Given here is the preadjusted trial balance of Greatville Hospital at December 31, 20X1, the end of the hospital’s current fiscal year:

The following additional information is available:

1. The temporary investment consists of $15,000 (face value) of 8 percent bonds acquired by the hospital on October 1, 20X1. These bonds pay interest annually on October 1, commencing October 1, 20X2.

2. Of the December 31, 20X1, accounts receivable, it is estimated that 12 percent will eventually prove uncollectible by reason of (1) contractual adjustments, 5 percent; (2) charity care, 4 percent; and (3) bad debts, 3 percent.

3. A three-year insurance premium of $1,980 was paid in advance by the hospital on January 1, 20X1.

4. The hospital prepaid a year’s rent of $2,100 on June 1, 20X1.

5. On November 1, 20X1, the hospital borrowed $20,000 from a bank by issuing a six-month, 12 percent note. Interest on the note was prepaid.

6. The hospital building, which was acquired on January 1, 20X1, has an estimated useful life of 40 years and a salvage value of $15,000.

7. The equipment, which was acquired on January 1, 20X1, has an estimated useful life of eight years and a 10 percent salvage value.

8. On April 1, 20X1, the hospital issued $100,000 of 15-year, 6 percent bonds at face value. These bonds pay interest annually on April 1, commencing April 1, 20X2.

9. Unpaid salaries and wages at December 31, 20X1, totaled $15,600.

10. The hospital received one year’s rent of $1,680 in advance on March 1, 20X1.

11. On September 1, 20X1, the hospital received nine months’ tuition in advance in connection with one of its educational programs.

Required: (1) Prepare a worksheet to develop financial statements in the manner illustrated in Figure 8.3. (2) Prepare, in good form, a complete set of financial statements for 20X1.