Accounting for contributions with donor restrictions On January 1, the first day of the fiscal year, a member of a nonprofit hospital’s board of directors passed away. His will provided a $122,500 contribution to the hospital to upgrade the skills of its nurses. During January, the hospital spent $52,500 to train the nurses. Prepare journal entries to record the transactions.
Q: bi Calculate the amount of the annual rental payment. (Round answer to 0 decimal places, e.g.…
A: Leases are commonly used for real estate, vehicles, equipment, and other tangible assets. lease is…
Q: Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $44800 and later…
A: Stock dividend: When the business organization distributes the dividend in the form of an issue of…
Q: Yogi Company budgeted direct materials purchases of $191,440 in January and $139,520 in February.…
A: Cash payment :— This budget shows the payment for purchase of inventory to the supplier during the…
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.…
A: Flexible budget is the statement which reports the variable and fixed costs to be incurred at…
Q: Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in…
A: The dividend is declared to the shareholders from the retained earnings of the business. The net…
Q: Corp. purchased it's own "already-issueď" (publicly traded in the open market - Wall Street) stock…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: these answers were wrong?
A: Gross profit: The difference between the sales and the cost of goods sold is called gross profit.…
Q: A. Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized…
A: Journal:- These are prepared by the companies with debit and credit sides in order to match the…
Q: A Calgary manufacturer, Horseshoe Co., sold 50,000 pairs of horse shoes in 2011. Below is a partial…
A: The income statement is prepared to record the revenue and expenses of the current period. The net…
Q: Corporation P owns 93 percent of the outstanding stock of Corporation T. This year, the…
A: Taxable income refers to the amount that is charged by the government and corporation on the…
Q: Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating…
A: Ratio analysis is a quantitative method of getting inside review of an organisation. Ratio analysis…
Q: Selected data from Emporia Company follow: Balance Sheets As of December 31 Accounts receivable…
A: Net margin can be calculated by deducting the total operating expenses for the year from the net…
Q: Required information [The following information applies to the questions displayed below.] Raphael…
A: Total par value of preferred shares = $50,000 Number of preferred shares issued = 1,000 Total…
Q: The tax basis entries above add up to $625,000, not $645,000
A: Under U.S. federal tax law, the tax basis of an asset is generally its cost basis. Determining such…
Q: 52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1,…
A: Gain on bargain purchase arises when the price paid for an acquisition is less than the fair value…
Q: 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your…
A: The journal entry is used to record the day-to-day business transactions in the books. The journal…
Q: Jerry, a partner with 30% capital and profit interest, received his Schedule K-1 from Plush Pillows,…
A: The adjusted basis in a partnership interest refers to the cost basis of a partner's ownership…
Q: Use graphical approximation techniques or an equation solver to approximate the desired interest…
A: The annual interest rate is represented as an annual nominal rate, which excludes the effects of…
Q: lasts longer than HID lighting on per fixture on per fixture (in present value terms) xture with LED
A: Investment cost of replacing 800 Fixtures Investment cost of replacing 1 Fixture = $300 No. of…
Q: What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and…
A: The variance occurs when the standard and actual production data are different. The variance may be…
Q: Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice,…
A: Equivalent units of production are the estimated number of units that could have been started and…
Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Jasper Company has 56% of its sales on credit and 44% for cash. All credit sales are collected in…
A: A cash Budget is prepared to analyze the cash transaction or cash flow of the business. Non-cash…
Q: Corp purchases trees from Vendor and processes them up to the splitoff point where two products…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: Sales Cost of Sales Operating Expense Consolidated Income seaton Company. The consolidated income…
A: A consolidated income statement refers to a financial statement showing all the expenses and…
