A private,not-for-profit hospital received contributions of $50,000 from donors on June 15,20X9.The donors stipulated that their contributions be used to purchase equipment for the hospital.As of June 30,20X9,the end of the hospital's fiscal year,$12,000 of the contributions had been spent on equipment acquisitions.In the hospital's general fund,what account would be credited to recognize the release of the restrictions on the temporarily restricted contributions used to acquire equipment?

Question

Quizplus · Accepted Answer

Net assets released from equipment acquisition restriction is the account that would be credited to recognize the release of the restrictions on the temporarily restricted contributions used to acquire equipment. This is because when the equipment is acquired, the restrictions on the contributions are released, and the net assets in the temporarily restricted account become available for general use. The other options are not applicable in this scenario.

A Private,not-For-Profit Hospital Received Contributions of $50,000 from Donors on June