Statement of operations—Nongovernmental not for profit health care organization
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 affi liate |
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 fi xed asset purchases |
300,000 |
|
Restricted donations for specifi c 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.