Response to the following problem:
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.