Question: (Journal entries to record the receipt and use of contributions by a not-for-profit hospital) Ellen Falk Hospital, a not-for-profit hospital, had the following transactions during the year ended December 31, 2012. Prepare journal entries necessary to record the transactions. The hospital does not use fund accounting.
1. Joe Joseph, a high school senior, donated his services to the hospital for an entire summer, serving food to patients and performing general tasks. If paid for, these services would have cost the hospital $8,000.
2. D. Bean donated $20,000 to the hospital, stipulating that the resources be used only to resurface its parking lot, a maintenance function that the hospital performs every 3 years.
3. The hospital used D. Bean's donation for the stipulated purpose.
4. J. Blythe's estate donated $500,000 to the hospital to help pay for new MRI equipment.
5. The hospital used J. Blythe's donation for new MRI equipment.