Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of directors decided to conduct a major fund-raising campaign. They wished to have the December 31, 20X4, statement of financial position for Brookdale fully conform with current generally accepted principles for hospitals. The trial balance prepared by the controller at December 31, 20X4, follows: Cash Investment in Short-Term Marketable Securities Investment in Long-Term Marketable Securities Interest Receivable Accounts Receivable Inventory Land Buildings & Equipment Allowance for Depreciation Accounts Payable Mortgage Payable Fund Balance Total Additional Information: Debit $ 100,300 200,400 301,300 15,400 55,300 36,200 121,100 936,300 Credit $ 259,900 41,200 321,100 1,144,100 $1,766,300 $1,766,300 1. Your analysis of the contributions receivable as of December 31, 20X4, determined that there were unrecognized contributions for
Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of directors decided to conduct a major fund-raising campaign. They wished to have the December 31, 20X4, statement of financial position for Brookdale fully conform with current generally accepted principles for hospitals. The trial balance prepared by the controller at December 31, 20X4, follows: Cash Investment in Short-Term Marketable Securities Investment in Long-Term Marketable Securities Interest Receivable Accounts Receivable Inventory Land Buildings & Equipment Allowance for Depreciation Accounts Payable Mortgage Payable Fund Balance Total Additional Information: Debit $ 100,300 200,400 301,300 15,400 55,300 36,200 121,100 936,300 Credit $ 259,900 41,200 321,100 1,144,100 $1,766,300 $1,766,300 1. Your analysis of the contributions receivable as of December 31, 20X4, determined that there were unrecognized contributions for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of directors decided to conduct a
major fund-raising campaign. They wished to have the December 31, 20X4, statement of financial position for Brookdale fully conform
with current generally accepted principles for hospitals. The trial balance prepared by the controller at December 31, 20X4, follows:
Cash
Investment in Short-Term Marketable Securities
Investment in Long-Term Marketable Securities
Interest Receivable
Accounts Receivable
Inventory
Land
Buildings & Equipment
Allowance for Depreciation
Accounts Payable
Mortgage Payable
Fund Balance
Total
Additional Information:
Debit
$100,300
Unrestricted use
Cancer research
Purchase of equipment
Permanently restricted endowment principal
Total
200,400
301,300
15,400
55,300
36,200
121,100
936,300
Credit
$ 259,900
41,200
321,100
1,144,100
$1,766,300 $1,766,300
1. Your analysis of the contributions receivable as of December 31, 20X4, determined that there were unrecognized contributions for
$41,900
11,600
21,000
30,400
$184,900
2. Short-term investments at year-end consist of $151,000 of funds without donor restrictions and $49,400 of funds restricted for future
cancer research. All of the long-term investments are held in the permanently restricted endowment fund.
3. Land is carried at its current market value of $121,100. The original owner purchased the land for $71,800, and at the time of
donation to the hospital, it had an appraised value of $95,300.
4. Buildings purchased 11 years ago for $616,500 had an estimated useful life of 30 years. Equipment costing $153,000 was purchased
7 years ago and had an expected life of 10 years. The controller had improperly increased the reported values of the buildings and
equipment to their current fair value of $936,300 and had incorrectly computed the accumulated depreciation.
5. The board of directors voted on December 29, 20X4, to designate $101,500 of funds without donor restrictions invested in short-
term investments for developing a drug rehabilitation center.
Required:
Prepare a balance sheet for Brookdale Hospital at December 31, 20X4. (Amounts to be deducted should be indicated with minus
sign.)

Transcribed Image Text:Assets
Current Assets:
Total current assets
Long-term assets:
BROOKDALE HOSPITAL
Balance Sheet
December 31, 20X4
Net investment in buildings and equipment
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