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Study Resources (Accounting)

PROBLEM 1. a. Describe the basic accounting for private not-for-profit groups promoted by FASB Statement No. 117 including a brief description of the three net asset classes. b. Indicate in which of the net asset classes the following transactions belong: 1. Donor makes gift to not-for profit which must be invested and maintained in perpetuity 2. Income Earned on.
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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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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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18.Given the following information for the City of Youngstown Municipal Golf Course: Cash Balance 1/1/01 $  25,000 User Fees-Green Fees 375,000 Net Repayment-Revolving Loan 35,000 Operating Transfer Out-General Fund (property taxes) 50,000 User Fees-League Fees and outings 100,000 User Fees-Memberships 25,000 Cash Expenses Paid to suppliers 95,000 Interest/Dividends Received 12,000 Acquisition/Improvement to Clubhouse 75,000 Cash Expenses Paid to employees 105,000 Cash Expenses Paid Maintenance and Upkeep 100,000 Principal and Interest Payments on Bond 50,000 Prepare.
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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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16.For each of the following items, either the journal entry for the original event or the journal entry involving only periodic adjustments to the fund balance accounts for a city's Pension Trust Fund is provided. Required: Prepare the missing journal entry or indicate that no entry would be made. Omit explanations. Journal Entries.
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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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21.Assume that investments in an Endowment Fund are being carried at market value. The annual net appreciation of investments should: a. not be recognized until realized. b. be recorded as investment revenue. c. be recorded as deferred revenue. d. be credited directly to the Endowment Fund Balance. 22.The American Heart Association is having its annual Heart Ball. The ball.
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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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6.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 its first contribution, consisting of 1,000 shares of Parker House common stock valued at $60,000. The stock was donated by Ron Wolf,.
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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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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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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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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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14.Consider the following transactions: a. The city government approved a $1,500,000 addition to the library to be financed by a $1,000,000 general obligation bond issue and a $500,000 state grant. The city anticipated that the proceeds from both the bond sale and the grant would be received in 20X1. It is also.
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8.The following events affected the Rapitown Arts Council: a. Contributions of $20,000, restricted for use in the children's art program, are received. b. Stocks with a book value of $10,000 and a fair market value of $11,000 were donated. The proceeds from the sale of the stocks are to be used by the local.
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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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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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15.The following selected events occurred in Hershey City's Internal Service Fund for its automobile fleet: a. An automobile fleet Internal Service Fund was established. The General Fund provided $85,000 for its working capital. Of this amount, $40,000 is to be repaid in equal annual installments over a five-year period. The remaining $45,000.
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10.A Nonexpendable Trust Fund was established to help pay for Little League baseball. A total of $100,000 was donated to Babe City. The earnings, not the principal, from the donation could be used to fund baseball. Required: Make the entries and identify the fund into which the following transactions should be made: a. The.
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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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MULTIPLE CHOICE 1.Which of the following is NOT a required characteristic of a private not-for-profit organization per the definition given by the AICPA? a. no owners or shareholders b. an operating purpose other than making a profit c. an organization dedicated to service of the public good d. Significant contributions from providers who do not expect reciprocal goods or.
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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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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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11.Consider the following transactions: a. The Cline County Tax Agency Fund was established to account for the county's responsibility of collecting Brent City and Cline County property taxes. The levies for 20X1 were $800,000 for the County General Fund and $400,000 for the City General Fund. b. Collections were $750,000 (in proportion to levies). c. The.
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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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ESSAY 1.The City of Newport operates its own solid waste landfill and charges fees to users who dump solid waste in the landfill. When should estimated costs for closure and postclosure care be accounted for? 2.What reporting is required for the accounting for employee Pension Trust Funds. 3.What is escheat property and how.
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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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5.By placing a check mark in the appropriate column, indicate all of the funds of a voluntary health and welfare organization in which the following events might correctly be recorded. (Hint: An event may require entries in more than one fund.)    Current Funds   Plant Endowment Event Unrestricted Restricted Fund      Fund     a. Allocation of expenses.
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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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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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17.The following selected events occurred in the City of Canterbury. a. On December 31, 20X7, $250,000 was transferred from the General Fund to establish a central garage to service the city's vehicles. Of this amount, $150,000 was spent on January 2, 20X8, to acquire a building with an estimated life of 25.
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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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7.Rapitown Arts Council provides financial support to a number of independent fine-art projects in the city. Data concerning several events follow: a. During 20X5, a fund-raising drive yielded $100,000 in cash and $25,000 in pledges. b. Based on past experience, 10% of the pledges are estimated to be uncollectible. c. A July 4 art fair yielded.
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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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11.Which of the following organizations would be classified as a voluntary health and welfare organization? a. the local ballet company b. the Sierra Foundation, an environmental organization c. a private elementary school d. a synagogue 12.Currently, which of the following has jurisdiction over accounting and financial reporting standards for voluntary health and welfare organizations? a. The Governmental Accounting Standards Board b. The Financial.
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3.The City of Terrytown reports the following information: Government Activities: General-Direct Expenses $  85,000 Police-Direct Expenses 115,000 Fire Safety-Direct Expenses 95,000 Public Works-Direct Expenses 185,000 Recreation-Direct Expenses 75,000 Library-Direct Expenses 140,000 Interest on Long term Debt-Direct 30,000 Police-Indirect Allocation 20,000 Fire Safety-Indirect Allocation 25,000 Public Works-Indirect Allocation 25,000 Recreation-Indirect Allocation 10,000 Library-Indirect Allocation 20,000 Charges for Police service 90,000 Charges for Fire Safety 50,000 Charges for Public Works 105,000 Charges for Library 25,000 Charges for Recreation 45,000 Operating Grants for Fire Safety 15,000 Capital Grants for Library 75,000 There are.
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MULTIPLE CHOICE 1.The GASB Statement No. 34 reporting model includes, but is not limited to which of the following reports? a. Government-wide financial statements b. a management discussion and analysis section c. funds based financial statements d. all of the above 2.Required supplementary information includes all of the following except for: a. A budgetary comparison statement or schedule b. Management discussion and analysis c. pension related.
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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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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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PROBLEM 1.GASB Statement No. 34 requires a separate set of financials statements for each of the three categories of funds. Prepare an analysis of the basic types of fund categories, what the measurement focus is and the basis of accounting, and which basic financial statements are needed. 2.From the following information, prepare.
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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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11.Which of the following is NOT a classification of the equity accounts of a proprietary fund? a. Equity invested in capital assets, net of related debt b. Equity restricted both externally and internally c. Equity encumbrances d. Equity unrestricted 12.Under the  requirements for a Statement of Cash Flow, what sections must be included in the statement? 1) Operating Cash Flows 2) Cash Flows.
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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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13.Place a check mark in the appropriate column to indicate in which of the following funds and accounts groups the given accounts would commonly be found:                       Funds                      Debt Capital Account Title General Service Projects Enterprise (1) Cash _______ _______ _______ _______ (2) Buildings _______ _______ _______ _______ (3) Improvements other than buildings _______ _______ _______ _______ (4) Depreciation expense _______ _______ _______ _______ (5) Construction in process _______ _______ _______ _______ (6) Amount available in Debt Service Fund _______ _______ _______ _______ (7) Vouchers payable _______ _______ _______ _______ (8) Matured bonds payable _______ _______ _______ _______ (9) General obligation bonds payable _______ _______ _______ _______ (10) Fund balance--reserved for encumbrances _______ _______ _______ _______    Account Groups   General General Fixed Long-term Account Title Assets.
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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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