None The Lake Coast bank is holding a $750,000 donation in an independent permanent trustwith the investment income dedicated for use by Lake Hospital for operating purposes.The $750,000 principal should be:Reported as an asset limited as to use by the hospital.Reported as non-operating revenue of the hospital.Reported as a donor restricted net asset of the hospital.Disclosed in notes to the financial statements of the hospital.

Disclosed in notes to the financial statements of the hospital:Explanation: This option suggests…

Answered: The Lake Coast bank is holding a…

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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A local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets. The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs. Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries. Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose. Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors. Calculated depreciation expense of $38,000. Received interest income of $15,000 on the investments the board acquired in transaction (a) Estimated that…
A citizen group raised funds to established an endowment for the Eastville City Liabrary. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for the library. A preclosing trial balance of the library permanant fund follows: Debits: Cash $7,500; Investments $630,000; Expenditures - subscriptions $39,500 Accrued interest receivable $2,000 Credits: Additions to permanant endowments $625,000; Investment Income $48,000; Net increase in fair value of investments $5,000; Accounts Payable Required: A. Prepare any closing entries necessary at year-end b. prepare a Statement of Revenuess, Expenditures, and Changes in Fund Balance for the library Permanant fund. c. Prepare a balance sheet for the library permamant fund (use restricteed to Library for any spendable fund balance)
A local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.a. The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs.b. Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries. c. Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose.d. Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors.e. Calculated depreciation expense of $38,000.f. Received interest income of $15,000 on the investments the board acquired in…
Ross Hospital’s accounting records disclosed the following information: Net resources invested in plant assets (hospital policy is to release donor restrictions when assets are placed in service) . . . . . . . $10,000,000Board-designated funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000What amount should be included as unrestricted net assets?a. $12,000,000b. $10,000,000c. $2,000,000d. $0
Determine the amount of revenue recognized for each of the following items and whether the revenue would be classified as net assets with donor restrictions or net assets without donor restrictions. 1. 77000 of promises to give to program activities. 2. 675000, services are donated that meet the recognition of services definition. 3. 274000 cash received. Restricted to 52000 for scholarships and the rest for acquisition of capital project. 4. 572000 of unconditional promises to give to support activities. 5. A donor contributes 729000 cash to set up a donor‐restricted endowment fund. The income is restricted to support program purposes. 6. A donor contributes cash to set up an annuity trust with a present value of 742000. Net assets with donor restrictions is 649000 Net assets without donor restrictions is 2420000.
5-6. A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for the library. A preclosing trial balance of the library permanent fund follows: Trial Balance-December 31, 2024 Cash Investments Additions to permanent endowments Investment income Expenditures-subscriptions Net increase in fair value of investments Accrued interest receivable Accounts payable Debits $ 7,500 631,000 36,700 1,000 $676,200 rage 140 Credits $625,000 42,500 6,000 2,700 $676,200 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. c. Prepare a Balance Sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).
The General Fund of the Town of Mashpee transfers $115,000 to the debt service fund for a $100,000 principal and $15,000 interest payment. The recording of this transaction would include: a. A debit to Interest Expenditures in the General Fund. b. A debit to Interest Expenditures in the governmental activities accounts. c. A credit to Other Financing Sources - Interfund Transfers In in the debt service fund only. d. A credit to Other Financing Sources - Interfund Transfers In in both the debt service fund and governmental activities accounts.
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.
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.
A $5,000,000 bond is issued by Northern City to build a new hospital and the proceeds of the bond are received directly by the fund that will be disbursing the monies for the hospital construction. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.
Which statement below best describes the entities that can accept donations from the public and provide donors with documentation to allow them to claim a tax deduction in respect of their donation? a. A local state school. b. A private hospital. c. Only entities classified as a deductible gift recipient (DGR) as they meet the necessary requirements to be registered by the ATO. d. Any not for profit organisation.
Help me with this entry Journal entries for an Internal Service Fund The following transactions occurred regarding the Central Purchasing Fund, an Internal Service Fund.1. The General Fund transferred $160,000 as a capital contribution to establish the fund.2. The Central Purchasing Fund bills $320,000 for services it provided to other funds.3. The Central Purchasing Fund incurred depreciation expense of $80,000 and paid$400,000 in operating expenses.4. The General Fund subsidized the operations of the Purchasing Fund by transferring anadditional $160,000 to the fund.For each transaction, record the entry, if any, for each Fund. If no entry is required, select 'No debit (or credit) entry required' in the account field and enter 0 or leave the debit and credit fields blank.

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