Question 1

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.

Accepted Answer

The answer of During 2018, the Garfield Humane Society, a...

Question 2

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.

Accepted Answer

The answer of The Wakefield Home incurred the following liabilities...

Question 3

Record the journal entries that reflect all of this information.

Accepted Answer

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Question 4

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.

Accepted Answer

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Question 5

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

Accepted Answer

The answer of A not-for-profit entity receives a computer as...

Question 6

A local social worker, earning $12 per hour working for the state government, contributed 600 hours of time at no charge to the Sunny 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 Sunny Homeless Shelter record the contributed services?

Accepted Answer

The answer of A local social worker, earning $12 per...

Question 7

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.

Accepted Answer

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Question 8

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

Accepted Answer

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Question 9

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.

Accepted Answer

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Question 10

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.

Accepted Answer

The answer of Assume that the donor retains the right...

Question 11

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.

Accepted Answer

The answer of During 2017, the Garfield Humane Society, a...

Question 12

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.

Accepted Answer

The answer of Assume there are no donor rights to...

Quiz 18: Accounting for Not-For-Profit Entities

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.

Record the journal entries that reflect all of this information.

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

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

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.

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.

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.