Question 1

A not-for-profit entity receives a computer as a donation (valued at $3,000). Prepare the journal entry for the transaction.

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Question 2

The Butler Center is a voluntary health and welfare entity. During 2020, unrestricted pledges of $880,000 were received by the Butler Center, sixty-five percent of which were fulfilled in 2020. 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 2021 (for use in 2021).Required:1) Show with appropriate amounts how the Butler Center would present the pledges on its Statement of Financial Position on the day the pledges are recorded in 2020.2) Show with appropriate amounts the effect on net assets the Butler Center would report for contributions for 2020.

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Question 3

A local social worker, earning $14 per hour working for the state government, contributed 550 hours of time at no charge to the Sunrise Homeless Shelter, a voluntary health and welfare entity. If not for these donated services, an additional staff person would have been hired by the entity.Required:How should the Sunrise Homeless Shelter record the contributed services?

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Question 4

Rainbow 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 2020, pledges of $75,000 were received. The administration expected 6% of the pledges to be uncollectible.In addition, income of $12,500 was received from the permanent endowment to sponsor children to be placed with foster families.Prepare the journal entries for these transactions.

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Question 5

What criteria did the FASB establish for not-for-profit entities to use in determining if a contribution is conditional?

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Question 6

Record the journal entries that reflect all of this information.

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Question 7

A local business donated medical supplies to Madison Home with a value of $45,000. Prepare the journal entry for the receipt of these supplies.

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Question 8

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.

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Question 9

During 2021, the Tigger Humane Society, a voluntary health and welfare entity, received cash donations of $765,000 and membership dues of $54,000. A member of the Humane Society donated services valued at $5,000 that would otherwise have been performed by a paid staff member. A pet food manufacturer donated dog food valued at $13,200.The Humane Society received a gift of $125,000, to be used for building a new animal shelter. Also during 2021, investments held by the Humane Society earned interest of $1,200.Required:Prepare a schedule showing the amount that the Tigger Humane Society should have recorded for contributions from public support for 2021, according to ASU 2016-14.

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Question 10

Manna House, a local not-for-profit, provides food assistance to those in need. Manna House recently received two donations:a) Cash donation of $25,000 that must be used to purchase a vehicle to be used to deliver food. If the money is not used to purchase a vehicle for that purpose, the money must be returned to the donor.b) Donated furniture that may be used for the Manna House office, sold, or put to any other use Manna House sees fit. The fair value of the furniture is $10,000.Required:Prepare the journal entries for the receipt of these donations.

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Question 11

A not-for-profit entity provides the following information for the year 2020:  Required:Prepare the journal entries for these transactions for the year 2020.

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Question 12

What is the five-step progression that a health care entity must follow in recording revenues?

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Question 13

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.

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Question 14

Match between columns
                        Premises:  Direct costs.
 Indirect costs.
 Stock issue costs.
 Contingent consideration.
 Bargain purchase.

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Quiz 18: Accounting and Reporting for Private Not-For-Profit Organizations