Exam 18: Accounting and Reporting for Private Not-For-Profit Organizations

Historically, what pattern of reporting was used by private not-for-profit entities?The same as used with respect to for-profit entities.Reporting that utilizes a fund accounting approach.A pattern of reporting that does not consider the entire entity.

Which of the following is not a benefit of Internal Revenue Code Section 501(c)(3) status?

Unconditional promises to transfer cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition of:

Assume that the donor retains the right to revoke or redirect the gift.Prepare the journal entries for Charity A and Charity B. The entries should be for the gift when received by Charity A, and when the gift is distributed for Charity B.

Record the journal entries that reflect all of this information.

For November 2021, Harleytown Hospital's charges for patient services were $716,000, of which 85% was billed to third-party payors.Required:Prepare the journal entry to accrue patient charges for the month.

The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,790,000.Required:Prepare the necessary journal entry to record the contractual adjustments.

Which entry would be the correct entry on the not-for-profit entity's books to record a donor's gift when the money is simply passing through the not-for-profit entity, it creates no direct benefit, and control of the assets has been relinquished by the donor?

For not-for-profit entities, what is the difference in identification of "control" between a merger and an acquisition?

Assume there are no donor rights to revoke or redirect the gift.Prepare the journal entries for Charity A when the gift is received, and for Charity A and Charity B when the gift is distributed.

Prepare the necessary journal entry to record the revenue and receivables.

Rainbow Childcare Agency is a private not-for-profit entity providing child care for a fee. The agency has a permanent endowment and the income may be used to sponsor families that are unable to pay for services but the principal must be preserved. In addition, various fundraising activities take place during the year.When the agency held its annual holiday fundraiser in 2020, pledges of $75,000 were received. The administration expected 6% of the pledges to be uncollectible.In addition, income of $12,500 was received from the permanent endowment to sponsor children to be placed with foster families.Prepare the journal entries for these transactions.

A not-for-profit entity receives a computer as a donation (valued at $3,000). Prepare the journal entry for the transaction.

A not-for-profit entity provides the following information for the year 2020: Required:Prepare the journal entries for these transactions for the year 2020.