A donor gave $75,000 to a nongovernmental, not-for-profit charity with instructions that s be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit w A) A. Record the $75,000 cash and credit revenue with donor restrictions. B) B. Record the $75,000 cash and credit a liability. C) C. Not record the transaction, because the money is going directly to the intended D) D. Do either of the choice A or B, depending upon the policy of the not-for-profit.
Q: Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to…
A: Answer:- Social security tax: Pensions for employees and disability benefits are funded by social…
Q: Hello, what you see here is the question and all the information contained herein. Can you please…
A: The objective of the question is to calculate the total asset turnover for Mountain Agency. The…
Q: Required information [The following information applies to the questions displayed below] Luke sold…
A: A.Adjusted basis in building = Original basis- Accumulated Depreciation = $200,000 -…
Q: On October 3, 2023, Stella purchased an office building for $2,200,000. The land was valued at…
A: Cost recovery is a method which is used to recognize profit related to a sale until the cash…
Q: Cincinnati Food Supply Co. is a major supplier to Kraft Foods. On January 1 of the current year they…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: * Your answer is incorrect. Marigold Industries began the year with 3,100 stocking hats in WIP…
A: Equivalent Units of ProductionEquivalent Production is represents the production of a process in…
Q: Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer.
A: Contribution margin = Sales - Variable costsNet Income (Loss )= Contribution margin - Fixed…
Q: Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her…
A: 1] You may contribute up to 25% of compensation (20% if you're self-employed4) or $66,000 for tax…
Q: Bill has the following income and expense statement: Income Salary Bonuses Rental income Capital…
A: Taxable income is the income which is subject to taxation. In order to arrive at the taxable income,…
Q: ABC Company operates two divisions with the following operating Information for the month of May.…
A: The return on investment is calculated net income divided by average operating assets. The residual…
Q: Balerio Corporation's relevant range of activity is 12,000 units to 15,000 units it produces and…
A: All expenses associated with the production or purchase of a product are included in the term…
Q: When the accounts receivable of a computer are sold outright to a company that normally buys…
A: In order to increase sales, business entities generally sold the goods on a credit basis.The person…
Q: Cowboy Bob Enterprise is an agribusiness that is involved in crop farming and cattle production.…
A: Horizontal analysis is a process of comparing each line item of financial statements of a particular…
Q: A building with a book value of $43,555 is sold for $59,366 cash. Using the indirect method, this…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Inventory records for Capetown, Incorporated revealed the following: о Date April 1 April 20…
A: The weighted average method is an inventory valuation method in which inventory is valued at an…
Q: Why will the net income go up by $2? Help me make sense of this problem
A: The objective of this question is to understand the impact of a sale on the reported net income of…
Q: Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round answers to 1 decimal place,…
A: In vertical analysis, financial statements are examined to determine how each line item compares to…
Q: The bank statement lists a deposit of $675 which correctly reflects that cash deposit and the…
A: The bank reconciliation is a process of comparing the company's records (book balance) with the bank…
Q: Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio…
A: Earnings Per Share (EPS): The percentage of a company's profit allotted to each outstanding share of…
Q: Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common…
A: Consolidated Financial Statements are usually prepared when there is a parent company and two or…
Q: alth care company, looks to invest $50 million in new technologies for diagnostic instrument…
A: Effective financial management relies heavily on budgets, which offer a road map for generating…
Q: Skysong Supply Co. has the following transactions related to Notes Receivable during the last 2…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Igo) Entries for payroll transactions LO P2, of the first weekly pay period of the year, Regis…
A: Payroll accounting is an accounting method of recording gross salaries and wages , applicable taxes…
Q: In 2026, the company successfully defends the patent in extended litigation at a cost of $51,200,…
A: The question is related to Accounting for Intangible Assets. All expenditure incurred on Intangible…
Q: Blossom Corporation issued $5100000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus…
A: The bonds are issued either by a corporation or government entity. The bonds can be convertible or…
Q: Seinfeld Co. recorded purchases of $520,000 during the current year, and 20% of these purchases were…
A: Total purchases$520,000Less: Cash Purchases ($520,000 * 20%)$104,000Total credit purchases ($520,000…
Q: 28. Steve, a single taxpayer, had a loss of $48,000 from a rental real estate activity (he owned a…
A: Since he owned a greater than 10% interest and he was actively participating in real estate…
Q: An innovator is more likely to rely on information from an impersonal source (such as an article in…
A: AN INNOVATOR IS AN INDIVIDUAL WHO INTRODUCES NEW IDEAS , METHODS , PRODUCTS , OR PROCESSES , OFTEN…
Q: The following labour standards have been established for a particular product: standard labour hours…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: At the beginning of the current season on April 1, the ledger of Cullumber Pro Shop showed Cash…
A: Journal entries are the records of the transactions entered into by the organization during the…
Q: s total fixed expenses b. increasing the selling price per unit c.
