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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Question
Chapter 14, Problem 14.12EP
To determine
Identify the manner in which Center E should record the pledge.
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Good Charity is a new not-for-profit organization that opened in January 2020. It is funded by government grants and private donations. It prepares its annual financial statements using the deferral method of accounting for contributions and uses only one fund to account for all activities.
Required:
1) Prepare all related journal entries for the following transactions for Good Charity for 2020:
a) Jan 1: a donor contributes land for a future operations site. Land has a fair value of $32,000.
b) Feb 1: A donor contributes $60,000 on the condition that the principal amount be invested in marketable securities and that only the income earned from the investment be spent on operations. Income of $2,000 was earned and received during 2020 on these investments.
c) General donations of $85,000 were received during 2020.
d) Feb 1: the government gave $80,000 to Good Charity to purchase equipment and furniture with a useful life of 10 years. This was all used to…
In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be
used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received
pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received
next year. How much would Save the Butterflies report as contributions with donor restrictions in the current
year?
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O $1,600.
O $1,000.
O $2,300.
O $1,300.
On Jan 1, 2020 Charity Co., a not-for-profit
organization, had an anonymous donor donate land
with a fair value of $40 as well as machinery valued
at $100. The machinery has a useful life of six years.
Charity has a Dec 31 year end.
Required:
1)Assuming that the restricted fund method of
accounting for contributions is used and the
organization has a general fund and a capital fund.
a) Prepare the necessary 2020 journal entries to
record the 2020 transactions noted above.
b) Indicate the effect of the transactions on 2020
excess of revenue over expenses.
2) Repeat (a) & (b) above assuming instead that the
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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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