restrictions.Administration expenses........................................................ 446,480General
services expenses....................................................... 524,360Nursing services
expenses....................................................... 1,031,800Other professional services
expenses............................................ 342,750(4) Cash paid includes:Interest expense
(allocated half to nursing servicesand half to general
services)....................................................... 280,000Payment on mortgage
principal................................................. 500,000Accounts payable for
purchases.................................................... 836,800Accrued
payroll....................................................................... 1,279,500(5) Interest of $1,180 accrued on
investments in Assets Limited as to Use.(6) Depreciation charges for the year amounted to
$117,000 for the buildings and $128,500 for equipment. Depreciation was allocated 45 percent
to nursing services, 15 percent to other professional services and 20 percent to each
administrative and general service.(7) Other information:(a) Provision for uncollectible
receivables was determined to be adequate.(b) Supplies inventory balances:(c) Portion of
mortgage payable due within one year, $500,000.(8) A $663 unrealized loss on investments
occurred.(9) Nominal accounts were closed. Necessary adjustments were made to increase the
Net Assets-Unrestricted, Designated for Plant.b. Prepare a balance sheet as of December 31,
2017.c. Prepare a statement of operations for the year ended December 31, 2017.d. Prepare a
statement of cash flows for the year ended December 31, 2017.View Solution:
The Edwards Lake Community Hospital balance sheet as of December

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