A private,not-for-profit hospital received a cash contribution of $100,000 from Samantha Hicks on November 14,20X8.Ms.Hicks specified the money be used to acquire equipment.On December 31,20X8,the hospital had not expended any of Ms.Hicks' contribution.On the statement of changes in net assets for the year ended December 31,20X8,the hospital should report the contribution as a $100,000 increase in:

Question

Quizplus · Accepted Answer

The contribution of $100,000 is a restricted donation, as Ms. Hicks specified that the money should be used to acquire equipment. Therefore, the hospital should report this as an increase in net assets with donor restrictions on the statement of changes in net assets for the year ended December 31,20X8. The fact that the hospital has not yet expended any of the contribution does not affect how it should be reported.

A Private,not-For-Profit Hospital Received a Cash Contribution of $100,000 from Samantha