Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10. Using the facts from the previous question (Q#9), during the year, the hospital used $400,000 of the cash contributions received to start construction of
10. Using the facts from the previous question (Q#9), during the year, the hospital used $400,000 of the cash contributions received to start construction of the new building. The hospital would record the following journal entry(ies): a) In the DONOR RESTRICTED FUND Debit Building $400,000; Credit Cash $400,000 In the DONOR RESTRICTED FUND: b) Debit Net Assets Released From Restriction $400,000; Credit Cash $400,000 AND In the UNRESTRICTED FUND: Debit Building $400,000; Credit Net Assets Released From Restriction $400,000 c) In the DONOR RESTRICTED FUND: Debit Building Payable $400,000; Credit Cash $400,000 In the DONOR RESTRICTED FUND d) Debit Net Assets Released From Restriction $400,000; Credit Cash $400,000 AND In the UNRESTRICTED FUND: Debit Building Expense $400,000: Credit Net Assets Released From Restriction $400,000 e) In the UNRESTRICTED FUND: Debit Building $400,000; Credit Cash $400,000 10. Using the facts from the previous question (Q#9), during the year, the hospital used $400,000 of the cash contributions received to start construction of the new building. The hospital would record the following journal entry(ies): a) In the DONOR RESTRICTED FUND Debit Building $400,000; Credit Cash $400,000 In the DONOR RESTRICTED FUND: b) Debit Net Assets Released From Restriction $400,000; Credit Cash $400,000 AND In the UNRESTRICTED FUND: Debit Building $400,000; Credit Net Assets Released From Restriction $400,000 c) In the DONOR RESTRICTED FUND: Debit Building Payable $400,000; Credit Cash $400,000 In the DONOR RESTRICTED FUND d) Debit Net Assets Released From Restriction $400,000; Credit Cash $400,000 AND In the UNRESTRICTED FUND: Debit Building Expense $400,000: Credit Net Assets Released From Restriction $400,000 e) In the UNRESTRICTED FUND: Debit Building $400,000; Credit Cash $400,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started