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3 Brookdale Hospital hired an inexperienced controller early in 204. Near the end of 204, the board of directors decided to conduct a major fund-raising
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Brookdale Hospital hired an inexperienced controller early in 204. Near the end of 204, the board of directors decided to conduct a major fund-raising campaign. They wished to have the December 31,204, statement of financial position for Brookdale fully conform with current generally accepted principles for hospitals. The trial balance prepared by the controller at December 31 , 20X4, follows Additional Information: 1. Your analysis of the contributions recelvable as of December 31,204, determined that there were unrecognized contributions for the following: 2. Short-term investments at year-end consist of $151,300 of funds without donor restrictions and $49,500 of funds restricted for future cancer research. All of the long-term investments are held in the permanently restricted endowment fund 3. Land is carrled at its current market value of $120,700. The original owner purchased the land for $70,700, and at the time of donation to the hospital, it had an appraised value of $96,900. 4. Bulldings purchased 11 years ago for $613,500 had an estimated useful life of 30 years. Equipment costing $152,100 was purchased 7 years ago and had an expected life of 10 years. The controller had improperly increased the reported values of the bulldings and equipment to their current fair value of $935,200 and had incorrectly computed the accumulated depreciation. 5. The board of directors voted on December 29,204, to designate $100,500 of funds without donor restrictions to be invested in short-term investments for developing a drug rehabilitation center. Required: Prepare a balance sheet for Brookdale Hospital at December 31, 204. Note: Amounts to be deducted should be Indlcated with minus sign. Note: Amounts to be deducted should be Indicated with minus signStep by Step Solution
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