Assignment: Use of funds:
The Brite-Hope Hospital uses the following types of funds:
GF General Fund
EF Endowment Funds
PREF Plant Replacement and Expansion Funds
SPF Specific Purpose Funds
Using these codes, identify which fund(s) would be used to account for the following events or activities:
1. The operations of the cafeteria.
2. A gift received from an individual for medical research (consider only the receipt of the gift).
3. Income is earned on investments of money donated by the Many bucks Corporation (the original gift and all income earned must be used to provide up-to-date equipment for the hospital).
4. The hospital received $1 million in securities from an individual; the principal of the gift must be maintained intact (consider only the receipt of the gift).
5. The managing board of the hospital decided to start a fund for cancer research. It transferred $30,000 into the fund. Which fund would be used to record the receipt of the money?
6. The payment of salaries to the nursing staff.
7. Depreciation is recorded on equipment in use.
8. The purchase of additional hospital equipment.