Question

Miss Jenny Russ donated $3,000,000 to Broadus Memorial Hospital, a county hospital, on June 17, 20X8.
1. Assume that no restrictions are placed on the use of the donated resources.
a. Prepare the required June 17, 20X8, entry.
b. Prepare any entries necessary in 20X9 if $400,000 of the gift is used to finance hospital operating expenses.
2. Assume that the donation was restricted to leukemia research.
a. Prepare the required June 17, 20X8, entry.
b. Prepare any entries required in 20X9 as a result of spending $400,000 for leukemia research during 20X9.
3. Assume that the donation was restricted for use in adding a pediatrics intensive care unit to the hospital.
a. Prepare the required June 17, 20X8, entry.
b. Prepare any entries required in 20X9 if $400,000 of the gift is used to begin constructing the intensive care unit.

Required
a. Explain or illustrate how each of the three situations described previously would be reported in Broadus Memorial Hospital’s financial statements in 20X8 and in 20X9. Include the effect of each transaction on the amounts reported in the various net position categories in your explanation.
b. Repeat items 2 and 3 under the assumption that the hospital received a $3,000,000 government reimbursement-type grant instead of a donation.



$1.99
Sales0
Views60
Comments0
  • CreatedOctober 25, 2014
  • Files Included
Post your question
5000