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Study Resources (Accounting)

7.Records of the items that follow are maintained in a public university's Plant Fund. Fill in the name or names of the appropriate plant subgroup funds in which the items are recorded. Plant Subgroup Item         Funds        (1) Plant assets which were acquired with Unrestricted Current Funds 1. ___________________ (2) Accumulation of resources to keep plant in operating condition 2. ___________________ (3) Accumulation of.
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9.On February 1, 20X8, Sharon Kane died. Sharon left a valid will. Events in 20X8 related to the estate are as follows: (1) The inventory of the estate on February 1, 20X8 included the following: Cash in the bank $100,000 Bayside Co. common stock:      10,000 shares purchased at a cost of $5 per share      Bayside.
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Dremer Corporation: On June 1, 20X5, the books of Dremer Corporation show assets with book values and realizable values as follows: Assets Realizable Book Value        Value Cash $    1,850 $    1,850 Accounts Receivable (net) 21,200 17,000 Note Receivable 15,000 15,000 Inventory 41,000 20,000 Investment in Calandir Stock 5,800 15,000 Land and Building (net) 98,500 92,800 Equipment (net)     43,000       8,000      Totals $226,350 $169,650 Dremer's books show the following liabilities: Liabilities Book Value Accounts payable (50,000 secured by inventory      and.
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21.A corporation's accounting statement of affairs shows a dividend of 115%. The dividend means that a. secured creditors will receive an amount in excess of the book value of their claims. b. unsecured creditors will receive an amount in excess of the book value of their claims. c. stockholders may expect some return on their interests. d. an.
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11.As expenses are made in compliance with donor restrictions on previously made contributions, what type of journal entry must be made to record the transaction from the aspect of the current, unrestricted fund? a. Reclassification Out-Temporarily Restricted    Satisfaction of donor restriction             XXX      Reclassification In-Temporarily        Restricted -Satisfaction        of donor restriction                            XXX b. Cash                                             XXX    Revenue-Temporarily.
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5.Morton Corporation has received permission to reorganize under Chapter 11. Just prior to recording the reorganization, the balance sheet appears as follows: Assets Cash $     75,000 Accounts receivable (net) 225,000 Inventory 200,000 Investments 175,000 Plant assets (net)      900,000      Total assets $1,575,000 Liabilities Accounts payable $   600,000 Interest payable 75,000 Mortgage notes payable      700,000      Total liabilities $1,375,000 Stockholders' Equity Common stock.
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15.The following events are for the Public Health Agency, a voluntary health and welfare organization that conducts two programs: public health research and public health education: a. The agency received a donation of capital stock with a market value of $200,000, with the stipulation that the income and principal may be used.
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13.Consider the following events for Chase Private University: a. Unrestricted contributions are pledged in the amount of $500,000. b. Purchase of material and supplies totaling $100,000 of which $25,000 is not yet paid. c. Endowment income of $8,000 is restricted to student aid activities. d. A federal grant for $200,000 was awarded for research. e. Materials and supplies used were.
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31.Which of the following is an example of an interfund transaction? a. A retired professor donates $100,000 to be used for student aid. b. Investments and $18,000 from Annuity fund investment is received. c. A construction contract is completed and paid in full. d. Cash is set aside for payment of a mortgage. 32.The Board of Trustees decides to.
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10.Betty Bloome died on February 28, 20X5. The following trial balance was prepared by the executor of Betty's estate as of October 31, 20X5:      As to Principal           As to Income     Cash--Principal $  75,000 Cash--Income $21,000 Corporation Stock 150,000 Assets Subsequently      Discovered. $  17,000 Loss on Realization of      Principal Assets 3,000 Funeral and Administrative      Expense 9,000 Debts of Decedent Paid 14,000 Legacies Distributed 20,000 Devises Distributed 10,000 Estate.
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21.              The party receiving the principal of an estate may be referred to as the a. income beneficiary. b. remainderman. c. devisee. d. b and c. 22.Which of the following statements is true concerning the handling of discounts and premiums for bonds that are part of an estate at the time of death? a. Straight-line amortization is normally used to amortize.
