Question

In: Accounting

(Identifying the appropriate net asset classification)For each of the following transactions, identify the net asset classification...

(Identifying the appropriate net asset classification)For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit’s financial statements for the year ended De-cember 31, 2019. Both net asset classifications may be affected in some transactions. .E13-27. (Recording journal entries for nonprofits)Prepare journal entries to record the transactions in Exercise E13-26

1. Donor A gave a nonprofit a $50,000 cash gift in June 2019, stipulating that the nonprofit could not use the gift until 2020.

2. Donor B gave a nonprofit a $25,000 cash gift in July 2019, telling the nonprofit the gift could be used only for research on a specific project.

3. In response to a special fundraising campaign, whereby contributions could be used only for con-struction of a new warehouse, a large number of individuals promised to make cash contributions totaling $2 million in 2019. The nonprofit believes it will actually collect 80 percent of the promised cash.

4. Donor C gave a nonprofit several investments having a fair value of $3 million in March 2019. Donor C stipulated that the nonprofit must hold the gift in perpetuity, but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $100,000.

5. Using the resources raised in Transaction 3, a nonprofit paid an architect $50,000 in 2019 to make preliminary designs for a new building

Solutions

Expert Solution


Related Solutions

Place an “X” in the appropriate classification for each balance sheet item listed below. Short-Term Asset...
Place an “X” in the appropriate classification for each balance sheet item listed below. Short-Term Asset Long-Term Asset Short-Term Liability Long-Term Liability Payroll taxes due Accounts receivable Land Mortgage payable (non-current) Buildings Note payable (due in 24 months) Inventory Accounts payable Cash on hand Assignment Exercise 3–1: Assets and Liabilities Review the chapter text about assets and liabilities and Exhibits 3-1 and 3-2. Required 1. Find three separate references to assets and to liabilities in health care organizations in published...
Match each of the following activities with the appropriate quality cost classification (a–d). Group of answer...
Match each of the following activities with the appropriate quality cost classification (a–d). Group of answer choices Disposing of scrap       [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost       Recalling defective products       [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost   ...
Determine the Appropriate Analysis For each of the following scenarios, identify the appropriate analysis. 2. A...
Determine the Appropriate Analysis For each of the following scenarios, identify the appropriate analysis. 2. A guidance counselor at a high school wants to be best informed about the universities and colleges that students prefer most frequently. He glances at the institutions attended by last year’s graduates and notes that the three closet colleges appear to have about equal appeal. To test this assumption, he begins asking students who are planning on postsecondary schooling where they will apply. His data...
Identify each of the following as an asset, a liability, a revenue, an expense, or a...
Identify each of the following as an asset, a liability, a revenue, an expense, or a net asset (unrestricted, temporarily restricted, or permanently restricted): 1.The land on which the nonprofit is located and which it owns 2.Salaries owed to employees 3.A $100,000 grant to be paid next year for a specific purpose by a foundation 4.Government bonds owned by the nonprofit 5.Prepaid insurance expenses 6.A fifteen-year mortgage on the organization's building 7.Salaries paid to employees 8.Supplies in the closet 9.A...
Practice Exercise 24: Determining the Appropriate Analysis For each of the following scenarios, identify the appropriate...
Practice Exercise 24: Determining the Appropriate Analysis For each of the following scenarios, identify the appropriate analysis. 1. The question is whether verbal reinforcement affects response rates. Subjects in Group 1 were verbally reinforced every time they respond to the instructor’s questions. Subjects in Group 2 were not. After 2 weeks, the two groups were compared by gauging the number of students who raised their hand when questions were asked. The following data were collected. Group 1: 13, 15, 12,...
a. Identify these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE).(Select "NA" if there is no effect on the "Classification".)
At the beginning of Year 2, the Redd Company had the following balances in its accounts:Cash$7,900Inventory1,900Common stock7,400Retained earnings2,400a. Identify these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE).(Select "NA" if there is no effect on the "Classification".)During Year 2, the company experienced the following events:Purchased inventory that cost $5,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $490 were paid in cash.Returned...
A company entered into the following transactions. Match each transaction with the appropriate journal.
 A company entered into the following transactions. Match each transaction with the appropriate journal. S- Sales Journal P- Purchase Journal R- Cash Receipts Journal D- Cash Disbursements Journal G- General Journal 1. Returned defective inventory that we had purchased on account that had cost $4,800. 2. A customer returned a $2,000 item he had purchased on account. 3. Paid $44,000 in wages and salaries in regular payroll. 4. Purchased a display rack on account for $2,600. 5. The owner invested $15,000 cash into the business. 6. Sold $6,200 of merchandise on...
(4). Record the following selected transactions for April in a two-column journal, identifying each entry by...
(4). Record the following selected transactions for April in a two-column journal, identifying each entry by letter. Omit explanation. April             (a) On April 1st, received $18,000 from Katie Long, owner. (b) On April 2nd, purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder. (c) On April 5th, paid $2,300 for rent for April. (d) On April 8th, purchased $1,500 of supplies on account. (e) On April 10th, recorded $9,800 of fees earned on...
Required Place the appropriate letter identifying each quality on the line in front of the statement...
Required Place the appropriate letter identifying each quality on the line in front of the statement or phrase describing the quality. P1-2    Chapter 2: Certain underlying considerations have had an important impact on the development of generally accepted accounting principles. Following is a list of these underlying considerations, as well as a list of statements describing them. a. Going concern or continuity b. Monetary unit c. Conservatism d. Matching i. Industry practices j. Verifiability k. Consistency l. Realization e....
For each of the following events or transactions, identify the fund that will be affected. 1....
For each of the following events or transactions, identify the fund that will be affected. 1. A city government provides electricity services to residents for a fee. 2. A printing shop was established to handle the printing needs of a county government. 3. A philanthropist donates $1 million for zoo maintenance, only earnings can be used. 4. A city government collects sales taxes on behalf of the state and for some of its counties and municipalties. (Only identify one of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT