A private,not-for-profit hospital expended $35,000 of net assets with donor restrictions to acquire equipment.What account should be debited in the hospital's plant replacement and expansion fund as a result of the acquisition of the equipment?

Question

Quizplus · Accepted Answer

Net Assets Released-Plant Acquisition is the correct account to be debited in the hospital's plant replacement and expansion fund as a result of the acquisition of the equipment. This account is used to record the release of donor restrictions when the restricted net assets are used to acquire capital assets.

A Private,not-For-Profit Hospital Expended $35,000 of Net Assets with Donor