Question

Karen White helped organize a charity fund to help cover the medical expenses of a friend of hers who was seriouslyinjured in a bicycle accident. The fund was named Vicky Hill Recovery Fund (VHRF). Karen contributed 81,000 of her ownmoney to the fund. The $1,000 was paid to WKUX, a local radio station that designed and played an advertising campaignto educate the public as to the need for help. The campaign resulted in the collection of $20,000 cash VHRF paid $12,000to Mercy Hospital to cover Vicky’s outstanding hospital cost. The remaining $8,000 was contributed to the National CyclistFund.RequiredIdentify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entitythat you identify.

Answer 1

Answer:

Explanation:

Karen contributed $1000, so her account decreased by $1000

Company paid $1000 to WKUX radio, so WKUX income increased by $1000

Someone donated $20000 due to campaign, so those who donated decreased their cash account by $20000

VHRF paid Mercy Hospital $12000, so hospital's account increased by $12000

Company contributed to NC Fund of $8000, so their account increased by $8000

VHRF TRANSACTIONS EFFECT:

1. Cash account increased by $21000 (charitable contributions)

2. Cash account decreased by $1000 (radio advertisement)

3. Cash account decreased by $12000 (hospital bills)

4. Cash account decreased by $8000 (contribution to NC fund)