Exam 18: Accounting for Not-For-Profit Organizations

Which entry would be the correct entry to record pledges of $100,000 to a public television fundraiser? The public television organization estimates that 5% of the funds will be uncollectible.

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

Which entry would be the correct entry to record that a not-for-profit organization collected $80,000 of amounts pledged and wrote off $3,000 of amounts pledged as amounts uncollectible?

Give several examples of voluntary health and welfare organizations.

On a statement of functional expenses for a voluntary health and welfare organization,how are expenses classified?

For a voluntary health and welfare organization,what are supporting services expenses?

What is the basis used in reporting the Statement of Activities and Changes in Net Assets?

During 2008,the Garfield Humane Society,a voluntary health and welfare organization,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 2008,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 public support for 2008.

The Home incurred the following liabilities: $110,000 salaries,$30,000 medical equipment,$10,000 utilities expense. Prepare the journal entries for these transactions.

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

REFERENCE: Ref.18_04 A not-for-profit organization (Charity A)raises money for other charitable organizations.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.

What criteria must be met before a voluntary health and welfare organization can recognize donated services as a means of support?

REFERENCE: Ref.18_03 Dura Foundation,a voluntary health and welfare organization 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 31,2008: -What should Dura Foundation report as program service expenses?

According to FASB Statement 117,how are not-for-profits to utilize separate funds?

A local business donated medical supplies to Wakefield with a value of $40,000. Prepare the journal entry for the receipt of these supplies.

A local social worker,earning $12 per hour working for the state government,contributed 600 hours of time at no charge to the Yelton Center,a voluntary health and welfare organization.Except for these donated services,an additional staff person would have been hired by the organization. Required: How should the Yelton Center record the contributed services?

What term is used by voluntary health and welfare organizations for contributions?

What is the appropriate account to credit when estimating a portion of receivables that will prove to be uncollectible?

Unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction is the SFAS 116 definition for

REFERENCE: 18_01 The following gifts are received in Year One by a not-for-profit organization: I.$2,000 specified by the donor to be used to pay salaries. II.$10,000 for new conference room furniture. III.$5,000 to be held for one year before being expended. The salaries are paid in Year Two and the conference room furniture is purchased in Year One. -How much should be reclassified on the Statement of Activities in Year Two from the Temporarily Restricted column to the Unrestricted column?