Question

Exercise 1-3A Identifying the reporting entities LO 1-2 Karen White helped organize a charity fund to help cover the medical expenses of her friend, Vicky Hill, who was seriously injured in a bicycle accident. The fund was named the Vicky Hill Recovery Fund (VHRF) Karen contributed $1,000 of her own money to the fund. The $1,000 was paid to WKUX, a local radio station that designed and played an advertising campaign to educate the public about Vicky's predicament. The campaign resulted in the collection of $16,000 cash, and VHRF paid $9.600 to Mercy Hospital to cover Vicky's outstanding hospital cost. The remaining $6,400 was donated to the National Cyclist Fund. Required Identify the entities mentioned in the scenario and explain what happened to the cash accounts of each entity you identify Entities Mentioned Vicky Hall Recovery Fund increase Effect On Cash for cash contributions, 517,000 for payment of advertising $1.000 payment for hospital bills. 59.600 for donation to National Cyclist Fund 56.400 by contribution $1,000 for advertising revenue. S1000 for contributions $16.000 Increase Decrease Decrease Increase Decrease Increase Karen White WKUX Pub

Answer 1

Karen White Entities Fund Effect on Cash Vicky Hill Recovery Fund Increase for cash contributions, $17000 Decrease for payment of advertising $1000 Decrease Payment for hospital bills, $9600 Decrease for donation to National Cyclist Fund , $6400 Karen White Decrease by contribution $1000 WKUX Increase for advertising revenue, $1000 Public Decrease for contributions, $16000 Mercy Hospital Increase for medical care, $9600 National cyclist fund Increase for donation, $6400