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14.Al Sooner died on January 15, 20X5. Records disclose the following estate: Cash in the bank $    7,500 5% note receivable, including $50 accrued interest 3,050 Stocks 70,000 Dividends declared on stocks 250 8% mortgage receivable, including $150 accrued interest 30,150 Real estate - apartment house 400,000 Household effects 27,250 Dividends receivable from the Peg Sooner Trust Fund   250,000      Total inventory of assets $788,200 Cash receipts: Jan. 20 Dividends $    1,500 25 5%.
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11.The following events occurred as part of operations in Hard Knocks (private) University: a. To construct a new computer center, the University floated at par a $10,000,000 10% serial bond issued on January 1, paying interest December 31 and June 30. b. $100,000 for computer equipment was donated by a wealthy alumnus. c. Payments for construction.
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16.Willie Walker, a widower, died on February 1, 20X8. He had no living relatives. The following selected events occurred after Walker's death: (1) Mary Paxton, the executrix named in the will, filed an inventory of the estate assets consisting of: Cash $20,000 Owl Corporation 12% bonds, paying interest      semiannually on December 1 and June 1 (market.
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PROBLEM 1.Adequate estate planning is critical for an individual or family with a sizable net worth. List the goals of estate planning for large, more complex estates. 2.Estate planning can be a complex process because of the many factors and objectives that must be considered. Not the least of these factors are.
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19.The following is an adjusted preclosing trial balance of the General Funds of Barnes Nursing Home (non-profit). Barnes Nursing Home Adjusted Current Funds Trial Balance                December 31, 20X5               Unrestricted Restricted Cash 300,000 107,000 Pledges Receivable 12,000 206,000 Accrued Interest Receivable. 1,000 Inventory of Supplies 120,000 Vouchers Payable 50,000 10,000 Accrued Expenses 25,000 Refundable Deposits 2,000 Allowance for Uncollectible      Pledges 3,000 Net Assets, January 1, 20X5         Designated--Unrestricted 12,000         Undesignated--Unrestricted 26,000         Temporarily Restricted 3,000         Permanently Restricted 250,000 Contributions 200,000 50,000 Resident Service Revenue 415,000 Other.
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3.Following is the balance sheet of Tontoe Corporation on July 1, 20X5, just prior to obtaining the required stockholder approval to undergo a quasi-reorganization: Tontoe Corp. Balance Sheet   July 1, 20X5  Assets Current Assets:      Cash $    5,000      Accounts receivable 110,000      Inventory   105,000 $220,000 Property, plant, and equipment:      Land $  50,000      Plant and equipment $200,000      Less accumulated depreciation (120,000)    .
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PROBLEM 1.Hogan, Inc. is a telecommunications company. Currently, Hogan is experiencing difficulty in servicing its long-term debt. The corporation has obtained permission from its creditors to restructure outside of the court system with the following transactions: a. A piece of equipment that had cost Hogan $95,000 and had $19,000 of accumulated depreciation was.
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5.The following events involve a loan fund of East York public University: a. To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000. Market value of the securities at time of donation was $160,000. b. The securities were later sold for $189,000. The original agreement stipulated that.
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14.The following events are for Tubac Center, a not-for-profit hospital. The hospital records expense data based on the nature of the expense, such as wages, salaries, and benefits. a. Patient services amounting to $300,000 were billed. A 5% allowance for uncollectibles is to be recorded. b. Of $70,000 gross billings in part (a), third-party.
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13.The Good Health Agency is a voluntary health and welfare organization that conducts two programs: public health research and public health education. a. Public support for general activities consisted of the following: Cash $  60,000 Gross pledges 295,000 Estimated uncollectible pledges 15,000 b. During the year, several rummage sales were held to raise funds for general operations. Gross cash proceeds.
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10.South City Shelter is a voluntary health and welfare organization that provides emergency shelter and health care for the homeless, as well as educational programs. South City Shelter incurred the following transactions: a. A computer with a book value of $500 (original cost, $2,800) was sold for $650. b. Kitchen equipment with a book.
