44. (Use of funds)
Andy Kelly Hospital uses the following types of funds for internal purposes: General Fund; Specific Purpose Funds; Plant Replacement and Expansion Fund; and Endowment Fund. State which fund (or funds) would be used to account for each of these transactions or events.
a. Ms. Shaw makes a gift of $50,000 to be used exclusively for arthritis research.
b. Hospital trustees designate $25,000 of the General Fund balance to be used for a special training program for the hospital's nurses.
c. Nurses salaries for the week, amounting to $100,000, are paid.
d. Mr. Beynon makes a gift to the hospital of $1 million, to be used exclusively for adding new wing housing the brain injury unit.
e. The hospital uses $100,000 from accumulated operating resources to acquire equipment.
f. The entire amount of Mr. Beynon’s $1 million gift is used to construct a new wing to the hospital for the brain injury unit.
45. (Distinguishing among the three net asset classifications)
Assume that Andy Kelly Hospital (Problem 44) is a not-for-profit hospital. For each of the six transactions or events shown in that problem, state which of the three net asset classifications are affected: unrestricted; temporarily restricted; or permanently restricted.