A: Breakeven point is the point at which the fixed cost equals contribution margin. Contribution margin…
Q: On January 1, 2020, Smith Company signed a six-year Not interest and principal payments of $21,980,…
A: Present value including capital budgeting, bond valuation, and investment appraisal. By using it,…
Q: On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal…
A: A home mortgage loan is nothing but the loan secured against a residential propertyIt can be…
Q: Acme Company's production budget for August is 18,500 units and includes the following component…
A: Material variance is the difference between standard material cost for actual production and actual…
Q: Current Attempt in Progress Marigold Corp. issues an $855,000, 11%, 10-year mortgage note on…
A: Journal Entry is an primary step to record the transaction in the books of accounts.The increase in…
Q: Exercise 3.- Determine the optimal production mix and prepare the income statement with the…
A: Optimal product mix problems typically arise in production or manufacturing scenarios where a…
Q: ! Required information RWP10-1 (Algo) Great Adventures Continuing Case [The following information…
A: The stockholders’ equity forms a part of the financial statement prepared by the company at the end…
Q: Alice is single and self-employed in 2022. Her net business profit on her Schedule C for the year is…
A: As of the year 2022, the self-employment tax rate is 15.3% consisting of 12.4% of social security…
Q: what is the equation you used for determining the corporations earning share for 2024 and what was…
A: Stockholders’ equity refers to the ownership interest in the business. It is the claim of the owners…
Q: Profitability ratios The following selected data were taken from the financial statements December…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: ave sufficient funds to pay dividends?
A: A company declares and pays dividend when it has sufficient retained earning to declare declare…
Q: An investor purchased a stock one year ago for $83.00. It paid an annual cash dividend of $3.76…
A: The objective of the question is to calculate the total return earned by the investor and to…
Q: In January 2021, Blosso
A: A patent is an exclusive right granted for an invention, which is a product or a process that…
Q: Snavely, Incorporated, manufactures and sells two products: Product E1 and Product A7. Data…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Leopard Companies bought a machine for $74,000 cash. The estimated useful life was five years and…
A: Formula workings:
Q: The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the…
A: The first in first out method is a inventory valuation model which sells the first purchases first.…
Q: Prepare an answer sheet with the column headings shown here. For each of the following transactions…
A: An official record of the financial activities and status of a company, person, or other entity is…
Q: Lydex Company’s financial statements for the last two years are as follows: Lydex Company…
A: The objective of the question is to calculate various financial ratios to assess the stock market…
Q: Barbados Soy Products produces equipment used in the Agricultural industry. The advent of organic…
A: From Learning curve equation we know Y=a*X^bWhere Y =Cumulative average time per unit,a = time to…
Q: Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese's current…
A: A cost benefit analysis is technique/method that helps decision maker to choose the better…
Step by step
Solved in 3 steps
- To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? Choose the correct.a. No part of the $100,000 can be reported as a program service expense.b. Some part of the $100,000 must be reported as a program service expense.c. No authoritative guidance exists, so the organization can allocate the cost as it believes best.d. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? No part of the $100,000 can be reported as a program service expense. Some part of the $100,000 must be reported as a program service expense. No authoritative guidance exists, so the organization can allocate the cost as it believes best. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100. The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Make no entry. Record contributed support of $2,100 and community assistance expense of $2,100. Recognize revenue of $2,100. Recognize contributed support of $2,100 and community expenditures of $2,100.
