private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $709,000. Of this mount, unrestricted net assets total $403,000, temporarily restricted net assets total $203,000, and permanently restricted net assets otal $103,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No mplied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions: • Received unrestricted cash gifts of $213,000. Paid salaries of $83,000 with $23,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals working on research to cure the designated disease and individuals employed for fund-raising purposes. Bought equipment for $306,000 with a long-term note signed for $253,000 and restricted funds used for the remainder. Of this equipment, 80 percent is used in research, 10 percent is used in administration, and the remainder is used for fund-raising. Collected membership dues of $33,000. The members receive a reasonable amount of value in exchange for these dues including a monthly newsletter describing research activities. Received $13,000 from a donor that must be conveyed to another charity doing work on a related disease. Received investment income of $16,000 generated by the permanently restricted net assets. As mentioned above, the donor has stipulated that 70 percent of the income is to be used for advertising, and the remainder may be used at the entity's discretion. • Paid advertising of $2,300. • Received an unrestricted pledge of $130,000 that will be collected in three years. The entity expects to collect the entire amount. The pledge has a present value of $81,000 and related interest (additional contributed support) of $3,300 in the year. Computed depreciation on the equipment acquired as $23,000. Spent $96,000 on research supplies that it utilized during the year. Owed salaries of $8,000 at the end of the year. Half of this amount is for individuals doing fund-raising and half for individuals doing research. Received a donated painting that qualifies as a museum piece. It has a value of $830,000. Officials do not want to record this gift if possible. < Prev 4 of 6 Next > Photos (1).zip ZIP MacBook Pro The pledge has a present value of Computed depreciation on the equipment acquired as $23,000. Spent $96,000 on research supplies that it utilized during the year. • Owed salaries of $8,000 at the end of the year. Half of this amount is for individuals do research. Received a donated painting that qualifies as a museum piece. It has a value of $830,0 possible. a. Prepare a statement of activities for this not-for-profit entity for this year. b. Prepare a statement of financial position for this not-for-profit entity for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a statement of activities for this not-for-profit entity for this year. Statement of Activities Unrestricted Net Assets Temporarily Permanently Restricted Net Assets Restricted Net Assets

1. A not-for-profit hospital performs services in the current year at a charge of $1 million.  Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work.  Additionally, officials expect another $94,000 to be bad debts.  What should the hospital report as net patient service revenues? Select one: a.$906,000 b.$1,000,000 c.$706,000 d.$800,000   2. In the accounting for health care providers, what are third-party payors? Select one: a.Friends and relatives who pay the medical costs of a patient. b.Doctors who reduce fees for indigent patients. c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States. d.Charities that supply medicines to hospitals and other health care providers.   3.What is a contractual adjustment? Select one: a.A year-end journal entry to recognize all of a health care entity's remaining receivables. b.An increase in a patient's…

Caring Shop is a gift shop located in The Natural History Museum. Caring shop has annual sales revenue of $850,000. Additionally, the Natural History museum has investment income of $550,000 from its endowment, and an annual operating budget of $3 million. Both the income from the gift shop and the endowment income are used to support the exempt purpose of the museum. The balance of funding required for annual operations is provided through admission fees. Dan Nolan, a new board member, does not understand why the museum is subject to tax at all, particularly because all of the entity's profits are used in carrying out the mission of the museum.   As the museum treasurer, write a letter to Dan Nolan explaining the reason for the tax consequences.

Aukey Smith contributed $1,000,000 to the local homeless shelter on November 1, 2025, stipulating that the contribution be used to purchase a building to provide additional beds for the homeless. The building was purchased at à cost of $1,200,000 on March 31, 2026, with $200,000 coming from surpluses in the general fund. The building has an estimated useful life of 15 years, with no residual value. The shelter capitalizes its capital assets and uses the straight line method to amortize its capital assets, pro-rating for the number of months owned in the years of acquisition and disposal. The shelter has a December 31 year end and uses the deferral method. What journal entry correctly accounts for the building and contribution revenue in the financial statements for the year ending December 31, 2026? 50,000 O Dr. Deferred contribution liability Cr. Contribution revenue Dr. Amortization expense Cr. Capital asset-accumulated amortization Dr. Deferred revenue Dr. Amortization expense Cr.…

During 2024, the following transactions were recorded by the Port Hudson Community Hospital, a private-sector not-for-profit institution: Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,675,000. Estimated contractual adjustments with third-party payors amounted to $405,000, and the hospital estimated implicit price concessions totaling 35,000. Charity services, not included in transaction 1, would amount to $66,000 had billings been made at gross amounts. Other revenues received in cash were parking lot, $20,000; cafeteria, $35,000; gift shop, $5,000. Cash gifts restricted by the donor for programs amounted to $32,000 for the year. During the year, $50,000 was expended for technician salaries supporting the program identified by the donor (Debit Operating Expense—Salaries and Benefits). Mortgage bond payments amounted to $50,000 for principal and $28,000 for interest. Assume unrestricted resources are used. During the year, the…

The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2023, follows. Cash Pledges Receivable-Without Donor Restrictions Estimated Uncollectible Pledges Inventory Investments Furniture and Equipment Accumulated Depreciation Furniture and Equipment Accounts Payable Net Assets Without Donor Restrictions Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Contributions-Without Donor Restrictions Contributions-With Donor Restrictions Programs Investment Income-Without Donor Restrictions Net Assets Released from Restrictions-With Donor Restrictions Net Assets Released from Restrictions-Without Donor Restrictions Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gain on Investments Depreciation Expense Totals Required a. Prepare a statement of financial position as…

Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Painting: The amount of the contribution is Stock: The amount of the contribution is Groceries: The amount of the contribution is Adjusted Basis $6,000 $10,000 Painting held four years as an investment, to a church, which sold it immediately Apple stock held two years as an investment, to United Way, which sold it immediately Canned groceries held one month as inventory, to Catholic Meals for the Poor 15,750 35,000 7,800 13,000 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Therefore, the total charitable contribution is $ Fair Market Value

A government was awarded a grant from another government. The $8,000,000 grant is restricted to use for construction of a facility for one of the grantee government's enterprise activities. The grant is for half the cost of the facility. The grantor will reimburse half of the costs as they are incurred. At the end of the first fiscal year, $3,000,000 has been spent on the project. $1,500,000 has been collected from the grantor. How should the grantee's Enterprise Fund statement of cash flows report the cash inflows?

During the current year, a voluntary health and welfare organization receives $800,000 in unrestricted pledges. Of this amount, $300,000 has been designated by donors for use next year to support operations in the pharmacy. what amount of unrestricted support should the organizations recognize in its current-year financial statements? A.) $800,000 B.) $700,000 C.) $500,000 D.) $400,000

The Senior League, a not-for-profit welfare agency, redeemed a $100,000 bond that it had held as an investment of resources without donor restrictions. It also received an interest payment of $6,000. In its statement of cash flows, the league should report： A.) $106,000 as a cash flow from investing activities B.) $106,000 as a cash flow from operating activities C.) $100,000 as a cash flow from investing activities and $6,000 as a cash flow from financing activities D.) $100,000 as a cash flow from investing activities and $6,000 as a cash flow from operating activities