Question

Required: Record the following transactions on the books of Hope Hospital, which follows FASB (not-for-profit) and AICPA standards. The year is 2020. Of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Hope received $41,000 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 599,000 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 $50,000 for nursing training, using $44,000 of donor restricted resources received in 2019 for that purpose 4. On June 15, 2020, Hope was awarded a $61.000 grant for cancer research by the US Department of Agriculture. During 2020, Hope had qualified expenses under the grant totaling $41,000. This is cost reimbursement, grant 5. Hope received $278,000 in cash. The board decided to invest the funds for future plant expansion
there should be 11 entires total at the end

Answer 1

S No.	Particulars	Amount ($)	Amount ($)
1	Cash A/c…………………….Dr	41000
	To Income from pledge A/c		41000
	(Being cash received to be expended in current year)
	Since no information of the same being expended is mentioned, no journal entry.
2	Income Receivable (Pledges from Donors)…………………….Dr	99000
	To Donation A/c		99000
	(Being money receivable in 2021 from donors)
3	Nursing Training (Expense) A/c……………………Dr	50000
	To Bank A/c		50000
	(Being money expended on nursing training)
4	Cancer research A/c…………….Dr	41000
	To Bank A/c		41000
	(Being money incurred for Cancer research)
	US Department of Agriculture A/c…………….Dr	41000
	To Cancer research A/c		41000
	(Being money recoverable from US Department)
5	Cash A/c ………………Dr	278000
	To Donation A/c		278000
	(Being Cash received as donation)