Exam 18: A: Accounting for Not-For-Profit Entities

A not-for-profit entity (Charity A) raises money for other charitable entities. Charity A receives $10,000 to distribute to Charity B. -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.

In not-for-profit accounting, an acquisition occurs when one not-for-profit entity obtains:

Wakefield Home is a private not-for-profit health care entity offering services for a fee. In the first quarter of 2017, Wakefield Home rendered services of $300,000 to patients. Of this amount, patients bear responsibility for 75% and the remaining amount is to be paid by third-party insurance providers. However, at the end of 2017, Wakefield Home realizes that $25,000 of the patients' responsibility to pay their share of the billed amounts is estimated to be uncollectible and $3,000 of the amounts from the third-party payors will not be collected. -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.

What is the appropriate account to credit when estimating a portion of health care entity's receivables that will prove to be uncollectible?

During 2018, 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 for building a new animal shelter.Also during 2018, 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 2018, according to ASU 2016-14.

What criteria must be met before a not-for-profit entity can recognize contributed services as a means of support?

A not-for-profit entity provides the following information for the year 2017: Required: Prepare the journal entries for these transactions for the year 2017.

For the month of December 2017, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. -$520,000 of the $2,720,000 was expected to be uncollectible. Required: Prepare the necessary journal entry to record the anticipated uncollectible amount.

Which of the following statements is required for voluntary health and welfare entities, but not for other not-for-profit entities?

Wakefield Home is a private not-for-profit health care entity offering services for a fee. In the first quarter of 2017, Wakefield Home rendered services of $300,000 to patients. Of this amount, patients bear responsibility for 75% and the remaining amount is to be paid by third-party insurance providers. However, at the end of 2017, Wakefield Home realizes that $25,000 of the patients' responsibility to pay their share of the billed amounts is estimated to be uncollectible and $3,000 of the amounts from the third-party payors will not be collected. -Record the journal entries that reflect all of this information.

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

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

Which of the following types of health care entitys recognize depreciation expense?

Give several examples, by name, of specific not-for-profit entities that are voluntary health and welfare entities.

How are investments in equity securities with readily determinable market values, and their related unrealized gains and losses, reported by a not-for-profit entity?

What is the appropriate account to debit when reducing net patient service revenue as a result of arrangements with third party payors?

When are unconditional promises to give recognized as revenues?

How does a recipient not-for-profit entity record the receipt of a gift that will be transferred without restriction to another charitable entity? What if the donor retains the right to revoke or redirect the gift?

Which account should be credited to record a gift of cash which is from an outside party to an animal rescue agency and is used for expenses to care for the animals?

Reciprocal transfers where both parties give and receive something of value are