Exam 18: Accounting for Not-For-Profit Organizations

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

Which entry would be the correct entry on the donor's books when the donor retains control of an asset that it contributes to a not-for-profit organization?

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

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

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?

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.

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

During 2011, 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 2011, 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 2011.

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retained by the donor?

What are third party payors? Why are their interests important in accounting for health care entities?

Give several examples of voluntary health and welfare organizations.

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. If not 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 two classifications are used for the expenses incurred by voluntary health and welfare organizations?

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

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

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. The home has an 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 Home held its annual Holiday fund raiser, pledges of $50,000 were received. The administration expected 5% to be uncollectible. In addition, income of $10,000 was received from the endowment to sponsor families. Prepare the journal entries for these transactions.

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

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. Prepare the necessary journal entry to record the revenue and receivables.

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

Which one of the following is a voluntary health and welfare organization?