Marshfield Hospital is a private,not-for-profit hospital.The following transactions occurred:
1.Unrestricted cash gifts that were received last year,but designated for use in the current year,totaled $180,000.The cash gifts were used in the current year in accordance with restrictions.
2.Unrestricted pledges of $800,000 were received.Ten percent of the pledges typically prove uncollectible.Additional cash contributions during the year totaled $300,000.
3.Gifts in kind were received that were sold at a silent auction for $23,000.The fair value of the donated gifts in kind could not be reasonably determined.
4.Expenses were incurred and paid as follows: Salary of doctor,$190,000; facility rental,$36,000; purchases of supplies,$8,000; and utility costs,$10,000.
5.Marketable securities with a fair value of $650,000 were received as a donation with a stipulation that the hospital use the funds to purchase suitable land for the hospital.
Required:
Prepare journal entries for the aforementioned transactions.

Question

Quizplus · Accepted Answer

The Answer of Marshfield Hospital is a private,not-for-profit hospital.The following transactions occurred:
1.Unrestricted cash gifts that were received last year,but designated for use in the current year,totaled $180,000.The cash gifts were used in the current year in accordance with restrictions.
2.Unrestricted pledges of $800,000 were received.Ten percent of the pledges typically prove uncollectible.Additional cash contributions during the year totaled $300,000.
3.Gifts in kind were received that were sold at a silent auction for $23,000.The fair value of the donated gifts in kind could not be reasonably determined.
4.Expenses were incurred and paid as follows: Salary of doctor,$190,000; facility rental,$36,000; purchases of supplies,$8,000; and utility costs,$10,000.
5.Marketable securities with a fair value of $650,000 were received as a donation with a stipulation that the hospital use the funds to purchase suitable land for the hospital.
Required:
Prepare journal entries for the aforementioned transactions.

Marshfield Hospital Is a Private,not-For-Profit Hospital