Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 18, Problem 14Q
To determine
Define the condition when the pledge should be recognized as receivables and contributed support in a private not-for-profit entity.
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The following selected transactions occurred for a nongovernmental, not-for-profit organization.
1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250.
2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year.
For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased.
A cash gift of $200 was received restricted for the purchase of equipment.
Equipment of $80 was purchased from the gift restricted for this purpose.
Depreciation expense for the year on the equipment purchased is $10.
Required: Prepare the journal entries for the above…
An entity's retirement benefit plan provides for an annual contribution of P2,000,000 to a fund held and managed by a third party. The fund is legally separate from the entity and is to be used solely for the retirement pay of employees. The amount to be received by a retiring employee is dependent on the amount of contributions and the investment income earned onthose contributions. The third party trustee assumes the obligation of disbursing the funds to retiring employees.The entity made the following contributions to the fund:20x1 P 020x2 4,700,00020x3 1,200,000Requirements: Provide the entries to record the contributions.
a not for profit entity provides the following information for the year 2023.
Unrestricted pledges received this year, due within 12 months $ 150,000
Contributions to the endowment received                $25,000
percentage of unrestricted pledge expected to be received.  92%
collections of pledge before the end of the year            $ 90,000
pledge written off at year end                          $ 4,000
Required:
prepare the journal entries for these transactions for the year 2023?
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
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- The Pooch Corporation is a regular corporation that contributes $15,000 cash to qualified charitable organizationsduring the current year. The corporation has net taxable income of $160,000 before deducting the contributions.a. What is the amount of Pooch Corporation's allowable deduction for charitable contributions forthe current year?b. What may the corporation do with any excess amount of contributions?arrow_forwardMake the appropriate calculations in each of the following independent situations presented below. In its first year of operation, the MFG Corporation, a regular corporation contributes $35,000 cash to a qualified charitable organization during the current tax year. The corporation has net operating income of $145,000 before deducting the contributions, and dividends received from domestic corporations, of $25,000. What is the amount of MFG’s allowable deduction for charitable contribution? Gloria, in forming a new corporation transfers land to the corporation in exchange for 100% of the stock of the corporation. Gloria’s basis in land is $275,000 and the corporation assumes a liability on the property in the amount of $300,000. The stock received by Gloria has a fair market value of $550,000. Give the amount of gain or loss that must be recognized by Gloria on this transaction. Kingdom Corporation is a manufacturing corporation that has accumulated earnings of $975,000. It can…arrow_forwardA private college has received pledges that are due within one year pledges that are long-term. How will the college report the pledges in its financial statements?arrow_forward
- Please prepare dummy journal entries. Assume instead that Good Charity prepares its annual financial statements using the restricted fund method of accounting for contributions and has chosen to have a general, capital and endowment fund to account for its activities.  Jan 1: a donor contributes land for a future operations site. Land has a fair value of $32,000. Feb 1: A donor contributes $60,000 on the condition that the principal amount be invested in marketable securities and that only the income earned from the investment be spent on operations. Income of $2,000 was earned and received during 2020 on these investments. General donations of $85,000 were received during 2020. d)    Feb 1: the government gave $80,000 to Good Charity to purchase equipment and furniture with a useful life of 10 years. This was all used to purchase $100,000 of equipment and furniture on July 1, 2020 and the operation opened in a rented facility on July 2, 2020. e)    Costs of $72,000 were incurred…arrow_forwardThe following gifts are received in 2019 by a not-for-profit entity: $3,000 specified by the donor to be used to pay salaries. $12,000 specified by the donor for new conference room furniture. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did not specify any time restriction on holding the conference room furniture. What amount should be reclassified on the Statement of Activities for 2020 from the With Donor Restrictions column to the Without Donor Restrictions column?  Multiple Choice  $3,000.  $6,000.  $9,000.  $12,000.  $15,000.arrow_forwardAn entity's retirement benefit plan provides for an annual contribution of P2,000,000 to a fundheld and managed by a third party. The fund is legally separate from the entity and is to beused solely for the retirement pay of employees. The amount to be received by a retiringemployee is dependent on the amount of contributions and the investment income earned onthose contributions. The third party trustee assumes the obligation of disbursing the funds toretiring employees.arrow_forward
- The following gifts are received in 2019 by a not-for-profit entity: $3,000 specified by the donor to be used to pay salaries. $12,000 specified by the donor for new conference room furniture. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did not specify any time restriction on holding the conference room furniture. With respect to the donations received in 2019, what amount should be reported in the Statement of Activities as net increase to Net Assets with Donor Restrictions for the year 2019?  Multiple Choice  $ 3,000  $ 9,000  $15,000  $18,000  $21,000arrow_forwardAnswer both i and ii. please answer asap Assume instead that Good Charity prepares its annual financial statements using the restricted fund method of accounting for contributions and has chosen to have a general, capital and endowment fund to account for its activities.  Jan 1: a donor contributes land for a future operations site. Land has a fair value of $32,000. Feb 1: A donor contributes $60,000 on the condition that the principal amount be invested in marketable securities and that only the income earned from the investment be spent on operations. Income of $2,000 was earned and received during 2020 on these investments. General donations of $85,000 were received during 2020. d)    Feb 1: the government gave $80,000 to Good Charity to purchase equipment and furniture with a useful life of 10 years. This was all used to purchase $100,000 of equipment and furniture on July 1, 2020 and the operation opened in a rented facility on July 2, 2020. e)    Costs of $72,000 were incurred…arrow_forwardThe following are selected transactions for Lakeview Cooperative which uses the restricted fund method. Lakeview has an operating fund, a capital fund and an endowment fund: Pledges amounting to $550,000 were received, of which $75,000 applies to the operations of the following year. It is estimated that 3% of the pledges will be uncollectible. A former resident who became a successful businessperson, donated $80,000 to be held in an endowment. Interest on the endowment is unrestricted. The association purchased furniture and fixtures at a cost of $14,000. These purchases were made using operating funds. Pledges of $350,000 were collected, while pledges amounting to $5,500 were written off as uncollectible. A local newspaper agreed to offer Lakeview a full-page ad. This had an estimated value of $1,500. Interest and dividends received amounted to $8,000 on endowment fund investments. Amortization for the year amounted to $20,000. Required: Prepare journal entries to record the above…arrow_forward
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