The Edwards Lake Community Hospital balance sheet as of December 31, 2019, follows. Assets
Current assets:
Cash and Cash Equivalents $ 352,400
Accounts and notes receivable (net of uncollectible accounts of $16,500) 27,200
Inventory 82,200
Total current assets 461,800
Assets limited as to use:
Cash $ 17,840
Investments 232,720
Total assets limited as to use 250,560
Property, plant, and equipment:
Land 213,600
Buildings (net of accumulated depreciation of $1,623,700) 2,896,500
Equipment (net of accumulated depreciation of $1,025,200) 1,860,200
Total property, plant, and equipment 4,970,300
Total assets $ 5,682,660
Liabilities and Net Assets
Current liabilities:
Accounts payable $ 19,900
Accrued payroll 46,400
Current portion of mortgage payable 535,000
Total current liabilities 601,300
Long-term debt—mortgage payable 2,570,000
Total liabilities 3,171,300
Net assets:
Without donor restrictions
Undesignated 2,086,260
Designated for plant 249,860
With donor restrictions 175,240 2,511,360
Total liabilities and net assets $ 5,682,660

The following are the transactions of Edwards Lake Community Hospital during the fiscal year ended December 31, 2020.

(1) Information related to accrual of revenues and gains is as follows:

Patient services revenue, gross $ 3,501,600
Charity care 214,760
Contractual adjustments to patient service revenues 1,527,000
Other operating revenues 1,000,150

(2) Cash received includes

Interest on investments in Assets Limited as to Use 8,050
Collections of receivables 2,964,100

(3) Expenses of $894,500 were recorded in accounts payable and $1,458,590 in accrued payroll. Because some of the nursing expenses met a net asset restriction, $97,500 was released from restrictions.

Administration expenses 449,980
General services expenses 526,110
Nursing services expenses 1,032,500
Other professional services expenses 344,500

(4) Cash paid includes:

Interest expense (allocated half to nursing services and half to general services) $ 287,000
Payment on mortgage principal 535,000
Accounts payable for purchases 838,200
Accrued payroll 1,283,000

(5) Interest of $1,530 accrued on investments in Assets Limited as to Use.
(6) Depreciation charges for the year amounted to $120,500 for the buildings and $132,000 for equipment. Depreciation was allocated 45 percent to nursing services, 15 percent to other professional services and 20 percent to each administrative and general services.
(7) Other information:
(a) Provision for uncollectible receivables was determined to be adequate.
(b) Supplies inventory balances:

12/31/2019 12/31/2020
Administration $ 10,100 $ 8,700
General services 10,800 12,500
Nursing services 20,500 18,200
Other professional services 40,800 47,000
Totals $ 82,200 $ 86,400
(c) Portion of mortgage payable due within one year, $535,000.

(8) A $677 unrealized loss on investments occurred.
(9) Nominal accounts were closed. Necessary adjustments were made to increase the Net Assets—Without Donor Restrictions, Designated for Plant.

Required

a-1. Prepare journal entry for the preceding transactions during the fiscal year ended December 31, 2020, assuming that Edwards Lake Community Hospital is a not-for-profit hospital.

a-2. Prepare closing entries for the fiscal year ended December 31, 2020, assuming that Edwards Lake Community Hospital is a not-for-profit hospital.

b. Prepare a balance sheet as of December 31, 2020.

c-1. Prepare a statement of operations for the year ended December 31, 2020.

c-2. Prepare a statement of changes in net assets for the year ended December 31, 2020.

d. Prepare a statement of cash flows for the year ended December 31, 2020