Exam 18: Accounting for Not-For-Profit Entities

Which entry would be the correct entry to record pledges of $100,000 for a telethon event to raise money for a not-for-profit public television station? The public television entity estimates that 5% of the funds will be uncollectible. DEBIT CREDIT

A not-for-profit entity receives a computer as a donation (valued at $2,000).Prepare the journal entry for the transaction.

Dura Foundation, a voluntary health and welfare entity dedicated to finding medical cures and supported by contributions from the general public, included the following costs in its Statement of Functional Expenses for the year ended December 31, 2018: -What should Dura Foundation report as program service expenses?

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.

The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000. Required: Prepare the necessary journal entry to record the contractual adjustments.

Prior to ASU 2016-14, what are the three categories of net assets required by GAAP in reporting of a not-for-profit entity?

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.

During 2017, the Garfield Humane Society, a voluntary health and welfare entity, received cash donations of $892,000 and membership dues of $62,000.A member of the Humane Society donated services valued at $8,000 that would otherwise have been performed by a paid staff member.A pet food manufacturer donated dog food valued at $16,400.The Humane Society received a gift of $140,000, to be used in building a new animal shelter.Also during 2017, investments held by the Humane Society earned interest of $2,000. Required: Prepare a schedule showing the amount that the Garfield Humane Society should have recorded for contributions from public support for 2017.

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

$520,000 of the $2,720,000 was expected to be uncollectible. Required: Prepare the necessary journal entry to record the anticipated uncollectible amount.

The Wakefield Home incurred the following liabilities that need to be recorded at the end of 2017: $110,000 salaries, $30,000 medical equipment, $10,000 utilities expense. Prepare the journal entries for these transactions.

For a not-for-profit entity, when is recognition of contributions of artworks and historical treasures not required?

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

The following gifts are received in 2016 by a not-for-profit entity: I.$2,000 specified by the donor to be used to pay salaries. II.$10,000 specified by the donor for new conference room furniture. III.$5,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2017 and the conference room furniture is purchased in 2016. The donor did not specify any time restriction on holding the conference room furniture. -What amount should be reclassified on the Statement of Activities for 2017 from the Temporarily Restricted column to the Unrestricted column?

The Yelton Center is a voluntary health and welfare entity.During 2017, unrestricted pledges of $780,000 were received by the Yelton Center, sixty percent of which were fulfilled in 2017.Officials estimated that fifteen percent of the original amount of pledges will be uncollectible.The remainder of the amount expected to be collected from pledges will be received in 2018 (for use in 2018). Required: 1) Show with appropriate amounts how the Yelton Center would present the pledges on its Statement of Financial Position on the day the pledges are recorded in 2017. 2) Show with appropriate amounts the effect on net assets the Yelton Center would report for contributions for 2017.

Which of the following is a voluntary health and welfare entity?

For a not-for-profit entity, what are supporting services expenses?

Which statement below is not correct for financial statements of not-for-profit entities?

Which of the following types of health care entities follow FASB Accounting Standards Codification for preparing financial statements?

Which entry would be the correct entry on the not-for-profit entity's books to record a donor's gift when the donor retains power over the assets? DEBIT CREDIT