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7.On June 1, 20X5, the books of Hallow Corporation show assets with book values and realizable values as follows: Assets Book Value Realizable Value Cash $     10,000 $  10,000 Receivables (net) 100,000 50,000 Inventory 140,000 100,000 Land and building (net) 600,000 650,000 Equipment (net)      400,000   100,000      Totals $1,250,000 $910,000 Hallow's books show the following liabilities: Liabilities Book Value Accounts payable $   260,000 Wages payable (eligible for priority) 10,000 Taxes payable 20,000 Accrued interest on notes payable 30,000 Accrued interest on.
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10.Consider the following transactions for the University of Northland (private): a. On January 1st a gift of $100,000 was received from an alumnus. She requested one half be used for student loans and the other as a pure endowment contribution. b. Loans totaling $25,000 are made to students. Collections from other loans made to.
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15.Trent Tyler died on January 15, 20X9. Records disclose the following estate: Cash in the bank $  15,000 8% note receivable, including $100 accrued interest 8,100 Stocks 80,000 Dividends declared on stocks 600 10% mortgage receivable, including $200 accrued interest 40,200 Real estate - apartment house 220,000 Household effects 21,500 Dividends receivable from Terry Tyler Trust Fund   100,000      Total inventory of assets $485,400 Cash receipts: Jan. 20 Dividends $    4,500 25 8% note.
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4.Explain how certain transactions that traditionally were reported as restricted by private universities will now be categorized as unrestricted exchange transaction. Describe how they will be accounted for per FASB 116. 5.In accounting for health care services, several methods are utilized. Required: a. List and briefly define the three types of classifications of health.
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MULTIPLE CHOICE 1.Which of the following is an illustration of an action that can be taken to help a troubled firm without using the court system? a. asset transfers to settle debt b. equity interest granted in exchange for debt c. modifications of interest rates more favorable to the firm d. All or a combination can be used. 2.In a.
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16.Consider the following unrestricted donations to a not-for-profit health care facility: a. Donation of property and equipment. b. Donation of substantial amount of medical supplies. c. Donation of resources to endow a fund. d. Donation of cash to be used to conduct cancer research. e. Volunteer provision of services by local high school students involving visiting and reading to patients. Required: Using.
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18.The post-closing trial balance for Blakely Hospital as of January 1, 20X5, is as follows: Debit Credit Cash 79,800 Patient Accounts Receivable 37,000 Allowance for Adjustments and Provision for Uncollectibles 7,000 Inventory of Supplies 14,000 Long-Term Investments 146,200 Property, Plant, and Equipment 2,830,000 Accumulated Depreciation 564,000 Endowment Investments 260,000 Vouchers Payable 16,000 Accrued Expenses 6,000 Mortgage Bonds Payable 150,000 Unrestricted Net Assets 1,158,000 Temporarily Restricted Net Assets 1,250,000 Permanently Restricted Net Assets    216,000 3,367,000 3,367,000 The following events occurred during 20X5: a. Gross charges.
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14.The Elder Citizens Agency is a voluntary health and welfare organization. The following events occur: a. This year's fund drive resulted in unrestricted pledges totaling $130,000. Pledges of $25,000 were received for a special hot meal program. b. Cash collected from pledges: unrestricted, $100,000; restricted, $18,000. c. A philanthropist, who is an attorney, contributed a painting.
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ESSAY 1.Are not-for-profit universities required to use fund accounting? 2.How has the adoption of GASB Statement No. 35 changed the reporting standards for colleges and universities. 3.In accounting for not-for-profit public universities, Endowment and Similar Funds are commonly used. Required: a. List and briefly define the three types of endowments often found in the university environment. b. Describe.
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MULTIPLE CHOICE 1.Which of the following is NOT an advantage of forming an inter vivos trust? a. it is a popular way to transfer property to one's heirs without a will, thereby avoiding probate b. it is formed during the decedent's lifetime c. any trust is not recognized as a taxable entity d. the decedent is the trustee until.
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12.Consider the following events affecting Private University: a. A $2,000,000, 10% serial bond issue, paying interest semiannually, was sold at face value on an interest payment date. Proceeds of the bond issue are to be used to add a wing to the library. b. A lot valued at $30,000 was donated by a former.
