Case Study : Nonprofit Hospital Accounting Equation (6 Points) The expanded accounting equation for a nonprofit is as follows: Assets = Liabilities + Net assets + Revenues Expenses Assignments and Questions 1. Review the list of transactions in the form below. Using accrual accounting, based on generally accepted accounting principles (GAAP), indicate all financial effects of each transaction on the expanded accounting equation. Place plus (+) or minus (-) amounts in the appropriate cells. Transaction Assets Liabilities Net Assets Revenues Expenses 1. Hospital borrowed $5 million from bank. 2. Hospital purchased $2 million of supplies on account. 3. 50% of the supplies in transaction #2 were subsequently used for patient care. 4. Hospital billed patients $10 million for services provided. 5. Hospital paid employees $3 million wages. 6. Hospital collected $7 million for services billed in #4. 7. Hospital paid $2 million to suppliers for supplies purchase in #2. 8. Hospital paid bank back $1 million of loan plus $100,000 of interest. 9. Hospital paid utility bills of $1 million. 10. Hospital recorded $3 million of depreciation on equipment. Totals 2. What is the net income?