FAS 116 deals with the benchmark standards and disclosure and reporting requirements for contributions received and contributions made and financial accounting. This Statement provides standards for acknowledging the dead lines of restrictions on contributions received and for accounting for art work collection, historical treasures, and similar assets maintained by the organizations. the accounting and financial statement disclosure to account for the given sum as unrestricted donations in the statement of activities.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19.2C

(a)

To determine

Introduction: FAS 116 deals with the benchmark standards and disclosure and reporting requirements for contributions received and contributions made and financial accounting. This Statement provides standards for acknowledging the dead lines of restrictions on contributions received and for accounting for art work collection, historical treasures, and similar assets maintained by the organizations.

the accounting and financial statement disclosure to account for the given sum as unrestricted donations in the statement of activities.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most of its funding comes from donations and bequests. It uses the deferral method to account for contributions and an encumbrance system to control expenditures. For simplicity, UH accounts for all of its activities through an operations fund. UH has provided the following selected transactions for the current year: a. At the beginning of the year, UH unexpectedly received $1,000,000 from the government to purchase three monitoring machines. UH immediately purchased the machines. Since UH purchased the machines as soon as the funds were received, it did not prepare a purchase order for them. At the end of the year, UH took depreciation of $200,000 on the machines. b. UH's annual Christmas fundraising gala generated $3,011,000 in cash and $820,000 in pledges. Based on previous years' experiences, UH estimates that 85 percent of the pledges will be collected in the first three months…

During the current year, a voluntary health and welfare organization receives $800,000 in unrestricted pledges. Of this amount, $300,000 has been designated by donors for use next year to support operations in the pharmacy. what amount of unrestricted support should the organizations recognize in its current-year financial statements? A.) $800,000 B.) $700,000 C.) $500,000 D.) $400,000

In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year? 4 O $1,600. O $1,000. O $2,300. O $1,300.