December 31, 2020 December 31, 2019Contributions due in less than one year $2,293,775 $2,305,753Contributions due in one to five years 5,454,320 6,272,198Contributions due in more than five years 1,098,384 1,696,768Total Contribution $8,846,479 $10,274,719LessAllowance for bad debts 166,972 398,723Discount to net present value 497,812 710,124Net Contribution $ 8,181,695 $ 9,165,872Without Donor's Restrictions With Donor's Restrictions2020 2019 2020 2019Contributions due in less than one year $2,293,775 $2,305,753Contributions due in one to five years 5,454,320 6,272,198Contributions due in more than five years $1,098,384 $1,696,768The discount rates used on long-term promises to give were 3 percent in 2020and 2019.Suppose that the foundation was to prepare the statement of financial position incolumnar form, one column for net assets without donor restrictions, and anotherfor net assets with donor restrictions. In which column would these receivables bereported? Explain.Suppose that on December 31, 2020, the foundation collected $500,000 of the$1, 098,384 due over a five-year period. Prepare the appropriate journal entries torecord the collection of the $500,000 and to adjust the remaining balance in thereceivables account. Be sure to recognize interest on the balance of thecontributions due in over five years and one to five years (less the discount).Another note to the statements indicates that the foundation has made grants tovarious other organizations. Some of these are payable over a five-year period.Accordingly, it adjusted its grants payable account to take into account the timevalue of money and applied a discount rate of 3 percent. However, per the note,the grants are classified as Level 3 in accordance with the fair value hierarchy andhave been valued using an income approach. What are the different valuationtechniques? What is level 3 classification? Explain this in simple words.

Donors to a nonprofit organization have the option of designating or restricting the use of their…

December 31, 2020 December 31, 2019 Contributions due in less than one year $2,293,775 $2,305,753 Contributions due in one to five years 5,454,320 6,272,198 Contributions due in more than five years 1,098,384 1,696,768 Total Contribution $8,846,479 $10,274,719

December 31, 2020 December 31, 2019 Contributions due in less than one year $2,293,775 $2,305,753 Contributions due in one to five years 5,454,320 6,272,198 Contributions due in more than five years 1,098,384 1,696,768 Total Contribution $8,846,479 $10,274,719

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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