Revenue from gifts and grants for a not-for-profit organisation: Revenue from gifts and grants is a big source of income for a non-profit organisation. Gifts and grants received can be restricted for use or can be unrestricted. Unrestricted gifts are those giftsfor which user has not specified any restriction or purpose for which it should be used. Organisation can use unrestricted gifts as per their discretion. But restricted gifts can be used as per the directions given by the person giving gifts. : G revenue for unrestricted gifts and restricted grants

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19.1.5E

To determine

Concept Introduction:

Revenue from gifts and grants for a not-for-profit organisation:

Revenue from gifts and grants is a big source of income for a non-profit organisation. Gifts and grants received can be restricted for use or can be unrestricted. Unrestricted gifts are those giftsfor which user has not specified any restriction or purpose for which it should be used. Organisation can use unrestricted gifts as per their discretion. But restricted gifts can be used as per the directions given by the person giving gifts.

:

G revenue for unrestricted gifts and restricted grants

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $480,000 grant for wetlands research. The grant must be used during the next fiscal year. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,400,000 in tuition and fees revenue. Cash refunds of $313,000 were given. The university provided $12,200 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,978,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required 1. Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. 2. Prepare journal entries to record the…

Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of the grant mentioned in item (a) had been applied to the purpose stipulated. c. The grant provided that amounts not awarded by year-end are to be transferred to the endowment fund. The liability to that fund is recorded. d. An alumnus, who was a former athlete, contributed $15,000 to assist in the search for a basketball coach.

The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired. Watson has one program service (health care) and two supporting services (fundraising and administrative). During the current year, Watson Foundation has the following transactions. 1. Computed interest of…