The following selected items were taken from the accounts of Hometown Memorial Hospital, a not-for-profit hospital, at December 31, 2011:

Debits

Administrative services............... $ 310,000

Contractual allowances................ 400,000

Depreciation.................... 200,000

Employee discounts................. 100,000

General services.................... 290,000

Loss on sale of assets.................. 50,000

Nursing services................... 1,000,000

Other professional services................. 500,000

Provision for bad debts................. 150,000

Credits

Donated medicine.............. ...... 300,000

Income from investment in affiliate............. 80,000

Patient service revenues................. 2,500,000

Television rentals to patients................ 50,000

Unrestricted donations............................... 200,000

Unrestricted income from investments of endowment funds... 270,000

Restricted donations for fixed asset purchases........ 300,000

Restricted donations for specific operating purposes....... 100,000

REQUIRED

Use the information given to prepare a statement of operations for Hometown Memorial

Hospital at December 31, 2011. Assume that $80,000 of expenses were for purposes for which restricted donations were available and that fixed assets costing $97,000 were purchased from donations restricted for their purchase.