Question

1. You have created a not-for-profit hospital and are recording the transactions for the first year. Here are the first 29 recorded transactions:

Transactions for the year 2019:

1.) Jan 1st The hospital raised $300,000 from a breast cancer fundraiser.

2.) Jan 6th The hospital received pledges of gifts in the amount of 18,000 to be used at the board of trustees

3.) Jan 14th The hospital expects that 15 percent of the pledges will not be collected.

4.) Jan 18th.Of the pledges received in Transaction 2, the Hospital collected 10,000 in cash.

5.) Feb 1st The hospital billed patients $80,000 after providing health care services to them. The hospital expects that 5 percent of the bills will not be collected.E

6.) Feb 12th Issued bonds, $50,000, to purchase new equipment.

7.) Feb 17th The hospital issued purchased the new equipment for $50,000 by using the money issued by the bonds.

8.) Feb 24th The hospital recorded a depreciation expenditure for this year. The new equipment can be used for 10 years and the salvage value is $2,000.

9.) Feb 29th Billed Dan Cinrick $75,000 for services. The hospital expects to be paid in full in 1 month.

10.) March 1st. Collected the bill payment from Feb 1st.

11.) March 8th. Received a donation in cash from Ray Bees for $200,000.

12.) March 14th. Purchased supplies for $45,000 cash.

13.) March 26th. Paid 10,000 cash for donation advertisement.

14.) March 29th. Collected $75,000 from Feb 29th transaction.     

15.) April 2nd. Contracted a specialty worker to remove asbestos from Hospital service room at a flat rate of $8,000 to be paid when completed.

16.) April 8th. Received anonymous donation for $10,000 cash

17) April 18th. Issued check for $50,000 for medical maintenance expense

18) April 25th. Purchased a new EMG scanner for $10,000

19) May 2nd. Sold old inventory to a recycling company for $5,000

20) May 13th. Renovated Cafeteria for $300,000

21) May 20th. Held a Bike for Cancer Fundraiser that raised $50,000

22) June 1st. Lebron donates $30,000 for disabled athlete program

23) June 7th. Purchased 100 wheelchairs for $5,000

24) June 12th. Painted childrens infirmary for $600

25) Aug 1st Received donation of $100,000 into the Jef Wooster Fund for the oncology department (Restricted Fund)

26) Aug 12st Received $700,000 in funds from Ministry of Health and Long-Term Care of Ontario

27) Sept 3rd billed patients for services amounting to $13,000 to be paid next month

28) sept 17th Received $1,900 into the Endowment Fund

29) oct 3rd Got paid for patient services for the bill issued on Aug 12th.

a) Create a statement of changes in net assets for all 29 entries (whole year)

Answer 1

Date	Particulars	$	$
Jan 1st	Accumulated fund		300000
Jan 6th	Received pledge of gifts		18000
Jan 14th	15% Pledges will not be collected	2700
Feb 1st	Bills Raised by hospital		80000
	Out of bills raised 5% will not be collected	4000
Feb 12th	Bonds issued to purchase new equipment	50000
Feb 17th	Purchased new equipment		50000
Feb 14th	Depreciation on new equipment	4800
	(50000-2000)/10
Feb 29th	Bill raised to Dan Cinrick		75000
Mar 8th	Received donation in cash		200000
Mar 14th	Purchased supplies	45000
Mar 26th	Paid donation advt	10000
Apr 2nd	Contract expenses	8000
Apr 8th	Received donations		10000
April 18th	Paid medical maintainance expenses	50000
Apr 25th	Purchased ECG Scanner	10000
May 2nd	Sold old inventory		5000
May 13th	Cafateria renovation expenses	300000
May 20th	Held bike that collect revenue		50000
June 1st	Donates to disabled athlete	30000
June 7th	Purchased 100 wheelchairs	5000
June 12th	Painted children infirmary	600
Aug 1st	Received donation from jef wooster fund		100000
Aug 12th	Received donation from ministry of health		700000
Sep 3rd	Billed for patient		13000
Sep 17th	Received from endowment fund		1900
Total		1602900	1602900