Q: A company reports the following Information for its direct labor. Actual hours of direct labor used…
A: Actual cost = actual hours * actual rate standard cost = standard rate * standard hours Direct…
Q: Calculate the missing information for the following purchases. Sales Tax Excise Sales Excise Tax…
A: Item Selling price Sales tax rate Sales tax Excise tax rate Excise tax Total purchase price Sofa…
Q: Following are transactions for Vitalo Company. November 1 Accepted a $9,000, 180-day, 7% note from…
A: The accrued interest is the amount of interest due but not received in cash. The maturity amount is…
Q: Redemption of Bonds IVESTER Company issued $450,000 face value bonds at a premium of $10,500. The…
A: The bonds can be issued at a discount or premium. The premium is amortized over the term of the…
Q: ars. Any tax effects should be adjusted through the deferred tax liability account. ming Home…
A: JOURNAL ENTRY-IT IS A BOOK OF PRIMARY ENTRY OR A BOOK OF ORIGINAL ENTRY IN WHICH TRANSACTION ARE…
Q: 34 2007 Sitewide Company's net income was $270,000. Given the account information below, what is the…
A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…
Q: Exercise 17-23 Reciprocal-Services Method; Bank (Appendix) (LO 17-6) uscaloosa National Bank has two…
A: Using the reciprocal method, the cost is also allocated between two service departments…
Q: Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The overhead…
Q: Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business…
A:
Q: Sagamore Co. purchased a machine on January 1, 2010 for $50,000. The residual value is zero and the…
A: The accumulated depreciation represents the total depreciation to date. The accumulated depreciation…
Q: Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Following are transactions of Danica Company. December 13 Accepted a $14,000, 45-day, 4% note in…
A: Notes receivable refers to the notes accepted by the entity instead of the accounts receivable or…
Q: Cash Accounts Receivable Supplies Prepaid Insurance SMITH INTERIOR DECORATING SERVICE Balance Sheet…
A: Balance sheet is one of the financial statement being prepared in business. It shows all assets,…
Q: MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost…
A: Direct material budget is used to calculate the quantity and the amount of the material to be…
Q: MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost…
A: The production budget is prepared using the sales budget. The direct materials and direct labor…
Q: Waterway Company combines its operating expenses for budget purposes in a selling and administrative…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: What should be the total revenue earned by Myra over the life of this note?
A: Dear student, since you have posted two different questions at a time, only one question i e the…
Q: Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense…
A: TARGET SALES Target Sales is the Sales Required to Earn Desired Profit. The target profit is the…
Q: Electro Company manufactures transmissions for electric cars. Management reports ending finished…
A: The production budget is prepared to estimate the number of units to be produced during the period.…
Q: An operations costing system: Multiple Choice assigns materials equally to each operation. assigns…
A: An operations costing system assigns both direct materials and conversion costs (direct labor and…
Q: Construction loan, 12% Long-term note, 11% Long-term note, 8% $ 1,425,000 1,900,000 3,800,000…
A: Lets understand the basics. As per IAS 23 "Borrowing costs", interest expense incurred for the…
Q: Required information Problem 11-50 (LO 11-5) (Algo) [The following information applies to the…
A: In requirement a) 1.Selling both the 1231 assets in Dec of Year 1(Same Year) There is a net 1231…
Q: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Raw materials…
A: Revenue and spending variance :— It is the difference between actual results and flexible budget.…
Q: Problem Set: Module 6 1. TMM.07.05 2. EX.07.12.ALGO 3. EX.07.02.ALGO 4. EX.07.05.ALGO 5. TMM.07.01…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: frequently. Which of the following stateme using historical cost account current value accounting in…
A: Historical cost refers to the concept of noting the value of an fixed asset in the accounting books…
Accounting for contributions with donor restrictions
On January 1, the first day of the fiscal year, a member of a nonprofit hospital’s board of directors passed away. His will provided a $122,500 contribution to the hospital to upgrade the skills of its nurses. During January, the hospital spent $52,500 to train the nurses.
