Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 2E
(Expenditures vs. Expenses) Family Services, a small social service nonprofit agency, began operations on January 1, 20X1, with $40,000 cash and $150,000 worth of equipment, on which $60,000 was owed on a note to City Bank. The equipment was expected to have a remaining useful life of 15 years with no salvage value. During its first year of operations, ending December 31, 20X1, Family Services paid or accrued the following:
- 1. Salaries and other personnel costs, $100,000.
- 2. Rent and utilities, $24,000.
- 3. Debt service: interest, $5,500, and payment on long-term note principal, $10,000.
- 4. Capital outlay: additional equipment purchased January 3, $30,000, expected to last 6 years and have a $6,000 salvage value.
- 5. Other current operating items paid with cash, $4,500.
There were no prepayals or unrecorded accruals at December 31, 20X1, and no additional debt was incurred during the year.
Compute for the Family Services agency, for the year ended December 31, 20X1, its total (a) Required expenses and (b) expenditures.
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At the beginning of the year, Omni Direction Health Services, a Health and welfare not-for-profit entity, had the following Net Assets balances:
Net Assets:
without donor restriction $980,000
with donor restriction $320,000
During the year a number of transactions occured. Using a 2-column schedule, show how each of the following transactions would affect the organization's two categories of Net assets. Show any reclassification necessary. Number each entry on your schedule to match the numbering below and provide a final total.
2. Paid salaries of $30,000 with $5,000 of that amount coming from restricted funds.
note:
two separate things should be recorded. One, there is a reduction (you show an addition) of 30,000 to net assets without donor restrictions because of the salaries expense. Then, there is a reclassification that reduces net assets with donor restrictions and increases net assets without donor restrictions because some previous donation has been used as the…
Family Services, a small social service nonprofit agency, began operations on January 1, 20X1, with $40,000 cash and $150,000 worth of equipment, on which $60,000 was owed on a note to City Bank. The equipment was expected to have a remaining useful life of 15 years with no salvage value. During its first year of operations, ending December 31, 20X1, Family Services paid or accrued the following:
A. Salaries and other personnel costs, $100,000
B. Rent and utilities, $24,000.
C. Debt service: interest, $5,500, and payment on long-term note principal, $10,000
D. Capital outlay: additional equipment purchased January 3, $30,000, expected to last 6 years and have a $6,000 salvage value.
E. Other current operating items paid with cash, $4,500.
There were no prepayals or unrecorded accruals at December 31, 20X1, and no additional debt was incurred during the year.
Required
Compute for the Family Services agency, for the year ended December 31,…
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred.
A business donated rent-free office space to the organization that would normally rent for $35,300 a year.
A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education.
Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued.
A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560.
Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…
Chapter 1 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 1 - Discuss (a) the similarities in accounting for...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Contrast the terms expense and expenditure.Ch. 1 - It was noted in this chapter that most of the...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - In which of the following situations would the...Ch. 1 - Legally adopted budgets of governmental funds are...Ch. 1 - Which of the following statements is false? A fund...Ch. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - (Expenditures vs. Expenses) Family Services, a...Ch. 1 - (Statement of Revenues and ExpendituresWorksheet)...Ch. 1 - Prob. 2P
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