Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of
Question:
Additional Information
1. Your analysis of the contributions receivable as of December 31, 20X4, determined that there were unrecognized contributions for the following:
Unrestricted use .............. $ 40,000
Cancer research ................ 10,000
Purchase of equipment ............. 20,000
Permanently restricted endowment principal ... 30,000
Total ..................... $100,000
2. Short-term investments at year-end consist of $150,000 of unrestricted funds and $50,000 of funds restricted for future cancer research. All of the long-term investments are held in the permanently restricted endowment fund.
3. Land is carried at its current market value of $120,000. The original owner purchased the land for $70,000, and at the time of donation to the hospital, it had an appraised value of $95,000.
4. Buildings purchased 11 years ago for $600,000 had an estimated useful life of 30 years. Equipment costing $150,000 was purchased 7 years ago and had an expected life of 10 years. The controller had improperly increased the reported values of the buildings and equipment to their current fair value of $935,000 and had incorrectly computed the accumulated depreciation.
5. The board of directors voted on December 29, 20X4, to designate $100,000 of unrestricted funds invested in short-term investments for developing a drug rehabilitation center.
Required
Prepare in good form a balance sheet for Brookdale Hospital at December 31,20X4.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker