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 bill from staples

10.Money owed to the nonprofit but not yet paid

Expert Solution

Solution:

1	The land on which the nonprofit is located and which it owns	It is an Asset, because organisation owns it and has right over it.
2	Salaries owed to employees	Salary payable to employees is a liability.
3	A $100,000 grant to be paid next year for a specific purpose by a foundation	It is a Temporary restricted net asset for the receiving organisation in receipt year and a liability for the donor organisation in the current year.
4	Government bonds owned by the nonprofit	Investment in Government bonds is an asset.
5	Prepaid insurance expenses	Expenses for next year paid in advance is an asset in current year.
6	A fifteen-year mortgage on the organization's building	Mortage is a liability
7	Salaries paid to employees	Salary paid to employees is a expense.
8	Supplies in the closet	It is considered as inventory and hence it is an asset.
9	A bill from staples	It is a liabiltiy to meet.
10	Money owed to the nonprofit but not yet paid	It is owed to nonprofit hence asset for non profit entity.

ekkarill92 answered 2 years ago

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