The Vincent Community Hospital balance sheet as of December 31, 2013, follows.

Required

a. Record in general journal form the effect of the following transactions during the fiscal year ended December 31, 2014, assuming that Vincent Community Hospital is a not-for-profit hospital.

(1) Information related to accrual of revenues and gains is as follows:

Patient services revenue, gross                                                                                                             $3,500,900

Charity care                                                                                                                                                    107,500

Contractual adjustments to patient service revenues                                                                            162,000

Other operating revenues                                                                                                                             84,000

(2) Cash received includes:

Interest on investments in Assets Limited as to Use                                                                                   7,350

Collections of receivables                                                                                                                         3,520,600

(3) Expenses of $891,000 were recorded in accounts payable and $1,514,500 in accrued payroll:

Administration expenses                                                                                                                             421,600

General services expenses                                                                                                                          360,400

Nursing services expenses                                                                                                                          938,000

Other professional services expenses                                                                                                       685,500

(4) Cash paid includes:

Interest expense (allocated half to nursing services and half to other professional services)         280,000

Payment on mortgage principal                                                                                                                  500,000

Accounts payable for purchases                                                                                                                 936,800

Accrued payroll                                                                                                                                           1,579,500

Transfer to Assets Limited as to Use                                                                                                            30,000

(5) The following information also needs to be recorded for the assets limited as to use:

(a) $10,000 in CDs matured on which $590 in interest was earned.

(b) $30,000 was reinvested in CDs.

(c) $12,300 in equipment was purchased.

(6) Depreciation charges for the year amounted to $117,000 for the buildings and $128,500 for equipment. Depreciation was allocated 40 percent to nursing services, 30 percent to other professional services and 15 percent to each administrative and general services.

(7) Other information:

(a) Provision for uncollectible receivables was increased by $3,800.

The increase was allocated to administrative services.

(b) Supplies inventory balances:

(c) Portion of mortgage payable due within one year, $500,000.

(8) A $780 unrealized loss on investments occurred.

(9) Nominal accounts were closed.

(10) Reflecting the net increase in Assets Limited as to Use of $24,860 (see transactions 2, 4, 5, and 8), record the increase in Net Assets—Unrestricted, Designated for Plant Replacement.

b. Prepare a balance sheet as of December 31, 2014.

c. Prepare a statement of operations for the year ended December 31, 2014.

d. Prepare a statement of cash flows for the year ended December 31, 2014.

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VINCENT COMMUNITY HOSPITAL Balance Sheet December 31, 2013 Liabilities and Net Assets Assets Current: Current: 2$ Cash Accounts payable 65,000 65,000 Accounts and $ 140,000 Accrued payroll notes receivable 110,000 Less: Allowance for uncollectibles 12,000 128,000 Inventory 71,000 Total current assets Total current liabilities 264,000 175,000 Assets lirmited as to use: Long-term debt: Mortgage payable Cash 11,500 Investments 210,000 3,500,000 Total assets Total liabilities 3,675,000 limited as to use 221,500 Net assets: Property, plant, and equipment: Unrestricted, undesignated Unrestricted, designated for plant replacements 1,782,000 Land 208,000 Buildings, at cost 4,516,000 221,500 Less: Accumulated Total net assets 2,003,500 depreciation 1,506,000 3,010,000 Equipment, at cost 2,871,000 Less: Accumulated depreciation 896,000 1,975,000 Total property, plant, and equipment 5,193,000 Total liabilities and $5,678,500 Total assets $5,678,500 net assets