Revenue and Related Transactions. During its current fiscal year, Dearborn General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).

1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care, $928,000 was paid by uninsured patients, and $8,222,000 was billed to Medicare, Medicaid, and insurance companies.

2. Pharmaceutical drugs sold by the hospital pharmacy amounted to $970,000, all of which was paid by customers or insurance.

3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).

4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.

5. A total of $840,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; unrestricted transfers from the Dearborn General Hospital Foundation, $75,000; and fees for medical transcripts, $55,000.

6. The allowance for uncollectible receivables was increased by $1,200.

Required

a. Record the preceding transactions in general journal form.

b. Prepare the unrestricted revenues, gains, and other support section of Dearborn General Hospital’s statement of operations for the current year, following the format in Illustration 17-4.

c. On which statement would restricted contributions be reported? Explain.