Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 12P
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
Charity A and Charity B are affiliated entities. An accountant for Charity B is paid $10,000 per month, which is equal to the fair value of the services rendered. Charity A loses its accountant and the accountant from Charity B is sent to work with Charity A for two months. Charity A pays nothing for this service. What entry should Charity A record for this work?
No entry is made.
An asset is debited for $20,000 and contributed support is credited for the same amount.
An expense is debited for $20,000 and contributed support is credited for the same amount.
An asset is debited for $20,000 and an inter-equity account is credited for the same amount.
Charity A and Charity B are affiliated entities. An accountant for Charity B is paid $10,000 per month, which is equal to the fair value of the services rendered. Charity A loses its accountant and the accountant from Charity B is sent to work with Charity A for two months. Charity A pays nothing for this service. What entry should Charity A record for this work? Choose the correct.a. No entry is made.b. An asset is debited for $20,000 and contributed support is credited for the same amount.c. An expense is debited for $20,000 and contributed support is credited for the same amount.d. An asset is debited for $20,000 and an inter-equity account is credited for the same amount.
George H. Ruth takes a leave of absence from his job to work full time for a voluntary health and welfare entity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. How should this donated service be recorded? Choose the correct.a. As contributed support of $44,000 and an expense of $44,000.b. As earned revenue of $44,000.c. As an expense of $44,000.d. No entries should be made.
Chapter 18 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
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
- Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She replaces without charge an administrator who would have otherwise been paid $31,000. Which of the following statements is true? The charity should recognize a restricted gain of $31,000. The charity should recognize a contribution of $31,000 as an increase in unrestricted net assets as well as salary expense of $31,000. The charity should recognize a reduction in expenses of $31,000. The charity should make no entry.arrow_forwardGeorge H. Ruth takes a leave of absence from his job to work full time for a voluntary health and welfare entity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. How should this donated service be recorded? As contributed support of $44,000 and an expense of $44,000. As earned revenue of $44,000. As an expense of $44,000. No entries should be made.arrow_forwardAfter a wedding, ten people were hospitalized possibly as a result of food poisoning from products sold by Bane Inc. Legal proceedings are started seeking damages amounting to ₱500,000 for damages, ₱1,000,000 for the hospitalization expenses and ₱400,000 for the lost income of the patients. Bane Inc.’s lawyers advise that owing to the developments in the case, Bane Inc. will most likely be found liable and lose the case. How will this event be recorded in the financial statements? a. Record a journal entry and make a note disclosure. b. Make a note disclosure only. c. Record a journal entry without any note disclosure. d. Neither journal entry nor note disclosure is needed.arrow_forward
- Ashley received a civil judgement against Sales Associate Betsy. The judge awarded Ashley $10,000 in compensatory damages and $8,000 in punitive damages. Court costs amounted to $3,000. Because Betsy had insufficient assets to satisfy the judgment, Ashley made a claim to the Recovery Fund, which was accepted. What is the maximum amount that the Recovery Fund reimburse Ashley?arrow_forwardMr. Fara, a representative of a domestic firm, disclosed the following information for 2019:The total revenue from the business is P 800,000.The maximum amount of business costs that can be deducted is P 600,000. (excluding contributions)Contributions to charity: P50,000 to the government for key activitiesP 60,000 to the government for public use (non-priority).15,000 pesos to the church What is the net income that is taxable?arrow_forwardThe Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. The Foundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year: Account: Debits Credits Accounts payable $23,600 Accounts receivable (net) $46,300 Accrued interest receivable 16,700 Accumulated depreciation 3,260,500 Cash 110,000 Contributed services 26,000 Contributions—no restrictions 2,410,000 Contributions—purpose restrictions 796,000 Contributions—endowment 2,371,700 Current pledges receivable 75,500 Education program expenses 1,536,100 Fund-raising expenses 116,500 Investment revenue—purpose restrictions 86,500 Training seminars expenses 4,546,100 Land, buildings, and equipment 5,610,700 Long-term investments 2,743,300 Management and general expenses 396,600 Net assets without donor restrictions 448,000 Net assets with donor restrictions…arrow_forward
