GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 11P
To determine
Identify the correct option out of the given statements.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On December 25, 2017, Mr. Jones gives Charity A 1,000 shares of stock that he bought originally for $9,000. No restrictions were placed on this donation. The governing board does not want to speculate on investments. Thus, it has a policy to sell all donated investments as soon as received. These 1,000 shares are sold on December 26, 2017, for their fair value of $28,000. How does the charity report these events on a statement of cash flows?
As a $28,000 cash inflow from an investing activity.
As a $9,000 cash inflow from an operating activity and a $19,000 cash inflow from an investing activity.
As a $28,000 cash inflow from an operating activity.
As a $9,000 cash inflow from a financing activity and a $19,000 cash inflow from an investing activity.
On December 25, 2017, Mr. Jones gives Charity A 1,000 shares of stock that he bought originally for $9,000. No restrictions were placed on this donation. The governing board does not want to speculate on investments. Thus, it has a policy to sell all donated investments as soon as received. These 1,000 shares are sold on December 26, 2017, for their fair value of $28,000. How does the charity report these events on a statement of cash flows?a. As a $28,000 cash inflow from an investing activity.b. As a $9,000 cash inflow from an operating activity and a $19,000 cash inflow from an investing activity. c. As a $28,000 cash inflow from an operating activity.d. As a $9,000 cash inflow from a financing activity and a $19,000 cash inflow from an investing activity.
On December 25, 2019, Ms. Smith gives Charity Z 1,000 shares of stock that she bought originally for $9,000. No restrictions were placed on this donation. The governing board does not want to speculate on investments. Thus, it has a policy to sell all donated investments as soon as received. These 1,000 shares are sold on December 26, 2019 for their fair value of $28,000. How does Charity Z report these events on a statement of cash flows?
Select one:
a.As a $28,000 cash inflow from an investing activity.
b.As a $28,000 cash inflow from an operating activity.
c.As a $9,000 cash inflow from a financing activity and a $19,000 cash inflow from an investing activity.
d.As a $9,000 cash inflow from an operating activity and a $19,000 cash inflow from an investing activity.
Chapter 18 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 18 - Prob. 1QCh. 18 - Prob. 2QCh. 18 - Prob. 3QCh. 18 - What are temporarily restricted net assets?Ch. 18 - What are permanently restricted net assets?Ch. 18 - Prob. 6QCh. 18 - Prob. 7QCh. 18 - Prob. 8QCh. 18 - Prob. 9QCh. 18 - Prob. 10Q
Ch. 18 - Prob. 11QCh. 18 - Prob. 12QCh. 18 - Prob. 13QCh. 18 - Prob. 14QCh. 18 - Prob. 15QCh. 18 - When should membership dues be considered revenue...Ch. 18 - Prob. 17QCh. 18 - Prob. 18QCh. 18 - Prob. 19QCh. 18 - Prob. 20QCh. 18 - Prob. 21QCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - A donor gives Charity 1 50,000 in cash that it...Ch. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Prob. 10PCh. 18 - Prob. 11PCh. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Prob. 14PCh. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21PCh. 18 - Prob. 22PCh. 18 - Prob. 23PCh. 18 - Prob. 24PCh. 18 - Prob. 25PCh. 18 - Prob. 26PCh. 18 - Prob. 27PCh. 18 - Prob. 28PCh. 18 - Prob. 29PCh. 18 - Prob. 30PCh. 18 - Prob. 31PCh. 18 - Prob. 32PCh. 18 - Prob. 33PCh. 18 - Prob. 34PCh. 18 - Prob. 35PCh. 18 - Prob. 36PCh. 18 - Prob. 37PCh. 18 - Prob. 38PCh. 18 - Prob. 39PCh. 18 - A private not-for-profit entity is working to...Ch. 18 - Prob. 41PCh. 18 - The University of Danville is a private...Ch. 18 - Prob. 43PCh. 18 - Prob. 44PCh. 18 - Prob. 45PCh. 18 - Prob. 46PCh. 18 - Prob. 47PCh. 18 - Prob. 48PCh. 18 - Prob. 49PCh. 18 - At the beginning of Year 1, the entity above...Ch. 18 - Prob. 51PCh. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - Prob. 54PCh. 18 - Prob. 1DYSCh. 18 - Prob. 2DYSCh. 18 - Prob. 3DYSCh. 18 - Prob. 4DYSCh. 18 - Prob. 5DYSCh. 18 - Prob. 6DYS
Knowledge Booster
Similar questions
