Question: (Use of funds) The following transactions relate to the Rohan Hospital, a not-for-profit hospital that uses fund accounting for internal record keeping purposes. Indicate which fund(s) would be used to record the data.
1. Collected $2,345 from a patient.
2. Received a $100,000 grant from Christine Drug Company for a study of the effects of morphine on female patients.
3. Received unrestricted gifts of $50,000.
4. Purchased equipment for $125,000 by using resources previously accumulated in the Plant Replacement and Expansion Fund.
5. Research expenses totaling $12,000 were incurred in studying the effects of morphine on female patients, using the Christine grant.
6. The board decided to begin a fund for nursing education. Initially $10,000 of general hospital resources was transferred to the fund.
7. Marketable securities with a fair value of $15,000 were donated by CHR, Inc., to help the hospital acquire new equipment.
8. The hospital received a dividend check for $2,000 from the securities donated in transaction 7. Assume that the investment income is restricted in the same way as the original gift.