Question: The December 31 2013 statement of nancial position of Mosholu

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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