ACCOUNTING F/GOV.+..(LL)-W/CODE>CUSTOM<
18th Edition
ISBN: 9781264107919
Author: RECK
Publisher: MCG CUSTOM
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Chapter 13, Problem 17.1EP
Jan and Dean decided to form a charitable organization. I Love Rock N Rollers, to provide funding to assist former rock and roll group members who have become homeless. They are planning to hold a “mini-Woodstock” event to raise money, with music by groups from the ’60s and ’70s. The event will offer food and beverages and the sale of memorabilia related to the event. Before they go any further, Jan and Dean need to
- a. Prepare articles of incorporation and by-laws, obtain an EIN from the IRS if the organization will have employees, apply for permission to solicit charitable contributions, and apply for 501(c)(3) status from the IRS.
- b. Prepare articles of incorporation and by-laws and file them with the state, obtain an EIN from the IRS if the organization will have employees, apply for permission to solicit charitable contributions, and apply for 501(a) status from the IRS.
- c. Prepare articles of incorporation and by-laws and file them with the state, obtain an EIN from the IRS, apply for permission to solicit charitable contributions, and apply for 501(c)(3) status from the IRS.
- d. Prepare articles of incorporation and by-laws, obtain an EIN from the IRS, apply for permission to solicit charitable contributions, and apply for 501(a) status from the IRS.
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Karen White helped organize a charity fund to help cover the medical expenses of a friend of hers who was seriously injured in a
bicycle accident. The fund was named Vicky Hill Recovery Fund (VHRF). Karen contributed $1,000 of her own money to the fund. The
$1,000 was paid to WKUX, a local radio station that designed and played an advertising campaign to educate the public as to the need
for help. The campaign resulted in the collection of $20,000 cash. VHRF paid $12,000 to Mercy Hospital to cover Vicky's outstanding
hospital cost. The remaining $8,000 was contributed to the National Cyclist Fund.
Required
Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you
identify.
Entities Mentioned
Vicky Hill Recovery Fund
Karen White
WKUX
Public
Mercy Hospital
National Cyclist Fund
Increase
Decrease
Effect On Cash
for cash contributions, $21,000
for payment of advertising, $1,000
ayment for hospital bills, $12,000
or…
Karen White helped organize a charity fund to help cover the medical expenses of a friend of hers who was seriously injured in a
bicycle accident. The fund was named Vicky Hill Recovery Fund (VHRF). Karen contributed $1,000 of her own money to the fund. The
$1,000 was paid to WKUX, a local radio station that designed and played an advertising campaign to educate the public as to the need
for help. The campaign resulted in the collection of $20,000 cash. VHRF paid $12,000 to Mercy Hospital to cover Vicky's outstanding
hospital cost. The remaining $8,000 was contributed to the National Cyclist Fund.
Required
Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you
identify.
Entities Mentioned
Vicky Hill Recovery Fu
Karen White
Effect On Cash
for cash contributions, $21,000
for payment of advertising, $1,000
payment for hospital bills, $12,000
for donation to National Cyclist Fund, $8,000
by contribution, $1,000
Community Assist for Refugees (CAR) is a not-for-profit organization that assistsrefugees with various services including language and cultural training, transportation,a food bank, and translation services. Some selected transactions for CAR arepresented below.a.CAR received a $20,000 cheque from a local radio station. The letter that came withthe donation says that it can be used by CAR on whatever needs are most urgent.b.CAR received a $25,000 donation from the Literacy Fund for a new homeworkambiance piglet the project serpested o star /in a ew moning,.(C.CAR received a $55,000 endowment contribution from Dr. Koe for a scholarshipd. CAR received a donation of 50 student desks for its homework assistance projectfrom City Office Supplies Ltd. The student desks are valued at $40,000 and areexpected to last 10 years.
e. The city donated a tract of land,valued at $50,000 to CAR which plans to raise funds to constract a new center on the land.
f.Assume that the homework as istance…
Chapter 13 Solutions
ACCOUNTING F/GOV.+..(LL)-W/CODE>CUSTOM<
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Jan and Dean decided to form a charitable...Ch. 13 - Prob. 17.2EPCh. 13 - Prob. 17.3EPCh. 13 - Prob. 17.4EPCh. 13 - Prob. 17.5EPCh. 13 - Prob. 17.6EPCh. 13 - Prob. 17.7EPCh. 13 - Prob. 17.8EPCh. 13 - Prob. 17.9EPCh. 13 - When a tax-exempt organization dissolves, the...Ch. 13 - Prob. 18EPCh. 13 - Use Illustration 13-4 as a guide in completing...Ch. 13 - Prob. 20EPCh. 13 - Prob. 21EPCh. 13 - Prob. 22EP
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