- A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100. The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Choose the correct.a. Make no entry.b. Record contributed support of $2,100 and community assistance expense of $2,100.c. Recognize revenue of $2,100.d. Recognize contributed support of $2,100 and community expenditures of $2,100.Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most of its funding comes from donations and bequests. It uses the deferral method to account for contributions and an encumbrance system to control expenditures. For simplicity, UH accounts for all of its activities through an operations fund. UH has provided the following selected transactions for the current year: a. At the beginning of the year, UH unexpectedly received $1,000,000 from the government to purchase three monitoring machines. UH immediately purchased the machines. Since UH purchased the machines as soon as the funds were received, it did not prepare a purchase order for them. At the end of the year, UH took depreciation of $200,000 on the machines. b. UH's annual Christmas fundraising gala generated $3,011,000 in cash and $820,000 in pledges. Based on previous years' experiences, UH estimates that 85 percent of the pledges will be collected in the first three months…Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She replaces without charge an administrator who would have otherwise been paid $31,000. Which of the following statements is true? Choose the correct.a. The charity should recognize a restricted gain of $31,000.b. The charity should recognize a contribution of $31,000 as an increase in unrestricted net assets as well as salary expense of $31,000.c. The charity should recognize a reduction in expenses of $31,000.d. The charity should make no entry.
- A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?a. Charity 1 should report a contribution revenue.b. The donor continues to report an asset even after it is given to Charity 1.c. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.d. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.A charitable organization relies for its funding on donations from the general public, which is mainly in the form of cash collected in the streets by volunteers and cheques sent by post to the charity’s head office. Wealthy individuals occasionally provide large donations, sometimes on condition that the money is used for specific purpose. The constitution of the charity specifies the purpose of the charity, and also states that no more than 15% of the charity’s income each year may be spent on administration costs.Identify the inherent risks for this charitable organization that an auditor of its financial statements would need to consider.Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She replaces without charge an administrator who would have otherwise been paid $31,000. Which of the following statements is true? The charity should recognize a restricted gain of $31,000. The charity should recognize a contribution of $31,000 as an increase in unrestricted net assets as well as salary expense of $31,000. The charity should recognize a reduction in expenses of $31,000. The charity should make no entry.
- A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true? Charity 1 should report a contribution revenue. The donor continues to report an asset even after it is given to Charity 1. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.1. Mike Lindell donated $200,000 to Habitat for Humanity, a non profit. This donation was restricted to be used for buying beds for rehabbed houses for the poor. The journal entry by Habitat for Humanity for the donation should be: 2. Habitat for Humanity received a $200,000 grant to purchase a home for the Pederson family. No variance power was given as to the use of the proceeds. At the date of contribution, write the journal entry by H for H to record the initial receipt: 3.Eastern University, a private non profit university, received the following amounts during fiscal 2020 - tuition charged. 10,000,000 - less financial aid grants to students. 3,000,000' Total receipts. = 7,000,000 How should the financial aid grants to students be reported in the statement of activities?Kanlungan, Inc., is a registered non-stock, non-profit entity with the purpose of helping the poor mainly by gathering donations from benevolent donors and distributing the same to the needy. On one occasion, Kanlungan, Inc., used a certain amount of donation to purchase a commercial stall. Kanlungan designated some of its staff to operate the commercial stall to generate income to boost the funds of the organization. Is the income from the stall taxable? a. No, as long as it is used for the main purpose of the organization. b. No, as long as the organization is tax exempt, its transactions remain tax exempt as well. c. Yes, the income is from an unrelated source hence, taxable. d. Answer not given.