Not-for-Profit Financial Statements. Renfrow Rehabilitation Center uses fund accounting for internal purposes. Presented is the December 31, 2011 balance sheet prepared from the funds the center uses.
The controller asks that you prepare an aggregated balance sheet in accordance with current financial reporting standards for a not-for-profit health care organization using SFAS No. 117 and the AICPA Audit and Accounting Guide, Health Care Organizations. Based on additional information provided, you determine that
1. The cash and investments of the plant are restricted under the terms of several gifts to use for plant expansion, with income from plant fund investments restricted to the same purpose.
2. Income from endowment fund investments may be used at the discretion of the center’s governing board.
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