In organizing its incorporation in January, Chupatch incurred the following costs: state incorporation fees: $250, attorney fees: $2,500, and promotional costs: $3,200. What journal entry would you make to record Chupatch's expenses? Make it below: Date Account Debit Credit
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- You are an accountant working for a manufacturing company that makes personal care products and has recently decided to incorporate. The company incurred a total of $7,900 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on February 28, assuming they are paid in cash?You are an accountant working for a company that has recently decided to incorporate. The company has incurred $4,300 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?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.
- 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.Cherry Corporation, a calendar-year C corporation, is formed and begins business on 8/1/2019. In connection with its formation, Cherry incurs organizational expenditures of $50,600. 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.INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…
- The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year. Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities. Charged students $1.2 million in tuition. Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent. Received a cash donation of $700,000 that must be used to acquire laboratory equipment. Gave scholarships in the amount of $100,000 to…Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your first assignment your supervisor asked you to assist him with the income tax computation of a small business in the tourism sector. The company provided the following information: Allen’s Rest Well Resort is a resort cottage located incorporated in Jamaica. The company is a registered tourism operator under the Tourist Board Act. The hotel commenced operations on the 1 January 2019. Fixed Assets The following acquisitions and disposal occurred in 2021: A Corolla motor car purchased for $3,000,000. Acquired 1 April 2021. A BMW for $10,000,000. Acquired 1 November 2021. A new building constructed for $30,000,000 Laptop for $100,000 Purchase of a telephones for $950,000. The company Motor car #1 was sold for $2,700,000 Assume the relevant exchange Rate is US$152: J$1 Required Calculate the capital allowance computation for Allen’s Rest Well Resort for 2021.The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year.Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities.a. Charged students $1.2 million in tuition.b. Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.c. Received a cash donation of $700,000 that must be used to acquire laboratory equipment.d. Gave scholarships in the amount of…
- INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply…(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…Recording journal entries for nonprofits Prepare journal entries to record the following transactions. 1. Donor A gave the nonprofit a cash gift of $50,000 in June 2019, telling the nonprofit the gift could not be used until 2020. (Identify the affected net asset classification(s) in the journal entries made both in June 2019 and at the start of 2020.) 2. Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers. 3. Donor B sent a letter to a nonprofit, saying she would donate $20,000 in cash to the nonprofit, to be used for any purpose the nonprofit's trustees desired, provided the nonprofit raised an equal amount of cash from other donors. 4. Regarding the previous transaction, the nonprofit raised $23,000 in cash from…