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16.The Community Drug Clinic is a voluntary health and welfare organization that conducts two programs: drug abuse research and drug abuse education. An inexperienced accountant recorded the following entries: a. Pledges Receivable 200,000      Income 200,000         To record signed pledges received. Of the total,         20% must be used for a special local college         program. It.
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15.A not-for-profit hospital uses three revenue-controlling accounts: Patient Service Revenue, Other Operating Revenue, and Nonoperating Revenue. Required: Indicate which of the three revenue accounts would be credited to record the following transactions, or None if none of the accounts is appropriate. a. Snack bar sales _______________________ b. Dividends from unrestricted investments _______________________ c. Operating room fees _______________________ d. Pharmacy sales to patients _______________________ e. Fees for.
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20.The following data apply to Riverside Hospital, a not-for-profit organization. a. Summarized cash receipts showed cash received from the following: Patients and third-party payers $903,420 Other operational activities 57,120 Donor restricted gifts for programs 11,220 Unrestricted interest from investments 25,100 b. Summarized cash payments showed cash paid to the following: Suppliers and employees $892,140 The bank to cover interest charges 14,500 For the purchase of equipment 45,450 c. Donation of.
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9.The following events are for South City Shelter, a voluntary health and welfare organization that provides emergency shelter and health care for the homeless, as well as educational programs: a. A fund-raising program for a portable medical clinic yielded cash contributions of $50,000 and pledges of $100,000. In the past, 5% of.
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17.Elder Care Services is a not-for-profit provider of health care services. a. The condensed income statement for the year ended August 31, 20X5 shows the following: Net patient service revenue $9,164,600 Other operating revenue      568,000      Total operating revenues $9,732,600         Operating expenses (includes $478,200 in         depreciation; $6,600 of amortization of         deferred financing costs; and an increase in        .
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21.A pledge is unconditional if it a. depends only on the passage of time. b. depends on the demand by the university to be paid. c. can be spent on any purpose. d. a and b are correct. 22.A contribution is a(n) a. conditional transfer of cash. b. unconditional transfer of cash. c. donation of services which would not be purchased otherwise. d. donation of unskilled services.
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11.Put the following classes in the order allowed by the Bankruptcy Act, starting with the highest priority to the lowest: 1) Expenses to administer estate 2) Tax claims of governmental units 3) Wages (including salaries and commissions) up to $4,000 earned within 90 days 4) deposits up to $1,800 each for goods or services never received from the.
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12.Senior Wellness Center is a voluntary health and welfare organization devoted to health education for the elderly. It has investments in its Restricted Fund, its Plant Fund, and its Endowment Fund. On January 2, the organization decided to pool the investments of the three funds, and thereafter to maintain all.
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PROBLEM 1.Carlton (private) University received the following pledges during 20X5: a. Jane Baker pledges $30,000 to be used for student scholarships. b. As a result of a pledge drive, $400,000 is pledged to be paid by the end of the accounting year. Ten percent of pledges in the past have been shown to be uncollectible..
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3.The following selected transactions affected the Unrestricted Current Funds of Tiger State University (public) during the current fiscal year: a. The Board of Control approved a budget estimating $10,000,000 in revenues and expenses of $9,850,000. b. Student tuition assessed during the year was $4,000,000, of which $3,700,000 had been collected, with 3% considered uncollectible. c. Student.
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4.For estate planning purposes, Albert began distributing gifts in 2008. Already, in 2008, Albert has given his daughter stocks costing $5,000, with a current market value of $10,000. Required: What is the maximum additional gift Albert can give in 2008 to his daughter in cash without incurring any gift tax liability assuming.
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MULTIPLE CHOICE 1.What is the basis of accounting used in accounting for not-for-profit universities? a. fund accounting b. accrual basis c. modified accrual basis d. cash basis 2.With the adoption of GASB statement #35 in 1999, public colleges and universities are required to report their activities in a manner more like a(n): a. general fund b. special revenue fund c. enterprise fund d. fiduciary fund 3.Currently, which organization has.
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