Barrett Historical Society, a nonprofit organization, charges a $100 annual membership. Of this amount, $25 is designed to cover quarterly newsletters, and the remainder is considered to be a contribution. What standard(s) should Barret consider in recording membership revenue for these two components? OASU 2018-08 (nonexchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. Topic 606 (exchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. ASU 2018-08 (nonexchange transactions) would be used to report $25 for newsletter and Topic 606 (exchange transactions) would be used to report $75 contribution. Topic 606 (exchange transactions) would be used to report $25 for newsletter and ASU 2018-08 (nonexchange transactions) would be used to report $75 contribution.

Barrett Historical Society, a nonprofit organization, charges a $100 annual membership. Of this amount, $25 is designed to cover quarterly newsletters, and the remainder is considered to be a contribution. What standard(s) should Barret consider in recording membership revenue for these two components? OASU 2018-08 (nonexchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. Topic 606 (exchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. ASU 2018-08 (nonexchange transactions) would be used to report $25 for newsletter and Topic 606 (exchange transactions) would be used to report $75 contribution. Topic 606 (exchange transactions) would be used to report $25 for newsletter and ASU 2018-08 (nonexchange transactions) would be used to report $75 contribution.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 30CE

See similar textbooks

Similar questions

The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency:a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000.b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000.c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of donation of $75,000. The donation was restricted to expenditure for modernization of equipment. The donation was accepted.d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset.e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements.f. Pledges of $60,000…
For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its studentsP1,700,000 (net of refunds), covering tuition and fees for educational and general purposes. However, anamount of P1,500,000 was only expected to be realized. It is because P150,000 were granted to students,and P50,000 tuition remissions were allowed to faculty member’s children attending the university. Whatamount should AU include in its unrestricted funds as revenues from tuition fees? 2. The League, a non-profit organization, received the following pledges:Unrestricted P200,000Restricted for Capital Additions 150,000All pledges are legally enforceable. However, the League’s experience indicates that 10% of all pledgesprove to be uncollectible. What amount should the League report as pledges receivable net of any requiredallowance account?
Golf Corp (GC), a calendar-year, accrual method corporation, held its directors’ meeting on December 15 of year 1. During the meeting, the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a quality charity. If GC actually pays $50,000 of this contribution on Jan 15 of yar 2 and remaining $25,000 on or before April 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it favorable or unfavorable? Is it permanent or temporary? Assume the same facts as in part (a) what book tac difference will GC report in year 2 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it favorable or unfavorable? If GC actually pays $50,000 of this contribution on Jan 15 of yar 2 and remaining $25,000 on May 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it…
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…
Leaf Private College is sponsored by a religious group. Volunteers from this religious group regularly contribute their skilled services to Leaf and are paid nominal amounts to cover their commuting costs. If Leaf did not receive these volunteer services, it would have to purchase similar services. During 2019, the total amount paid to these volunteers was $10,000. The gross value of services performed by them, as determined by reference to layequivalent salaries, amounted to $400,000. What amount should Leaf record as expenses in 2019 for these volunteers’ services?a. $410,000b. $400,000c. $10,000d. $0
The M Club discloses the following note to its Income and Expenditure Account: 'Subscriptions in arrears are accounted for when received; subscriptions in advance are accounted for on a matching basis.' At 31 March 20X1, there were subscriptions owing of $1,000 and subscriptions in advance of $500. During the year ended 31 March 20X2, subscriptions of $10,000 were received, including subscriptions relating to the previous year of $800 and subscriptions in advance of $600. What amount should be included for subscriptions in the year ended 31 March 20X2? A $8,100 B $8,900 C $9,100 D $9,900
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply…
Dimples Company sells subscriptions to a specialized directory, which is issued semi-annually and distributed to subscribers on April 15 and October 15. Subscriptions acquired after the March 31 and September 30 deadlines are kept for the following issue. Cash from subscribers is received evenly throughout the year and is credited to deferred subscription revenues. The following data are for 2021: Unearned Subscriptions, 12/31/2020 - P3,000,000 Cash receipts from subscribers - P14,400,000 How much should Dimples report Unearned Subscription on its December 31, 2021 statement of financial position?
Permission to Dance Company provides retirement benefits to employees through defined contribution plan. The plan provides Permission to Dance shall contribute annually 8% of gross payroll to a funding agency. In addition, the entity is also required to contribute 5% of annual sales exceeding P10,000,000. During 2021, gross payroll of the company was P6,000,000 and the total sales amounted to P35,000,000. Which of the following is part of the entries that would be recorded by Permission to Dance assuming that the company contributed P1,700,000?
The New City College reported deferred revenues of $497,000 as of July 1, 2019, the first day of its fiscal year. Record the following transactions related to student tuition and fees and related scholarship allowances for New City College for the year ended June 30, 2020. The deferred revenues related to unearned revenues for the summer session, which ended in August. During the fiscal year ended June 30, 2020, student tuition and fees were assessed in the amount of $12,120,000. Of that amount $9,662,000 was collected in cash. Also of that amount, $554,000 pertained to that portion of the summer session that took place after June 30, 2020. Student scholarships, for which no services were required, amounted to $823,000. These scholarships were applied to student tuition bills at the beginning of each semester. Student scholarships and fellowships for which services were required (graduate research assistantships) amounted to $745,000. These were applied to student tuition bills at…
In November and December 2021, Print Company, a newly organized magazine publisher, received P72,000 for 1,000, three-year subscriptions at P24 per year, starting with the December 2021 issue. Print elected to include the entire P72,000 in its 2021 income tax return. 1. What amount should Print report in its 2021 income statement for subscriptions revenue?
On December 31, 2018, an entity paid $300,000 contribution to a defined contribution plan. Of this amount, P250,000 is in part exchange for services performed by the employees in December 2017, and the balance of P50,000 is in respect of services to be performed in 2018. What is the journal entry of the defined contribution plan made on December 2017?