- The Jones family lost its home in a fire. On December 25, 2017, a philanthropist sent money to the Amer Benevolent Society, a private not-for-profit entity, specifically to purchase furniture for the Jones family. During January 2018, Amer purchased furniture for the Jones family. How should Amer report the receipt of the money in its 2017 financial statements? Choose the correct.a. As an unrestricted contribution.b. As a temporarily restricted contribution.c. As a permanently restricted contribution.d. As a liability.arrow_forwardHelga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000 to a qualified charitable organization on April 3, 2018. a. What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of $26,000 when she made the donation?Helga's deduction is $. b. Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market value of $33,000 when she made the donation, Helga's deduction is $. c. Assuming that she purchased the stock on January 15, 2018, and the stock had a fair market value of $29,000 when she made the donation to the charity, Helga's deduction is $arrow_forwardMarcia, a shareholder in a corporation with stores in five states, donated stock with a basis of 10,000 to a qualified charitable organization in 2018. Although the stock of the corporation was not traded on a public stock exchange, many shares had been sold over the past several years. Based on the average selling price for the stock in 2018, Marcia deducted 95,000 on her 2018 tax return. Marcia received a notice from the IRS that the 95,000 deduction had been reduced to 10,000 because she had not obtained a qualified appraisal or attached a summary of her appraisal to her tax return. Marcia has asked you to advise her on this matter. Write a letter containing your conclusions to Ms. Marcia Meyer, 1311 Santos Court, San Bruno, CA 94066. Partial list of research aids: Reg. 1.170A13(c)(2).arrow_forward
- Mr and Mrs. Swerte made the following donations during the calendar year 2018 (common property unless otherwise stated): Date Donations January 15 To Fe, legitimate daughter, on account of her forthcoming marriage, 10,000 shares which are not traded in the stock exchange. The book value at the time of donation was P52 per share. To Juana, family friend of couple, on account of her birthday, P20,000. February 10 To Pilar, legitimate daughter, on account of her marriage on February 1, 2015, a piece of antique jewelry from the capital property of Mr. Swerte. The pawn value of the jewelry was P45,000. To Ernest, legitimate son, on account of her graduation, a piece of land costing P500,000. The fair market value per BIR at the time of adoption was P1,000,000. Its zonal value was P1,200,000. The piece of land had an unpaid mortgage of P100,000 which was assumed by the donee. To Lilian, Mrs Swerte's sister; on account of her forthcoming marriage, cash P150,000 September 4 To CPAR University,…arrow_forwardJames Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75 percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee. Prepare all necessary journal entries for the trust to record the following transactions: James Albemarle transferred cash of $300,000, stocks worth $200,000, and rental property valued at $150,000 to the trustee of this fund. Immediately invested cash of $260,000 in bonds issued by the U.S. government. Commissions of $3,000 are paid on this transaction. Incurred permanent repairs of $7,000 so that the property can be rented. Payment is made immediately. Received dividends of $4,000. Of this amount, $1,000 had been declared prior to the creation of the trust fund. Paid insurance expense of $2,000 on the rental property. Received rental income…arrow_forwardThe Jones family lost its home in a fire. On December 25, 2017, a philanthropist sent money to the Amer Benevolent Society, a private not-for-profit entity, specifically to purchase furniture for the Jones family. During January 2018, Amer purchased furniture for the Jones family. How should Amer report the receipt of the money in its 2017 financial statements? As an unrestricted contribution. As a temporarily restricted contribution. As a permanently restricted contribution. As a liability.arrow_forward
