Exam 18: A: 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

When individuals are considering whether to make a donation to a not-for-profit entity, the answer to which of the following questions is not typically sought?

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

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

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. -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.

On a Statement of Activities for a not-for-profit entity, what are the broad categories of supporting service costs required to be reported?

Historically, what pattern of reporting was used by private not-for-profit entities? (1) The same as used with respect to for-profit entities. (2) Reporting that utilizes a fund accounting approach. (3) A pattern of reporting that does not consider the entire entity.

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

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

Which one of the following financial statements is not required by GAAP regarding a voluntary health and welfare entity?

Which entry would be the correct entry to record that a not-for-profit entity collected $80,000 of amounts pledged and also wrote off $3,000 of amounts pledged that were previously estimated as amounts uncollectible? DEBIT CREDIT

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

What financial statements would normally be prepared by a voluntary health and welfare entity?

Turnaround 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 2017, pledges of $50,000 were received.The administration expected 5% of the pledges to be uncollectible. In addition, income of $10,000 was received from the permanent endowment to sponsor children to be placed with foster families. Prepare the journal entries for these transactions.

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. -With respect to the donations received in 2016, what amount should be reported in the Statement of Activities as net increase to Temporarily Restricted Net Assets for the year 2016?

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.

A gift to a not-for-profit school that is not restricted by the donor is recorded with a credit to:

Which entry would be the correct entry to record that a hospital has provided patient services for $200,000, of which 25% will be billed to a third party? DEBIT CREDIT

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?

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.