A private, not-for-profit hospital received a contribution of $40,000 on June 15, 20X8. The donor restricted the contribution to funding research activities currently being performed by the hospital. For the year ended December 31, 20X8, the hospital spent $30,000 of the contribution on research activities. The hospital expended the remaining $10,000 on research activities in January of 20X9.
Refer to the above information. On the statement of changes in net assets prepared for the year ended December 31, 20X8, the events described would

Question

Quizplus · Accepted Answer

The hospital spent $30,000 of the restricted contribution, leaving $10,000 still restricted for future use. Therefore, temporarily restricted net assets increase by the remaining $10,000.

A Private, Not-For-Profit Hospital Received a Contribution of $40,000 on June