The health center receives premium revenue from capitation agreements totaling $54,000..

The Fort Collins Health Center is a nongovernmental not-for-profit health care organization. During the current year, the following occurred:
1. Gross charges at established rates for services rendered to patients amounted to $102,300. The clinic had contractual adjustments with insurers and Medicare of $30,000. Bad debts are estimated at 2% of gross charges.
2. The health center receives premium revenue from capitation agreements totaling $54,000.
3. The center also receives revenue of $16,000 from the pharmacy housed in its building.
4. The center paid salaries and wages allocated to functional categories as follows: nursing services, $35,000; other professional services, $11,000; general services, $10,000; fiscal services, $2,000; and administrative services, $20,000.
5. The health center receives a federal grant for $12,000. The money must be used for medical equipment.
6. Supplies costing $13,000 were purchased during the month, and $6,700 in nursing supplies were used.
REQUIRED
Prepare journal entries to account for these transactions. Include net asset classifications, where applicable.

The health center receives premium revenue from capitation agreements totaling $54,000.