The following selected items were taken from the accounts of Hometown Memorial Hospital, a not-for profit hospital, at December 31, 2016:

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 for the year ending December 31, 2016. 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.