Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 18, Problem 44P
a.
To determine
Prepare a statement of activity for the current year.
b.
To determine
Prepare a
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The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $118,000; contributions receivable (net) of $218,000;
investments of $318,000; and land, buildings, and equipment of $218,000. In addition, its unrestricted net assets were $436,000,
temporarily restricted net assets were $118,000, and permanently restricted net assets were $318,000. Of the temporarily restricted
net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction
was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted.
During the current year, the entity has the following transactions:
• Computed interest of $38,000 on the contributions receivable.
• Received cash of $118,000 on the contributions and wrote off another $5,800 as uncollectible.
• Received unrestricted cash gifts of $198,000.
Paid salaries of $108,000 with $33,000 of that amount coming from…
The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000,
investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported
as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted
whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent
of the purpose restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of
officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired.
Watson has one program service (health care) and two supporting services (fundraising and administrative).
During the current year, Watson Foundation has the following transactions.
1. Computed interest of…
The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired. Watson has one program service (health care) and two supporting services (fundraising and administrative).
During the current year, Watson Foundation has the following transactions.
Computed interest of…
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