Show Entries in General Journal Form for the Following Transactions

question 30

Essay

Show entries in general journal form for the following transactions of Bothwell Regional Hospital,a not-for-profit hospital.
1)For the month just ended the hospital received in cash $8,000 from the hospital's gift shop sales,and received donated medicines with a fair value of $47,000.These medicines are of the type the hospital normally would purchase.
2)The hospital's finance officer,in compliance with the directive of the governing board,invested $600,000 of operating cash in certificates of deposit to be held for future purchases of equipment.
3)New fixed equipment costing $750,000 was purchased from money given the hospital in a prior year to be held until needed for equipment purchases.
4)A federal grant was received in cash in the amount of $400,000 to be used for heart research.During the current year only $50,000 was spent for this research program.

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Definitions:

Efficient Markets Hypothesis

The theory that all available information is already reflected in asset prices, implying that stocks always trade at their fair value, making it impossible to consistently achieve higher-than-average returns.

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, thus making it impossible to consistently achieve higher returns.

Return And Risk

Concepts in finance and investing that denote the potential profit or loss and the uncertainty associated with an investment.

Asset Bubble

A situation in financial markets where the price of an asset inflates to levels far beyond its intrinsic value, leading to an eventual crash.