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Accounting for contributions with donor restrictions On January 1, the first day of the fiscal year, a member of a nonprofit hospital's board of directors passed away. His will provided a $96,250 contribution to the hospital to upgrade the skills of its nurses. During January, the hospital spent $41,250 to train the nurses. Prepare journal entries to record the transactions. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit Cash 96,250 Restricted donor contribution revenue 96,250 To record contribution. Nurse training expense 41,250 Cash 41,250 v To record tralning costs. Net assets without donor restrictions, Reclassifications in 41,250 Net assets with donor restrictions, Reclassifications out 55,000 x To record reclassification. > >Prepare journal entries to record the following transactions of a nonprofit hospital, with expense transactionscategorized by function:1. The hospital billed its uninsured patients for $300,000. Based on historical experience, it expects tocollect 45 percent of that amount over time.2. Nurses and doctors employed by the hospital were paid their salaries, $120,000.3. The chief administrative officer was paid her salary of $12,000.4. The hospital paid its utility bill, $6,000.5. Depreciation on the equipment was $40,800.6. Several adults donated their time (worth $6,000) selling merchandise in the hospital gift shop.7. The hospital billed Medicare $120,000 for services provided at its established rates. The prospectivebilling arrangement gives Medicare a 40 percent discount from these rates.8. A contribution without donor restrictions of $4,800 was received. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.Prepare journal entries to record the transactions.1. Donor A gave a nonprofit a $55,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year.2. Donor B gave a nonprofit a $27,500 cash gift in July, telling the nonprofit the gift could be used only for research on a specific project.3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individualspromised to make cash contributions totaling $2,200,000 during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash.4. Donor C gave a nonprofit several investments having a fair value of $3,300,000 in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity,but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $110,0005. Using the…
- Recording journal entries for nonprofits Prepare journal entries to record the following transactions. 1. Donor A gave the nonprofit a cash gift of $50,000 in June 2019, telling the nonprofit the gift could not be used until 2020. (Identify the affected net asset classification(s) in the journal entries made both in June 2019 and at the start of 2020.) 2. Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers. 3. Donor B sent a letter to a nonprofit, saying she would donate $20,000 in cash to the nonprofit, to be used for any purpose the nonprofit's trustees desired, provided the nonprofit raised an equal amount of cash from other donors. 4. Regarding the previous transaction, the nonprofit raised $23,000 in cash from…Prepare journal entries in the general fund for the following 2018 transactions that represent inflows of financial resources to Tyler City: 1. To pay the wages of part-time city maintenance employees, the Cemetery Expendable Trust Fund transfers $45,000 to the general fund. 2. A resident donates land worth $75,000 for a park. 3. The city is notified by the state that it will receive $30,000 in road assistance grants this year. 4. A fire truck with an original cost of $36,000 is sold for $9,000. 5. Sales of license stickers for park use total $5,000. The fees cover this year and next year. Security staff are paid from these fees to check for cars in the park without stickers.Prepare general journal form for the following transactions of Bothwell Regional Hospital, a nongovernmental not-for-profit hospital. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.) 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. 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. New equipment costing $750,000 was purchased from money given to the hospital by a donor in a prior year to be held until needed for equipment purchases. 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…
- Record the following transactions on the books of the private not-for-profit Mansoor Hospital. The Hospital billed patients AED880,000 for services rendered. Of this amount, 5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total AED125,000. The Hospital received AED640,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 6% are expected to be uncollectible. Charity care in the amount of AED38,000 was performed on an indigent patient. The Hospital collected AED684,000 for the services performed in (a) above. Actual contractual adjustments for these services amounted to AED135,000. AED32,000 of receivables were identified as uncollectible and written off.A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Revenues of $33,500. Public support of $33,500. Public support of $32,000 and a $1,500 increase in the fund balance. Public support of $32,000 and revenue of $1,500.A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Choose the correct.a. Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500 increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.
- Heartland Hospital is a private hospital with a June 30 fiscal year end. Prepare the journal entries in good form. 1 $520,000 was received in pledges for temporarily restricted purposes. An allowance for uncollectible pledges was set up for $30,000. 2 Patient service revenue amounted to $3,130,000, all recorded on account. Contractual adjustments were recorded at 1,405,000. Uncollectible accounts are estmated at $240,000. 3 Other revenue (cafeteria, parking fees, etc) totaled $268,000, all received in cash. 4 Temporarily donor restricted net assets of 2,600,000 was expended for equipment. The Hospital's policy is to record all property, plant, and equipment as unrestricted. 5 Unrestricted gifts and bequests were received in cash for $340,000. 6 Patient accounts in the amount of $295,000 were written off. 7 Investment income on board-designated funds, which is limited by board policy to provide renewals and replacements, amounted to $75,000 and was received in cash. 8 Cash collected on…White Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital’s calendar year ending December 31, 2019 journal entries to record the transactions listed in 1 through 14. below Third-parties payers and direct-pay patients were billed $6,500,000 at the hospital's established billing rates The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients The hospital estimated contractual adjustments for the year of $1,600,000 The hospital originally estimated uncollectible amounts from direct-pay patients to be $250,000 (recall that original estimated uncollectible amounts reduce revenue; only estimates specific to an individual patient are reported as bad debt expense). The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000 The hospital received payments from third-party payers…A local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.a. The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs.b. Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries. c. Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose.d. Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors.e. Calculated depreciation expense of $38,000.f. Received interest income of $15,000 on the investments the board acquired in…