Question

Record the following transactions on the books of Hope Hospital, which follows FASB (not-for-profit) and AICPA standards. The year is 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Hope received $69,000 in cash from pledges made in the previous year that were unrestricted as to purpose but intended to be received and expended in 2020.
2. Hope received $113,000 in pledges that indicated the money would be received in 2021. The donors imposed no restrictions other than it could be used for any purpose desired by the board.
3. Hope expended $64,000 for nursing training, using $58,000 of donor restricted resources received in 2019 for that purpose.
4. On June 15, 2020, Hope was awarded a $75,000 grant for cancer research by the U.S. Department of Agriculture. During 2020, Hope had qualified expenses under the grant totaling $55,000. This is cost reimbursement, grant.
5. Hope received $306,000 in cash. The board decided to invest the funds for future plant expansion.

Complete the Journal entrys.

1aHope received $69,000 in cash from pledges made in the previous year that were unrestricted as to purpose but intended to be received and expended in 2020. Record the cash from the pledges made in the previous year.

1bHope received $69,000 in cash from pledges made in the previous year that were unrestricted as to purpose but intended to be received and expended in 2020. Record the reclassification of the pledges received in the previous year.

02Hope received $113,000 in pledges that indicated the money would be received in 2021. The donors imposed no restrictions other than it could be used for any purpose desired by the board.

3aRecord the expense on nursing training.

3bRecord the transfer from donor restricted resources that had been given in 2019 for the purpose of nurse training.

4aOn June 15, 2020, Hope was awarded a $75,000 grant for cancer research by the U.S. Department of Agriculture.

4bDuring 2020, Hope had qualified expenses under the grant totaling $55,000.

4cRecord the expenses reimbursed under the grant totaling $55,000.

5aRecord the receipt in cash.

5bRecord the investment of the funds for future plant expansion.

5cRecord the demarcation of net assets-unrestricted for plant expansion.

Answer 1

As required in the question to pass journal entries:

HOPE HOSPITAL

                                                            Journals

Date               Account Name Debit Credit

                                                                                                    Amount ($) Amount ($)

1a.	Cash                                                                                 Dr.                69,000
	Income from pledge A/c Cr.	69,000
	(Being cash received from pledges made in previous year to be expended in current year)
1b.	Since no information of the same being expended is mentioned, no journal entry.
2.	Income Receivable (Pledges from Donors)                     Dr.                113,000
	Donation A/c                                                                    Cr.	113,000
	(Being money receivable in 2021 from donors)
3a.	Nursing Training Expense                                                Dr.                 64,000
	Cash                                                                                  Cr.	64,000
	(Being money expended on nursing training)
3b.	Since no information of the same being expended is mentioned, no journal entry.
4a.	June 15, 2020 Being Only Grant Received for cancer research, no journal entry.
4b.	Cancer Research                                                             Dr.               55,000 Cash                                                                                Cr.                                                                           (Being amount incurred for cancer research)	55,000
4c.	US Department of Agriculture                                        Dr.               55,000 Cancer Research Cr.          (Being amount recoverable under grant from US Department of agriculture)	55,000
5a.
5a.	Cash      Dr.                  306,000 Donation                                                                        Cr.	306,000
	(Being Cash received as donation)

5b.	Since no information of the investment of funds is mentioned, no journal entry.

5c.	No journal entry