Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 18, Problem 18.3.4P
To determine
Balance Sheet:
The sheet which shows the financial position of the company by showing the value of the assets and liabilities during the particular period of time is known as the balance sheet.
To identify:
The amount that should be reported its investment in marketable equity securities in its year-end balance sheet by the friends of the forest report.
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Prepare journal entries to record the following transactions and events, based on the assumption that the nonprofit, with a June 30 fiscal year-end, uses a single account to record all unrealized and realized investment gains and losses. Then, prepare journal entries for Events 2 and 3, based on the assumption that the nonprofit separates unrealized from realized investment gains and losses.
1. On July 15, a nonprofit received a donation of Apple stock that had a fair value of $75,000 at the time of the donation. The donor told the nonprofit that the stock could be sold and used only to finance a particular research project.
2. On December 31, when the nonprofit closed its books, the stock had a fair value of $76,500.
3. On February 15, the nonprofit sold the stock for $76,000.
4. On March 15, the nonprofit spent the entire $76,000 on the research project for which the donor made the gift.
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…
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…
Chapter 18 Solutions
Advanced Accounting
Ch. 18 - Prob. 1UTICh. 18 - Prob. 2UTICh. 18 - Prob. 3UTICh. 18 - Prob. 5UTICh. 18 - Prob. 4.2ECh. 18 - Prob. 4.3ECh. 18 - Prob. 4.4ECh. 18 - Prob. 4.5ECh. 18 - Record the following events of Mental Health...Ch. 18 - Prob. 8E
Ch. 18 - Prob. 18.1.1PCh. 18 - Prob. 18.1.2PCh. 18 - Prob. 18.1.3PCh. 18 - Prob. 18.1.4PCh. 18 - Prob. 18.1.5PCh. 18 - Prob. 18.1.6PCh. 18 - Prob. 18.3.3PCh. 18 - Prob. 18.3.4PCh. 18 - Prob. 18.3.5PCh. 18 - Prob. 18.7.1PCh. 18 - Thirty years ago, a group of civic-minded...Ch. 18 - Prob. 18.8.1PCh. 18 - Prob. 18.8.2PCh. 18 - Prob. 18.9.1PCh. 18 - Prob. 18.9.2P
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