Accounting for Governmental and Nonprofit Entities 15th Edition by Earl Wilson,Jacqueline Reck,Susan Kattelus

تمرين 6

Breyer Memorial Hospital received a $100,000 gift that was restricted by the donor for heart research.At fiscal year-end Breyer had incurred $25,000 in expenses related to this project.Explain how these transactions would be reported in Breyer's balance sheet and operating statement under the independent assumptions that Breyer is ( a ) a government hospital and ( b ) a not-for- profit hospital.Would your answer change if the gift was based on cost-reimbursement as opposed to a purpose restriction