Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of directors decided to conduct a major fund-raising campaign. They wished to have the December 31, 20X4, 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: Debit Credit Cash $ 181,488 Investment in Short-Tern Marketable Securities 281,388 Investment in Long-Term Marketable Securities 389,280 Interest Receivable 15,500 Accounts Receivable 56,600 Inventory 36,500 Land 121,588 Buildings & Equipment 936, 680 Allowance for Depreciation $ 259,280 Accounts Payable 41,388 Mortgage Payable 320,400 Fund Balance 1,149,280 Total $1,770, 180 $1,770, 180 Additional Information: 1. Your analysis of the contributions recelvable as of December 31, 20X4, determined that there were unrecognized contributions for the following: Unrestricted use Cancer research Purchase of equipment Permanently restricted endowment principal Total $ 40,880 11,480 20,980 31,560 $104,620 2. Short-term Investments at year-end consist of $151.800 of funds without donor restrictions and $50.000 of funds restricted for future cancer research. All of the long-term Investments are held in the permanently restricted endowment fund. 3. Land is carried at its current market value of $121.500. The original owner purchased the land for $71,800, and at the time of donation to the hospital. It had an appraised value of $95,700. 4. Buildings purchased 11 years ago for $610,500 had an estimated useful life of 30 years. Equipment costing $152.400 was purchased 7 years ago and had an expected life of 10 years. The controller had Improperly increased the reported values of the buildings and equipment to their current fair value of $936,600 and had Incorrectly computed the accumulated depreciation. 5. The board of directors voted on December 29, 20X4. to designate $101,900 of funds without donor restrictions Invested in short- term Investments for developing a drug rehabilitation center. Required: Prepare a balance sheet for Brookdale Hospital at December 31, 20X4. (Amounts to be deducted should be indicated with minus slgn.) BROOKDALE HOSPITAL Balance Sheet December 31, 20X4 Assets Current Assets: S 0 Total current assets Long-term assets Net investment in buildings and equipment S 0 Total long-term assets Total assets Liabilities 0 0 S S 0 Total liabilities Net assets Total net assets 0 0 Total liabilities and net assets S
