Among the transactions and events of Lifegroup School, a non-profit secondary school for the year ended June 30, 20X1, are the following: • Paid P50,000 from the Unrestricted Fund for classroom computers to be carried in the Plant Fund. • Received an unrestricted cash gift of P200,000. • Disposed of common stocks for P110,000, which had been carried in the Quasi-Endowment Fund at P100,000. There were no restrictions on the use of the proceeds attributable to the gain. • Constructed a new school building at a total cost of P2,000,000. A payment was made composed of P250,000 from the Plant Fund and P1,750,000 obtained on a 5% mortgage note payable. Prepare the journal entries for the transactions of Lifegroup School for the year ended June 30, 20X1.

Among the transactions and events of Lifegroup School, a non-profit secondary school for the year ended June 30, 20X1, are the following: • Paid P50,000 from the Unrestricted Fund for classroom computers to be carried in the Plant Fund. • Received an unrestricted cash gift of P200,000. • Disposed of common stocks for P110,000, which had been carried in the Quasi-Endowment Fund at P100,000. There were no restrictions on the use of the proceeds attributable to the gain. • Constructed a new school building at a total cost of P2,000,000. A payment was made composed of P250,000 from the Plant Fund and P1,750,000 obtained on a 5% mortgage note payable. Prepare the journal entries for the transactions of Lifegroup School for the year ended June 30, 20X1.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 16CE

See similar textbooks

Similar questions

The following selected transactions occurred for a nongovernmental, not-for-profit organization. 1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250. 2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year. For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased. A cash gift of $200 was received restricted for the purchase of equipment. Equipment of $80 was purchased from the gift restricted for this purpose. Depreciation expense for the year on the equipment purchased is $10. Required: Prepare the journal entries for the above…
During the year, Private College received the following: An unrestricted $10,000 pledge to be paid the following year. A $70,000 cash gift restricted for scholarships. A notice from a recent graduate that the college is named as a beneficiary of $25,000 in that graduate's will. What amount of contribution revenue should Private College report in its statement of activities? A.) $10,000 B.) $70,000 C.) $105,000 D.) $80,000
The Western Falls School District received a $ 100,000 gift from a wealthy alumnus , and an agreement was reached that $10,000 per year would be paid to the valedictorian of the high school class as a freshman scholarship to college , until the funds were depleted . The $ 100,000 would be accounted for as : OA Private - Purpose Trust Fund A custodial fund An Expendable Trust Fund An investment trust fund
Fruits & Veggies, a nonprofit, conducts two types of programs: education and research. It does not use fund accounting. During the fiscal year, the following transactions and events took place. Prepare journal entries for these transactions, identifying increases and decreases by net asset classification as appropriate. 1. Pledges amounting to amount pledged. $180,000 were received, to be used for any purpose designated by the trustees. Fruits & Veggies normally collects 90 percent of the amount pledged.2. Fruits & Veggies collected $171,000 in cash on the amount pledged in the previous transaction. It wrote off the balance as uncollectible.
Topic: Accounting For Non-Profit Organization
ni.9
Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of the grant mentioned in item (a) had been applied to the purpose stipulated. c. The grant provided that amounts not awarded by year-end are to be transferred to the endowment fund. The liability to that fund is recorded. d. An alumnus, who was a former athlete, contributed $15,000 to assist in the search for a basketball coach.
7. Determine the amount of the donation deduction for each of the following situations: (Assume all organizations are qualified public charities) A. Personal furniture given to a local church. FMV $500 basis $2,000 B. A coin collection given to the YMCA. FMV $3,000 basis $1,000 C. Stock held or 5 years given to a local charity. FMV $5,000 basis $2,000 D. Stock held for 5 months given to a local charity. FMV $5,000, basis 2,000 E. An oil painting with a FMV $100,000 basis $40,000. The painting is given to museum and the museum plans to display the painting. F. Same as (E) above except the painting is given to the Heart Association to be sold at the annual fundraising event.
Topic: Accounting For Non-Profit Organization
The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following transactions and was affected by the following events (in summary form): 1. It recieved a $10,000,000 endowment contribution from a donor, all in stocks and in bonds. 2. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in contributions without donor restrictions. 3. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years. 4. It recognized depreciation on the furniture, fixtures and equipment, purchased earlier in the year. 5. It spend $2,400,000 on educational programs. 6. It earned $300,000 in interest and dividends on its endowmnet investments. 7. By year-end the value of its investments had appreciated by $600,000 8. It incurred $1,300,000 in administrative expenses.…
A nongovernmental, not-for-profit organization received the following donations of corporate stock during the year: Donation 1 Donation 2 Donation 3 Number of shares 2,000 3,000 1, 000 Adjusted basis $8,000 $5,500 $3,000 Fair market value at time of donation 8,500 6,000 $4,000 Fair market value at year end 10,000 2,000 $2,500 What net value of investments will the organization report at the end of the year? A.) $14,500 B.) $14,000 C.) $13,500 D.) $12,000
A private not-for-profit entity receives three large cash donations:One gift of $70,000 is unrestricted.One gift of $90,000 is restricted to pay the salary of the organization’s workers.One gift of $120,000 is restricted forever with the income to be used to provide food for needy families.Which of the following statements is not true? Choose the correct.a. Temporarily restricted net assets have increased by $90,000.b. Permanently restricted net assets have increased by $210,000.c. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount.d. When the donated money is spent for salaries, temporarily restricted net assets will decrease.