ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 19.8.2E
To determine
Introduction: Non- refundable initiation fees refers to the fees charged by the organizations at the time of entrance of a new member in the organization. This fees will under no circumstances be refunded to the members and hence the name non- refundable. This is regarded as the revenue for the organization.
To choose: The amount of initiation fees to be recorded as the revenue for the year 20X1.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Barrett Historical Society, a nonprofit organization, charges a $100 annual
membership. Of this amount, $25 is designed to cover quarterly newsletters, and the
remainder is considered to be a contribution. What standard(s) should Barret
consider in recording membership revenue for these two components?
ASU 2018-08 (nonexchange transactions) would be used to report both
components - $25 for newsletter and $75 contribution.
Topic 606 (exchange transactions) would be used to report both components -
$25 for newsletter and $75 contribution.
ASU 2018-08 (nonexchange transactions) would be used to report $25 for
newsletter and Topic 606 (exchange transactions) would be used to report $75
contribution.
Topic 606 (exchange transactions) would be used to report $25 for newsletter
and ASU 2018-08 (nonexchange transactions) would be used to report $75
contribution.
(AUTHORIZATION MATRIX) The following are the authorized signatories for Serrano Company: Mr. A. Serrano Mrs. B. Serrano Mr. C. Serrano Ms. D. SerranoAuthorization matrix revealed the following:
Amount of Disbursement
Who Will Sign?
P10,000 and below
ANY one (1) of the four (4) signatories
P20,000 and below
Mr. C. Serrano AND Ms. D. Serrano, jointly
Mr. A. Serrano, singly
Mrs. B. Serrano, singly
P50,000 and below
(PRIMARY)Mr. A. Serrano AND Mrs. B. Serrano, jointly
(SECONDARY)1st signatory: either Mr. A. OR Mrs. B. Serrano;2nd signatory: either Mr. C OR Ms. D. Serrano
NOTE: Secondary is only used when one of the primary is not available.
On November 6, the Finance Department prepared the following checks, vouchers and supporting documents for approval:
Check number
Payee
Amount
Complete Documents
00032
Juanito Dela Costa
P 7,500.00
a
00033
Crisanta Ramirez
9,473.23
a
00034
Ramona Aquino
5,267.85
a
00035
Techie Supplies Inc.
23,460.00
a…
1. A cooperative transacting business only with its members is on its third-year operation. It reserves 40% of its operating income in compliance with the new CDA regulation. During the year, it reported a total operating income of P3,200,000 inclusive of P2,00,000 income from related activities. Compute the deductible amount of transfers to reserve against gross income.
2. In 2019, Mr. A, a practicing lawyer, adopted a public elementary school and contributed P500,000 for the acquisition of computer equipment and software. Mr. A had an operating income of P950,000 before this contribution expense. Assuming the "Adopt-a-School Program" is an investment priority program of the government in 2019,Compute Mr. A's additional contribution expense
3. ABC Corp employs three senior citizens as regular employees. Two of them are receiving the minimum wage which is within the poverty level. Total minimum wages paid to these senior citizen employees during the year were P128,000. One of the…
Chapter 19 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - Prob. 19.3QCh. 19 - Prob. 19.4QCh. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The cooperative operates its plan according to a five-year base period. Suppose the board of directorshas determined that the cooperative must have an additional $300 of equity capital to meet its financialrequirements during the next year. The balance of each member's equity account is shown in column2 of the table. Patronage attributable to each member during the five-year base period is shown incolumn 3. Required : Calculate The adjustment to be made in each member's equity accountarrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be…arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be…arrow_forward
- The board of directors of Alaala-Pi Co. decided on December 15, 20x1 to wind up international operations in Country B and move them to Country C. The decision was based on a detailed formal plan of restructuring, which was conveyed to all workers and management personnel at the headquarters in Country A. The cost of restructuring the operations in Country B as per this detailed plan was P10M. Should Alaala-Pi recognize a provision on December 31, 20x1? Yes, because all the recognition criteria are met No, because the obligation has an improbable outflow No, because there is no present obligation as of December 31, 20x1 No, because the outflow cannot be reliably estimatedarrow_forwardExercise 12-8 (Algorithmic) (LO. 7) Cherry Corporation, a calendar year C corporation, is formed and begins business on 10/1/2019. In connection with its formation, Cherry incurs organizational expenditures of $53,700. Round the per month amount to two decimal places. Round your final answer to the nearest dollar. Determine Cherry Corporation's deduction for organizational expenditures for 2019.arrow_forwardAn entity grants 100 cash share appreciation rights (SARs) to each of its 500 employees, on condition that the employees remain its employ for the next three years. During Year 1, 35 employees have left. The entity estimates that a further 60 will leave during years 2 and 3. During year 2, 40 employees have left and the entity estimates that a further 25 will leave during year 3. During year 3, 22 employees have left. At the end of year 3, 150 employees exercised their SARs , another 140 employees exercised their SARs at the end of year 4 and the remaining 113 employees exercised their SARs at the end of year 5. The entity estimates the fair value of the SARs at the end of each year in which a liability exists as shown below. At the end of year 3, all SARs held by the remaining employees vested. The intrinsic values of the SARs at the date of exercise (which equal the cash paid out) at the end of year 3, 4, and 5 are also shown below. What amount of compensation expense should be…arrow_forward
