During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution.

1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,800,000. Contractual adjustments with third-party payers amounted to $465,000. and the hospital estimated implicit price concession would total 10,000.

2. Charity services, not included in transaction 1, would amount to $66,000, had billings been made at gross amounts.

3. Other revenues, received in cash, were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000.

4. Cash gifts for cancer research amounted to $26,000 for the year. During the year, $50,000 was expended for cancer research technicians’ salaries supporting the program identified by the donor (debit Operating Expense—Salaries and Benefits).

5. Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used.

6. During the year, the hospital received, in cash, unrestricted contributions of $42,000 and unrestricted income of $35,000 from endowment investments. (It is the hospital’s practice to treat unrestricted gifts as non-operating income.) 

7. New equipment, costing $152,000, was acquired using donor-restricted cash that was on hand at the beginning of the year.

8. An old piece of lab equipment that originally cost $50,000 and that had an un-depreciated cost of $10,000 was sold for $7,000 cash.

9. At the end of 2020, pledges received in the amount of $120,000 were received in the amount of $120,000. these are intended to be received and expanded in 2021.

10. Cash contributions were received from donor restricted for plant acquisition, $170,000. 

11. Bills were received for the following items:

Utilities $139,000 and Insurance 80,000. These will be paid in January of 2021.

12. Depreciation of plant and equipment amounted to $180,000.

13. Cash payments on accounts payable amounted to $168,000. Another $800,000 was expended on wages and benefits.

14. Cash collection of patient account receivable  amounted of $1,180,000. These were in settlement of patient accounts totaling $1,587,000. Contractual adjustment associated with these totaled $4000,000 and price concession totaled $7,000. 

15. Closing entries were prepared.

Required:

a. Record the transactions in the general journal of the Port Hudson Community Hospital.

b. Prepare, in good form, a Statement of Operations for the Port Hudson Community Hospital for the year ended December 31, 2020.

c. Prepare, in goods from, a settlement of changes in net assets for the port Hudson Community Hospital for the year ended December 31, 2020. Assume beginning net assets are $7,000,000.