1) Show entries in general journal form for the following transactions of Bothwe
ID: 2374132 • Letter: 1
Question
1) Show entries in general journal form for the following transactions of Bothwell Regional Hospital, a not-for-profit hospital.1) For the month just ended the hospital received in cash $8,000 from the hospital's gift shop sales, and received donated medicines with a fair value of $47,000. These medicines are of the type the hospital normally would purchase.
2) The hospital's finance officer, in compliance with the directive of the governing board, invested $600,000 of operating cash in certificates of deposit to be held for future purchases of equipment.
3) New fixed equipment costing $750,000 was purchased from money given the hospital in a prior year to be held until needed for equipment purchases.
4) A federal grant was received in cash in the amount of $400,000 to be used for heart research. During the current year only $50,000 was spent for this research program.
Explanation / Answer
Debit Credit Cash 8000 Gift shop revenue 8000 Medicines stock 47000 donations 47000 Deposits for purchase of equipments 600000 Cash 600000 New Fixed Equipments 750000 Liability against donations received earlier 750000 Cash 400000 Liability against Federal Grants 400000 Liability against Federal Grants 50000 Cash 50000 Please consider the time devoted by rating this as lifesaver. Thank u in advance. God bless u :)
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