The December 31, 2013, statement of nancial position of Mosholu Medical Center, a major urban hospital and

The December 31, 2013, statement of financial position of Mosholu Medical Center, a major urban hospital and research center, is shown as follows. All amounts are in thousands.

The following transactions and events occurred in 2014 (all dollar amounts in thousands):

a. The hospital provided $705,943 in patient care at standard rates. On average, it expects to collect approximately 75% ($529,457) of this amount, owing mainly to discounts by third-party providers. Further, it expects that 5% of the 75% ($26,473) will have to be written off as bad debts.

b. It collected $480,125 in patient accounts, and it wrote off $50,000 of bad debts.

c. It also provided $52,000 in charity care, which it never expected to collect.

d. It earned $15,040 in investment income, of which $10,080 is unrestricted and $4,960 is temporarily restricted.

e. It purchased plant and equipment of $242, all of which was paid for with restricted resources.

f. It charged depreciation of $29,262.

g. It received unrestricted pledges of $2,070 and temporarily restricted pledges of $120. It collectedalloftheunrestrictedpledgesand$100of the temporarily restricted pledges.

h. It earned other operating revenues (including those from auxiliary enterprises) of $135,000.

i. It incurred $430,650 in wages and salaries, of which it paid $425,000. The balance was accrued. It also incurred $200,000 in other operating expenses (including those of auxiliary enterprises), of which it paid $198,500. The balance was vouchered (and thereby credited to accounts payable).

j. It incurred and paid $210,200 in costs related to restricted contracts and grants (amounts that were not included in any other expense category). It was reimbursed for $206,800 and expects to be reimbursed for the balance in the future. In addition, it received $3,000 in advances on other grants.

k. The other operating expenses include insurance costs. However, under €˜€˜retrospective€™€™ insurance policies, the hospital anticipates having to pay an additional $3,500 in premiums.

1. Prepare journal entries to record the transactions. Be sure to indicate whether each entry affects unrestricted, temporarily restricted, or permanently restricted funds.

2. Prepare a statement of activities for 2014 and a statement of financial position as of December 31, 2014.

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Mosholu Medical Center Statement ofFinancial Position as of December 31, 2013 (in thousands) Unrestricted restricted restricted Assets: Current assets Cash Receivables for patient care 2,449 S 252 (S110,465 less allowance for contracual adjustments and doubtful accounts of $45,755) Other receivables Marketable securities Other current assets 64,710 13,059 109,085 27,853 217,156 11,343 61,691 17,133 Total current assets 73,286 17,136 Noncurrent assets Property plant and equipment (S512,184 less accumulated depreciation of $223,259) 288,925 11,522 300,447 $517,603 Other assets Total noncurrent assets Total assets 73,286 S17,136 Liabilities and net assets: Current liabilities Accounts payable Accrued wages and salaries S 55,960 56,942 112,902 Total current liabilities Noncurrent liabilities Long-term debt Deferred rvue and other noncurrent liabilities 292,370 96,609 388,979 01,881 15,722 $517,603 $10,323 10,323 10,323 62,963 $73,286 Total noncurrent liabilities Total liabilities Net assets $17,136 $17,136 Total liabilities and net assets