A private not-for-profit entity receives three large cash donations: • One gift of $84,000 is restricted by the donor so that it cannot be spent for four years. • One gift of $104,000 is restricted to pay the salaries of the entity's workers. • One gift of $134,000 must be held forever with the income to be used to provide food for needy families. In the current year, income of $24,000 was earned but not spent. What is the increase in the current year in net assets with donor restrictions? Multiple Cholce O $346,000 $238,000 $322,000 $218,000

A private not-for-profit entity receives three large cash donations: • One gift of $84,000 is restricted by the donor so that it cannot be spent for four years. • One gift of $104,000 is restricted to pay the salaries of the entity's workers. • One gift of $134,000 must be held forever with the income to be used to provide food for needy families. In the current year, income of $24,000 was earned but not spent. What is the increase in the current year in net assets with donor restrictions? Multiple Cholce O $346,000 $238,000 $322,000 $218,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter15: Exempt Entities

Section: Chapter Questions

Problem 11DQ

See similar textbooks

Similar questions

A private not-for-profit entity receives three large cash donations: *One gift of $85,000 is restricted by the donor so that it can't be spent for four years *One gift of $105,000 is restricted to pay the salaries of the entity's workers *One gift of $135,000 must be held forever with the income to be used to provide food for needy families. In the current year, income of $25,000 was earned by not spent. WHat is the increase in the current year in net assets with donor restrictions? 220,000 240,000 350,000
A private not-for-profit entity receives three large cash donations: One gift of $70,000 is unrestricted. One gift of $90,000 is restricted to pay the salary of the organization’s workers. One gift of $120,000 is restricted forever with the income to be used to provide food for needy families. Which of the following statements is not ture? Temporarily restricted net assets have increased by $90,000. Permanently restricted net assets have increased by $210,000. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount. When the donated money is spent for salaries, temporarily restricted net assets will decrease.
A private not-for-profit entity receives three large cash donations:One gift of $70,000 is unrestricted.One gift of $90,000 is restricted to pay the salary of the organization’s workers.One gift of $120,000 is restricted forever with the income to be used to provide food for needy families.Which of the following statements is not true? Choose the correct.a. Temporarily restricted net assets have increased by $90,000.b. Permanently restricted net assets have increased by $210,000.c. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount.d. When the donated money is spent for salaries, temporarily restricted net assets will decrease.
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…
In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year? 4 O $1,600. O $1,000. O $2,300. O $1,300.
During the year, Private College received the following: An unrestricted $10,000 pledge to be paid the following year. A $70,000 cash gift restricted for scholarships. A notice from a recent graduate that the college is named as a beneficiary of $25,000 in that graduate's will. What amount of contribution revenue should Private College report in its statement of activities? A.) $10,000 B.) $70,000 C.) $105,000 D.) $80,000
A local private not-for-profit health care entity (Rochester Medical) incurred the following transactions during the current year. The entity has one program service (health care) and two supporting services (fundraising and administrative). The board of governors for Rochester Medical (RM) announces that $160,000 in previously unrestricted cash will be used in the near future to acquire equipment. These funds are invested until the purchase eventually occurs. RM receives a donation of $80,000 in cash with the stipulation that the money be invested in U.S. government bonds. All subsequent income derived from this investment must be paid to supplement nursing salaries. RM spends $27,000 in cash to acquire medicines. RM had received this money during the previous year. The donor had specified that it had to be used for medicines. RM charges patients $2 million. These amounts are the responsibility of government programs and insurance companies. These third-party payors will receive…
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $709,000. Of this amount, unrestricted net assets total $403,000, temporaril restricted net assets total $203,000, and permanenetly restricted net assets total $103,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries . No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions: 1. Received unrestricted cash gifts of $213,000. 2. Paid salaries of $83,000 with $23,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among…
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. 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.
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions: Received unrestricted cash gifts of $210,000. Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals…
Early in 2018, a not-forprofit organization received a $4,000,000 gift from a wealthy benefactor. This benefactor specified that the gift be invested in perpetuity with income restricted to provide speaker fees for a lecture series named for the benefactor. The not-for-profit is permitted to choose suitable investments and is responsible for all other costs associated with initiating and administering this series.Neither the donor’s stipulation nor the law addresses gains and losses on this permanent endowment. In 2018, the investments purchased with the gift earned $100,000 in dividend income. The fair value of the investments increased by $300,000. The not-for-profit’s accounting policy is to record increases in net assets, for which a donor-imposed restriction is met in the same accounting period as gains and investment income are recognized, as increases in unrestricted net assets.Five presentations in the lecture series were held in 2018. The speaker fees for the five…
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted.During the current year, the organization has the following transactions:∙ Received unrestricted cash gifts of $210,000.∙ Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals…