The organization’s governing board announced that $160,000 in previously unres
ID: 2372371 • Letter: T
Question
The organization’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs.
Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries.
Estimated that $20,000 of current accounts receivable from patients will not be collected and that third-party payors will reduce the amounts owed by $30,000 because of contractual adjustments.
Sold the investments acquired in (a) for $172,000. Spent all restricted cash (including [f] above) and $25,000 that previously had been given to the organization (with the stipulation that the money be used to acquire plant assets) for new equipment. No time restriction was assumed on this equipment.
Received pledges for $126,000 in unrestricted donations. Of the pledges, 10 percent are collected immediately with 90 percent to be received and used in future years. Officials estimate that $9,000 of this money will never be collected. Present value of the receivable is $98,000.
Record each of these transactions in appropriate journal entry form.
Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.
A local private not-for-profit health care entity incurred the following transactions during the current year.Explanation / Answer
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