- S (Revenue Recognition—Membership Fees) Midwest Health Club (MHC) offers 1-year memberships. Membership fees are due in full at the beginning of the individual membership period. As an incentive to new customers, MHC advertised that any customers not satisfied for any reason could receive a refund of the remaining portion of unused membership fees. As a result of this policy, Richard Nies, corporate controller, recognized revenue ratably over the life of the membership. MHC is inthe process of preparing its year-end financial statements. Rachel Avery, MHC’s treasurer, is concerned about the company’s lackluster performance this year. She reviews the financial statements Nies prepared and tells Nies to recognize membership revenue when the fees are received.InstructionsAnswer the following questions.(a) What are the ethical issues involved?(b) What should Nies do?arrow_forwardManthei University, a private university, has provided the following information concerning selected transactions. Prepare in general journal form the entries required for each of the transactions. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.) The university was awarded a federal grant in the amount of $1,800,000 to be used for a specified research project (determined to be a nonexchange transaction). During the year, the entire $1,800,000 was received and expenses for the specified project totaled $1,000,000. Ira Beaker, a renowned chemist and alumnus, donated $7,000,000 to be used for the construction of a new chemistry building to be named Beaker Hall. The gift is to be paid to the university in equal installments over a 2-year period; the sum for the current year was received in cash. Cash outlays of $2,750,000 were made during the year for construction in progress on the new chemistry building. Other…arrow_forwardThe following Trial Balance relates to Banco Community College, a public tertiary educational institution in Guyana, as at December 31, 2019. DR CR Fees Income 4,575,622 Permanent Post 5,312,430 Allowance 856,670 Independent consultancy fees 655,600 Legal Cost 25,059 CARICOM Grant 1,540,000 Consultancy Cost 565,500 Non-Permanent Post 1,253,600 Seminars cost 500,000 Sponsorship (granted/received) 8,100 9,066,828 Receivables 468,050 Payables 182,840 20% loan 8,600 Books and Research Allowance 150,765 Plant and Machinery 3,000,000 250,000 Motor Vehicle 2,505,000 352,000 Building 12,300,000 756,000 Software 995,500 150,000 Other Incomes 211,430 Project Work Supervisory Allowance 48,500 Cash and Bank 294,233 Training and Workshop cost 104,000 Bad debt provision (student fees) 4,940 Work in Progress 8,251,735 Other Expenses 71,000 Withholding Tax 90,500 Accumulated Fund 11,205,270…arrow_forward
- The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency:a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000.b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000.c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of donation of $75,000. The donation was restricted to expenditure for modernization of equipment. The donation was accepted.d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset.e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements.f. Pledges of $60,000…arrow_forwardOn January 1, 20x1, an entity grants a franchisee the right to operate a restaurant in a specific market using the entity’s brand name, concept and menu for a period of ten years. The entity has granted others similar rights to operate this restaurant concept in other markets. The entity commonly conducts national advertising campaigns, promoting the brand name, and restaurant concept generally. The franchisee will also purchase kitchen equipment from the entity. The entity will receive ₱950,000 upfront (₱50,000 for the kitchen equipment and ₱900,000 for the franchise right) plus a royalty, paid quarterly, based on 4% of the franchisee’s sales over the life of the contract. The ₱50,000 amount reflects the stand-alone selling price of the kitchen equipment. The entity delivers the kitchen equipment to the customer on February 1, 20x1. The customer commences business operations on April 1, 20x1 and reports total sales of ₱5,000,000 for the year. How much total revenue should the entity…arrow_forward6. NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3- year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. 2018 2019 2020 Number of service contracts sold 1,400 1,820 1,650arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Accounting Basics Explained Through a Story; Author: Leila Gharani;https://www.youtube.com/watch?v=VYNTBWBqncU;License: Standard Youtube License