Question 1:

Fat hospital received in cash rental payments of $10,700 during 20X2. Its balance sheets reported deferred rental income as follows:

12/31/X2 $2,600

12/31/X1 $1,800

what amount should be reported as rental income in Fat hospital's 20X2 statement of operations?

Question 2:

Flabby hospital received interest payments of $8,600 during 20X2. Its balance sheets reported accrued interest receivable as follows:

12/31/20X2 $1,100

12/31/20X1 $1,400

what amount should be reported as interest income in the hospital's 20X2 statement of operations?

Question 3:

Favor hospital invested $60,000 in 8 percent government bonds on August 1, 20X2. These bonds, which were purchased at face value, pay interest annually on August 1, commencing August 1, 20X2.

Assuming that adjustments are made annually on December 31 only, prepare the necessary adjusting entry for accrued interest as of December 31, 20X1.

Account and Explanation

Account Number

Debit

Credit