Boston Hospital had the following account balances on January 1, 2018:

Boston Hospital had the following account balances on January 1, 2018:

Boston Hospital 

Cash 

 $             2,360,000 

Accounts Receivable 

 $             5,000,000 

Prepaid 

 $             2,100,000 

Inventory 

 $             6,000,000 

Equipment 

 $          24,000,000 

Accumulated Depreciation 

 $        (14,400,000)

Investments in Stocks

 $        105,000,000 

Endowments 

 $          86,000,000 

Accounts Payable 

 $             6,500,000 

Interest Payable 

 $                            -   

Deferred Revenue 

 $             3,000,000 

Long Term Debt 

Permanently Restricted Net Assets 

 $          50,000,000 

Temporarily Restricted Net Assets 

 $          36,000,000 

Problem #1: Prepare the Balance Sheet at January 1, 2018 base on the trial balance above.  Based on the entries below, prepare the balance sheet at December 31, 2018

Problem 2: Record the adjusting journal entries in proper form for the following transactions 

1.    Boston Hospital provided services to patients of $4,000,000 throughout the year on account. Per agreement with the insurance company, 27% of revenue was not expected to be collected. At December 31, 2018, it was estimated that patients who were expected to pay $50,000 of the receivable were not going to pay.

2.    The equipment that Boston Hospital owned had a useful life of 10 years with no salvage value, record the adjusting entry at December 31, 2018.

3.    Included in the prepaid balance of $2,100,000 is a prepayment of 1,500,000 for 3 years of rent paid on January 1, 2018.  At December 31, 2018, what is the adjusting entry?

4.    Patients paid $1,750,000 in cash for services rendered in transaction #1

1. Boston Hospital has 250,000 shares of stock in New London Corporation.  On June 30, 2018, New London Corporation declared a cash