Question: Following is a list of transactions and events that may

Following is a list of transactions and events that may occur in private, not-for-profit entities. Indicate where each transaction or event should be reported on the entity’s statement of cash flows. Assume that the indirect method of reporting operating activities is used. If a transaction or event is reported as an adjustment to the change in net assets in the operating activities section, your answer should indicate whether the adjustment is added to or subtracted from the change in net assets. If a transaction or event is reported in more than one section on the statement of cash flows, you should include all sections in your answer.
Sample Question
A hospital recorded depreciation expense for the year of $50,000.
Report the depreciation expense of $50,000 as an addition to the change in net assets in the operating activities section.

Transactions and Events
1. A hospital’s accounts receivable from patients increased $100,000 during the year.
2. A college received a $200,000 contribution that the donor restricted to acquiring fixed assets.
3. A voluntary health and welfare organization received $25,000 from a donor who stipulated that the amount be invested permanently.
4. A hospital’s accounts payable for the purchase of medical supplies increased $20,000 during the year.
5. A botanical society borrowed $70,000 from First National Bank on a long-term note payable.
6. A professional trade association invested $50,000 to acquire investments in bonds that it intends to keep until their maturity.
7. A college received investment income of $45,000 from endowment investments. The donor stipulated that the income be used for the acquisition of fixed assets.
8. A hospital spent $850,000 to acquire equipment.
9. A college made loans of $100,000 to students and faculty.
10. A zoological society made a payment of $30,000 to a local bank to repay the principal of a short-term note payable.
11. A college’s accrued interest receivable related to student and faculty loans increased $5,000 during the year.
12. A performing arts organization had an increase of $12,000 in deferred revenue for the year.
13. A college received $100,000 for the repayment of principal on loans made to students and faculty.
14. A hospital’s prepaid assets increased $2,500 during the year.
15. A hospital’s endowment investments increased in value by $35,000 during the year.

Sale on SolutionInn
  • CreatedMay 23, 2014
  • Files Included
Post your question