Question: (Transactions involving General Fund and restricted funds) Using the same information given below, prepare the journal entries that would be used to record the data. Identify each type of fund used.

Information: (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.