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 19EP
a)
To determine
State the list of modifications and corrections that should be made to the statement to ensure it is represented in conformance with GAAP.
b)
To determine
Explain the concern for the ECE regarding its audit based on the financial statements it has prepared.
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Choose a not-for-profit organization of interest to you, and locate its annual report or financial statements. Annual reports can usually be found on the organization's website. Note: If you have difficulty finding some organizations or the annual reports or financials, contact your instructor for assistance.
Find the line item totals for the following in the financial statements/annual report:
Total revenue,
Program service expenses, and
Total expenses.
Calculate the ratio of the program service expenses to the total expenses.
Post your findings on the discussion board along with your evaluation of the organization's effectiveness--based on the calculated ratio, do you believe they are managing their expenses well?
In responding to your peers, would you feel comfortable donating to the organization (based on their ratio, not necessarily other aspects of their work). Why or why not?
Your client is in the planning phase for a major plant expansion, which will involve the construction of a new warehouse. The assistant controller does not believe that interest cost can be included in the cost of the warehouse, because it is a financing expense. Others on the planning team believe that some interest cost can be included in the cost of the warehouse, but no one could identify the specific authoritative guidance for this issue. Your supervisor asks you to research this issue.
Instructions
If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses.
a. Is it permissible to capitalize interest into the cost of assets? Provide authoritative support for your answer.
b. What are the objectives for capitalizing interest?
c. Discuss which assets qualify for interest capitalization.
d. Is there a limit to the amount of interest that may be capitalized in a period?
e.…
You are the Treasurer for Short Run Sports Club and the manager asked you to prepare the financial statements for 2020 as he will need the information to apply for some grant funding. You already have the following information:
Receipts and payments account as at 30 June 2020
Balance b/d
Subscription
Entrance fees
Rental of hall
Rental of lockers
Canteen debtors
Independence fair
$
120,000
320,000
37,600
18,000
8500
345 200
172,300
Canteen creditors
Fixtures & fittings
Independence fair expenses
Wages for canteen staff
Laundry expenses
Prizes and trophies
Utilities
Honorarium -Admin staff
Repairs
Balance c/d
$
145,600
46,000
22,300
68,000
7600
8,800
9500
28000
4200
681,600
1,021,600
1,021,600
Additional information:
1 July 2019
30 June 2020
Club house
Fixtures and Fittings
Sports equipment
Canteen debtors
Canteen creditors
Canteen stock
Subscription un arrears…
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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