- Nifty Cleaners Inc., a CCPC that uses a December 31 taxation year, began carrying on the business of providing cleaning services to residential properties. All of the shares were owned by Samuel Spade and, in addition, he was actively involved in managing the business. Samuel Spade, whose previous occupation was as a lawyer at a major Toronto law firm, showed little aptitude for running a business. In 2019, the business had a loss of $123,000 and a further business loss of $87,000 in 2020. When the business began, Nifty Cleaners Inc. had purchased land on which the intention was to expand the business with a second location once the first location became successful. As success did not appear to be on the horizon, Nifty Cleaners Inc. sold the land in 2020 realizing a capital loss of $192,000 which became a 2020 net capital loss of $96,000. In early 2021, Samuel Spade decided to sell the company. Consolidated Enterprises, a large public company agreed to buy all of his shares, and, on…arrow_forwardFor an accrual basis taxpayer, the all events test is not met until economic performance occurs. Economic performance occurs: (a.) When a corporation receives its completed tax return from its accountant (b.) When the employees of self-insured corporation receive medical treatment (c.) When a corporation purchases a $5 million annuity in settlement of $20 million award to a plaintiff/customer in a production liability lawsuit (d.) On March 1, when a corporation uses a leased copy machine to make 12,000 copies for the month of March and it must pay $.10 per copy for copies mad in excess 10,000 plus a flat fee of $500/month.arrow_forwardClassify each of the following cases as "Included in" or "Excluded from" gross income. Included in/Excluded from Gross Income a. Eloise received $150,000 in the settlement of a sex discrimination case against her former employer. b. Nell received $10,000 for damages to her personal reputation. Nell also received $40,000 in punitive damages. c. Orange Corporation, an accrual-basis taxpayer, received $50,000 from a lawsuit it filed against its auditor, who overcharged for services rendered in a previous year. d. Beth received $10,000 in compensatory damages in a lawsuit she filed against a tanning parlor for severe burns she received from using the parlor's tanning equipment. Beth also received $30,000 in punitive damages in the lawsuit against the tanning parlor. e. Joanne received compensatory damages of $75,000 from a cosmetic surgeon who botched her nose job. Joanne also received $300,000 in punitive damages from the cosmetic surgeon who…arrow_forward
- Peter Marwick, an accountant and accrual basis taxpayer, performed accounting services in Year One for Ellie Vader. Peter gave Ellie a bill for $30,000 in Year One. Ellie paid Peter $5,000 in Year One, but Ellie disputes that she owes the other $25,000 because she thinks his work is shoddy. Ellie agreed to put $25,000 in escrow until she and Peter could resolve their legal dispute over Peter's fees. In Year Three after litigation, the dispute is resolved in Peter's favor and he gets the money out of escrow. How much income does Peter have and when? Question 9 options: Peter has $30,000 income in Year 1 because he is on the accrual method. Peter has no income in Year 1 because there is a contested liability. Ellie has $25,000 in cancellation of indebtedness income in Year 1. Peter has $5,000 income in Year 1 and $25,000 in Year 3 under the Claim of Right Doctrine.arrow_forwardLoretta Inc. is suing one of its customers for one million dollars. The likelihood of winning the case is likely according to their lawyers and the amount is determinable. What is the correct accounting treatment? a. A brief description of the lawsuit is disclosed in the notes b. Record an asset for $1,000,000 c. Decrease Retained earnings for $1,000,000 d. Record a liability of $1,000,000arrow_forwardPalmon is indebted to Pai Chan. Due to his inability to pay the debt, Palmon was asked to clean the piggery of Pai Chan for three months. Thereafter, Pai Chan gave Palmon P5,000 and condoned the debt amounting to P10,000. How much income should be declared by Palmon?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
