Concept explainers
(a)
Introduction: The University of Notre Dame or Notre Dame is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The cash donations made to the university in the recent year for the acquisition of building and equipment.
(a)
Answer to Problem 19.7C
Around $728 million has been contributed by the donors to the catholic research University for Acquisition of building and equipment.
Explanation of Solution
Notre dame receives thousands of dollars in donations for carrying on the activities of the church and forwarding its mission. The endowment note and the restricted net assets disclosed in the annual report states that around $728 million were received as temporarily restricted donations for acquisition of buildings and equipment.
(b)
Introduction: The University of Notre Dame or Notre Dame is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The criteria for determining what information to disclose in the non-operating section of the statement in unrestricted net assets.
(b)
Answer to Problem 19.7C
Non-operating section of the statement of unrestricted net assets is that section which specifies income from those activities that are not related to the core activities of the organization. So, the church puts all the unrestricted gifts, donations and contributions and the like under this section.
Explanation of Solution
The statement of net assets disclosed the following items are disclosed in the non-operating section:
- Unrestricted contributions for endowments
- Contributions for obtaining physical activities
- Donation for acquisition of equipment
- Gain or loss on sale of investment or other financial instruments
- Income from non- recurring activities
(c)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The amount of net assets released for operations.
(c)
Answer to Problem 19.7C
An amount of $21,956,000 were released for operations as per the statement of changes in unrestricted net assets.
Explanation of Solution
The statement of changes in unrestricted net assets states that the restrictions are reflected in two different places, operating and non- operating section. An amount of $21,956,000 were released for operations as per the statement of changes in unrestricted net assets.
(d)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The accounting policy for the art collection of the church.
(d)
Answer to Problem 19.7C
The University does not capitalize the value of its art collection, that is, it does not reflect the same as capital assets.
Explanation of Solution
The University does not capitalize the value of its books and nor does it record the fair value of its art collection. The art collection is held for exhibition and educational purposes and not for financial gain.
(e)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The interest rate to determine the present value of multiyear pledges.
(e)
Answer to Problem 19.7C
The University has used a percentage of 0.4% to determine the present value of multi year pledges.
Explanation of Solution
Pledges in the form of unconditional promises are to be recognized at fair value as restricted contributions in the period such promises are made by donors. These contributions are discounted at a risk adjusted rate commensurate with the duration of donor’s payment plan.
(f)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The amount of contributions that is unrestricted in nature.
(f)
Answer to Problem 19.7C
The University has received $48,908,000 of unrestricted contributions
Explanation of Solution
The contribution receivables note disclose that the gross amount of the contributions receivables is disclosed as $48,908,000 and also the amount of restricted contributions in the
(g)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The amount of unrestricted net assets designated by the board.
(g)
Answer to Problem 19.7C
The unrestricted net assets designated by the board is $4,580,318
Explanation of Solution
The statement of financial position discloses that the amount of unrestricted net assets is mentioned under the net assets section of the statement.
(h)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
Whether the given statement is true or false.
(h)
Answer to Problem 19.7C
The given statement is true
Explanation of Solution
The operating expenses of the university are disclosed in the statement of changes in unrestricted net assets. The functional categories report the operating expenses after the cost of operations,
(i)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
Whether the given statement is true or false.
(i)
Answer to Problem 19.7C
The given statement is true
Explanation of Solution
In the university statement of financial position, land, buildings, and equipment net of depreciation are reported in the unrestricted net assets section.
(j)
Introduction: The University of Notre Dame or Notre Dame University is a private catholic research university situated in Notre Dame, Indiana. The University is known for its athletic teams and well known consistently strong football team.
The total
(j)
Answer to Problem 19.7C
The amount is conclusive.
Explanation of Solution
In the statement of financial position, the restricted net assets and endowment section discloses that the permanently restricted assets are provided as a single amount for investment in all the three categories making it difficult to trace the amount.
Want to see more full solutions like this?
Chapter 19 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
- Accounting 41arrow_forwardRobertson Corp. expects to sell 32,500 units. Each unit requires 5 pounds of direct materials at $18 per pound and 2.5 direct labor hours at $14 per direct labor hour. The overhead rate is $10 per direct labor hour. The beginning inventories are as follows: direct materials, 3,200 pounds; finished goods, 4,000 units. The planned ending inventories are as follows: direct materials, 5,500 pounds; finished goods, 4,200 units. What is the planned production?arrow_forwardMoti Bakery produces various baked goods. Utility costs are allocated to the products based on the baking time required for each product. Total utility costs of $270,000 are budgeted in a period when 540,000 total minutes of baking time are anticipated. If a batch of bagels bakes for 25 minutes, what amount of utility cost will be allocated to the bagels?arrow_forward
- he following is a December 31, 2024, post-dosing trial balance for Almway Corporation. Account Title Debits Credits Cash 45,000 Investments 110,000 Accounts receivable 60,000 Inventories 200,000 Prepaid insurance (for the next 9 months) 9,000 Land 90,000 Buildings 420,000 Accumulated depreciation-buildings $ 100,000 Equipment 110,000 60,000 10,000 75.000 130.000 20.000 240,000 300.000 129.000 Accumulated depreciation-equipment Patents (net of amorization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained eamings Totals Additional information: $ 1,054,000 $ 1,054,000 1. The investment account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale. 3. The cash account includes $15,000…arrow_forwardWhich is not a Risk Assessment Procedure?a. Ratio Analysisb. Observation of Activitiesc. Account Receivable confirmationsd. Inspection of Documentse. Inquiry of Internal Auditors Is it a or c ???arrow_forwardCalculate Pankaj's net income for the yeararrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education