Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members getnothing in return for their dues. The entity has consistently recorded the cash collections as an increase incash and an increase in exchange revenues under net assets without donor restrictions. The board oftrustees has had a policy for several years that 10 percent of the money collected be set aside andinvested with the money held for emergency purposes. Cash is decreased and "investments held foremergencies" are increased with each purchase.Required:a. What was the appropriate amount of net assets without donor restrictions at the end of Year 1?Net assets without donor restrictions at the end of Year 1b. What was the appropriate amount of net assets without donor restrictions at the end of Year 2?Net assets without donor restrictions at the end of Year 2c. What was the appropriate amount of net assets with donor restrictions at the end of Year 2?Net assets with donor restrictions at the end of Year 2 !Required informationProblem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8)[The following information applies to the questions displayed below.]For a number of years, a private not-for-profit entity has been preparing financialstatements that do not necessarily conform to U.S. generally accepted accountingprinciples. At the end of the most recent year (Year 2), those financial statements showtotal assets of $900,000, total liabilities of $100,000, net assets without donor restrictionof $400,000, and net assets with donor restrictions of $400,000. This last category iscomposed of $300,000 in net assets with purpose restrictions and $100,000 in netassets that must be permanently held. At the end of Year 1, financial statements showtotal assets of $700,000, total liabilities of $60,000, net assets without donor restrictionof $340,000, and net assets with donor restrictions of $300,000. This last category iscomposed of $220,000 in net assets with purpose restrictions and $80,000 in net assetsthat must be permanently held. Total expenses for Year 2 were $500,000 and reportedunder net assets without donor restrictions. Each part that follows should be viewed as anindependent situation.

Private not for profit organization It is the private foundation which is engaged in social or…

Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members get nothing in return for their dues. The entity has consistently recorded the cash collections as an increase cash and an increase in exchange revenues under net assets without donor restrictions. The board of trustees has had a policy for several years that 10 percent of the money collected be set aside and invested with the money held for emergency purposes. Cash is decreased and "investments held for emergencies" are increased with each purchase. Required: a. What was the appropriate amount of net assets without donor restrictions at the end of Year 1? Net assets without donor restrictions at the end of Year 1 b. What was the appropriate amount of net assets without donor restrictions at the end of Year 2? Net assets without donor restrictions at the end of Year 2 c. What was the appropriate amount of net assets with donor restrictions at the end of Year 2? Net assets with donor restrictions at the end of Year 2

Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members get nothing in return for their dues. The entity has consistently recorded the cash collections as an increase cash and an increase in exchange revenues under net assets without donor restrictions. The board of trustees has had a policy for several years that 10 percent of the money collected be set aside and invested with the money held for emergency purposes. Cash is decreased and "investments held for emergencies" are increased with each purchase. Required: a. What was the appropriate amount of net assets without donor restrictions at the end of Year 1? Net assets without donor restrictions at the end of Year 1 b. What was the appropriate amount of net assets without donor restrictions at the end of Year 2? Net assets without donor restrictions at the end of Year 2 c. What was the appropriate amount of net assets with donor restrictions at the end of Year 2? Net assets with donor restrictions at the end of Year 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. The Foundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year: Account: Accounts payable Accounts receivable (net) Accrued interest receivable Accumulated depreciation. Cash Contributed services Contributions-no restrictions Contributions-purpose restrictions Contributions-endowment Current pledges receivable Education program expenses Fund-raising expenses Investment revenue-purpose restrictions Training seminars expenses Land, buildings, and equipment Long-term investments Management and general expenses Net assets without donor restrictions Net assets with donor restrictions Net gains on endowments-no restrictions Noncurrent pledges receivable Program service revenue-no restrictions Debits $47,700 16,700 117,300 80,800 1,538,100 124,300 4,550, 100 5,614,700 2,743,500 408,600 390, 200 Credits $25,100 267,400 215,600…
4 A non profit organization has two programs (A and B), each of which has its own fund. The organization has a debt service fund and a general operating fund (which handles the unrestricted transactions). For the following events show the effect on the fundamental equation of accounting for each of the affected funds: 1.a) The organization charges out its Operation Department to each program equally, at $1,000 each, for services performed to maintain property, plan, and equipment. The programs pay with cash. ( 1.b) The organization transfers $20,000 to the debt service fund.
The Senior League, a not-for-profit welfare agency, redeemed a $100,000 bond that it had held as an investment of resources without donor restrictions. It also received an interest payment of $6,000. In its statement of cash flows, the league should report： A.) $106,000 as a cash flow from investing activities B.) $106,000 as a cash flow from operating activities C.) $100,000 as a cash flow from investing activities and $6,000 as a cash flow from financing activities D.) $100,000 as a cash flow from investing activities and $6,000 as a cash flow from operating activities
At the beginning of the year, the Baker Fund,a nongovernmental not-for-profit corporation,received a $125,000 contribution restrictedto youth activity programs. During the year,youth activities generated revenues of$89,000 and had program expenses of$95,000. What amount should Baker reportas net assets released from restrictions forthe current year?
The University is given a gift of $500000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 7 years then the rate drops to 6.40%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? S Do not use dollar signs or commas in your answer. Include two decimals. in your answer.
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…
Please explain also.
Hw.17.
Edwards Center for GNP Accounting, a nonprofit organization, receives a letter from a donor that includes a promise to donate $100,000 in the next fiscal year provided the Center raise an equal amount of cash from other donors. What journal entry will be recorded when the letter is received? No journal entry would be recorded. Debit cash $100,000; credit refundable advance $100,000 Debit pledge receivable $100,000; credit contribution revenue with donor restrictions $100,000 Debit pledge receivable $100,000; credit contribution revenue without donor restrictions $100,000 Debit pledge receivable $100,000; credit refundable advance $100,000
Palestine College, a not-for-profit institution, engaged in the following transactions during its fiscal year ending June 30, 2018. Prepare appropriate journal entries, indicating the net asset category affected (with donor restrictions or without donor restrictions). 1. The college collected student tuition $8 million as follows: $1,500,000 was applicable to the Summer Semester, which ran from June 1 to August 30, and the rest was applicable to the coming Fall Semester (September-December). 2. Using funds restricted for this purpose, the college purchased $300,000 of equipment for their movie theater. The college charged depreciation of $30,000. 3. The annual alumni campaign yielded $2,800,000 in pledges. The college estimated that 2 percent would be uncollectible. During the year the college collected $2,400,000 on the pledges.
Ishak Center for Families, a nonprofit organization, receives $300,000 from a donor who requires that the Center raise $300,000 in matching funds, or the Center will have to return the $300,000. What journal entry would the Center record upon receipt of the gift? Debit cash $150,000; credit deferred revenue $300,000 Debit cash $300,000; credit contribution revenue with donor restrictions $300,000 Debit cash $300,000; credit contribution revenue without donor restrictions $300,000 No entry would be recorded
I have completed everything except for the unrestricted amounts. I can't seem to figure those out. Can someone please help? Problem: The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2020: Cash and cash equivalents, governmental activities $ 420,000 Cash and cash equivalents, business-type activities 884,000 Receivables, governmental activities 498,000 Receivables, business-type activities 1,471,000 Inventories, business-type activities 576,000 Capital assets, net, governmental activities 14,953,000 Capital assets, net, business-type activities 7,864,000 Accounts payable, governmental activities 719,000 Accounts payable, business-type activities 619,000 General obligation bonds, governmental activities 8,637,000 Revenue bonds, business-type activities 3,554,000 Long-term liability for compensated…