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PART I:St. Clair Hospital uses the following types of funds: 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. A 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. B 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. B’s $1 million gift is used to construct a new wing to the hospital for the brain injury unit.PART II:Assume that St. Clair Hospital is a not-for-profit hospital. For each of the above six transactions or events shown in that problem, state which of the three net asset classifications are affected: unrestricted; temporarily restricted; or permanently restricted.
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