Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 14, Problem 13C
To determine
Identify the standard setting bodies would the auditor look for accounting and financial reporting standards to assist him in evaluating whether the AH center and museum’s financial statements are in conformity with GAAP. Explain the reasons for such conclusion.
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E13.1 Reporting Various Contributions
The Castile County Rescue Mission receives the following donations:
1. A donor contributes cash, with no restrictions or conditions.
2. An accountant provides services in completing and filing Form 990.
3. Volunteers provide services in staffing the local soup kitchen.
4. A donor signs an agreement promising to contribute cash in two years.
5. A donor contributes land with no restrictions as to use.
6. A donor contributes cash, specifying that it be used to support a program to teach life skills to battered women.
Required
Identify how each contribution is reported on the Mission’s statement of activities. The contribution either (a) increases or decreases net assets without donor restrictions, (b) increases or decreases net assets with donor restrictions, or (c) is not reported as a change in net assets.
Transaction
Affects on net assets
1
2
3
4
5
6
3
During the year, a local merchant donated a building to the City of Stage Coach. The original cost of the building was $300,000.
Accumulated depreciation at the date of the gift amounted to $250,000. The acquisition value of the donation at the date of the
gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the
government-wide level?
Multiple Choice
$50,000.
$300,000.
$600,000.
$0.
Required information
[The following information applies to the questions displayed below.]
The Town of Elizabeth operates an old train station as an enterprise fund. The train station is on the national register of
historic buildings. Because the town has held the building for such a long time, the Central Station Fund has no long-term
debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses and
individuals rent space in the building for private events, and the town provides all services related to the operation and
maintenance of the building. Following is information related to the fund's operating activities.
1. Rental income of $94,394 was accrued based upon reservations.
2. Cash in the amount of $90,164 was received on accounts.
3. Cash expenses for the period included administrative services, $25,192; maintenance and repairs, $72,844; and utilities,
$30,106.
4. The Central Station Fund was awarded a $11,400 grant for historic…
Chapter 14 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - What is the value of reporting expenses by...Ch. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - What criteria must be met before an NFP...Ch. 14 - Prob. 8QCh. 14 - What are joint costs, and how are joint costs...Ch. 14 - Prob. 10Q
Ch. 14 - Prob. 11CCh. 14 - Prob. 13CCh. 14 - Prob. 14.1EPCh. 14 - According to GAAP, all not-for-profit...Ch. 14 - Prob. 14.3EPCh. 14 - In a local NFP elementary schools statement of...Ch. 14 - Prob. 14.5EPCh. 14 - Prob. 14.6EPCh. 14 - The Maryville Cultural Center recently conducted a...Ch. 14 - Prob. 14.8EPCh. 14 - Prob. 14.9EPCh. 14 - Prob. 14.10EPCh. 14 - Prob. 14.11EPCh. 14 - Prob. 14.12EPCh. 14 - Prob. 14.13EPCh. 14 - Prob. 15EPCh. 14 - Donated Services. (LO14-3) Indicate whether each...Ch. 14 - Prob. 17EPCh. 14 - Prob. 18EPCh. 14 - Prob. 19EPCh. 14 - Statement of Activities. (LO14-3) The Atkins...Ch. 14 - Prob. 21EPCh. 14 - Prob. 22EPCh. 14 - Prob. 23EPCh. 14 - Prob. 24EPCh. 14 - Prob. 25EP
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