- James Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75 percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee.Prepare all necessary journal entries for the trust to record the following transactions:a. James Albemarle transferred cash of $300,000, stocks worth $200,000, and rental property valued at $150,000 to the trustee of this fund.b. Immediately invested cash of $260,000 in bonds issued by the U.S. government. Commissions of $3,000 are paid on this transaction.c. Incurred permanent repairs of $7,000 so that the property can be rented. Payment is made immediately.d. Received dividends of $4,000. Of this amount, $1,000 had been declared prior to the creation of the trust fund.e. Paid insurance expense of $2,000 on the rental property.f. Received…arrow_forwardEarly in 2018, a not-forprofit organization received a $4,000,000 gift from a wealthy benefactor. This benefactor specified that the gift be invested in perpetuity with income restricted to provide speaker fees for a lecture series named for the benefactor. The not-for-profit is permitted to choose suitable investments and is responsible for all other costs associated with initiating and administering this series.Neither the donor’s stipulation nor the law addresses gains and losses on this permanent endowment. In 2018, the investments purchased with the gift earned $100,000 in dividend income. The fair value of the investments increased by $300,000. The not-for-profit’s accounting policy is to record increases in net assets, for which a donor-imposed restriction is met in the same accounting period as gains and investment income are recognized, as increases in unrestricted net assets.Five presentations in the lecture series were held in 2018. The speaker fees for the five…arrow_forwardJames Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75 percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee. a. James Albemarle transferred cash of $320,000, stocks worth $220,000, and rental property valued at $160,000 to the trustee of this fund. b. Immediately invested cash of $270,000 in bonds issued by the U.S. government. Commissions of $4,000 are paid on this transaction. c. Incurred permanent repairs of $7,200 so that the property can be rented. Payment is made immediately. d. Received dividends of $4,400. Of this amount, $1,200 had been declared prior to the creation of the trust fund. e. Paid insurance expense of $2,200 on the rental property. f. Received rental income of $8,200. g. Paid $4,400 from the trust for trustee services rendered.…arrow_forward
- A donor gives investments to Juarez Foundation for the Treatment of TMJ, a nonprofit organization, on January 15, 2021. The fair value of the investments was $200,000 at the date of the gift. The donor restricts the use of the gift for research on TMJ surgical treatments. By March 31, 2021, the investment value has grown to $226,000. On May 3, 2021 the Foundation sells the investments for $215,000. By June 30, 2021, the Foundation had spent $175,000 on research related to TMJ surgical treatments. Record the following journal entries: 1. Donation on January 15, 2021. 2. Unrealized gain/loss on March 31, 2021. 3. Sale of investments on May 3, 2021. 4. Expenses for research on TMJ surgical treatments through June 30, 2021. 5. Satisfaction of donor restrictions on June 30, 2021.arrow_forwardA donor gave $75,000 to a nongovernmental, not-for-profit charity with instructions that s be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit w A) A. Record the $75,000 cash and credit revenue with donor restrictions. B) B. Record the $75,000 cash and credit a liability. C) C. Not record the transaction, because the money is going directly to the intended D) D. Do either of the choice A or B, depending upon the policy of the not-for-profit.arrow_forwardGabby’s records contain the following information for 2020: 1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. She acquired the stock five months previously at a cost of $2,400. 2. Paid $700 to a church so her daughter can attend summer camp. 3. Donated a stock having a fair market value of $ 2,000 to a qualified organization. She acquired the stock 10 years ago for $ 8,000. 4. Donated $ 50 to the Democratic National Political Party. 5. Drove 600 miles in her personal auto directly related to services she performed for her church. 6. Gabby spent 100 hours of volunteer time on # 4 above. She makes $ 25 per hour. How much is Gabby’s charitable contribution deduction? a. $ 11,652b. $ 10,534c. $ 10,484d. $ 4,484e. $ 4,450arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT