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Study Resources (Accounting)

22.2   Exercises 1) Will Wealth made three charitable donations in 2014. Each was for $500,000, however they were made to three different organizations as follows: 1.Will donated to a local voluntary health and welfare organization (VHWO), and indicated that the funds could be used as the VHO wanted. 2.Will donated to a local.
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15) A private, not-for-profit university received donations of $1,000,000 cash in 2014 that were restricted to certain research projects on sustainability, with an emphasis on reducing the campus waste. The university incurred and paid $450,000 of expenses on this research in 2011. In 2014, an alumnus contributed a $700,000 endowment for.
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9) Philiam Benedict dies on October 1, 2014, leaving his entire estate to his sole surviving niece, Muriel Finster. After all devise distributions and payments for estate expenses and liabilities, the fair value of Philiam's estate is $6,350,000. Required: Calculate the federal estate tax on Philiam's estate, assuming that federal estate taxes.
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13) Childrens Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1.Gross patient services charges totaled $6,400,000. 2.Included in the above revenues are: charity services, $210,000; contractual adjustments, $2,400,000; and courtesy allowances, $37,000. 3.Received a donation of marketable securities with a fair value of $165,000 for the purchase.
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6) Carousel Clothes is a voluntary health and welfare organization that provides gently-used second-hand clothes to those in need. They had the following transactions in 2014. 1.Cash gifts were received in the amount of $60,000, of which $13,000 had been pledged in the prior year. 2.Pledges made in the current year but.
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22.1   Multiple Choice Questions 1) Which of the following is not true? A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit. B) A not-for-profit entity may be governmental or non-governmental. C) A not-for-profit entity may possess ownership interests like a corporation. D) A not-for-profit entity receives resources.
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19) Record the following transactions for Porter Hospital, a private, nonprofit hospital: 1.Gross patient services revenues: $25,000,000. Billed to patients. 2.Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3.Purchased equipment by issuing a 5-year note for $200,000. 4.Received cash donations restricted for a capital building.
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1.2   Explain the decisions an organization makes and the information needed to make them. 1. Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to support key decisions in what business process? A. hire and train employees B. acquire inventory C. sell merchandise D. collect payment from customers 2. Before a firm.
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8) The following information was taken from the accounts and records of the Community Chest Foundation, a private, not-for-profit VHWO organization. All balances are as of December 31, 2014, unless otherwise noted. Unrestricted Support - Contributions$6,500,000 Unrestricted Support - Membership Dues700,000 Unrestricted Revenues - Investment Income63,000 Temporarily restricted gain on sale of investments20,000 Expenses -.
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10) Coats for Kids is a private, not-for-profit organization that provides free coats for children in the suburbs of a large city. Coats for Kids had the following transactions in 2014. 1.Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $50,000. The cash.
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3) Willborough County had the following transactions in 2014. 1.A central motor pool was established with a $200,000 nonreciprocal transfer from the General Fund. 2.The water and sewer authority, which provides services to residents for a fee, issued a bond offering at $750,000 par. Bonds proceeds are restricted to renovating the treatment.
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11) At December 31, 2014, an Enterprise Fund has the following adjusted accounts outstanding: Insurance Expense$2,000 Depreciation Expense3,000 Supplies Expense10,000 Salaries Expense100,000 Service Revenues123,000 When preparing the closing entry for the temporary accounts at December 31, 2011, the Enterprise Fund's accountant will A) credit Retained Earnings $8,000. B) credit Net Cash, $8,000. C) credit Net Position, Unrestricted $8,000. D) credit.
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21.2   Exercises 1) The City's municipal golf course had the following transactions. 1.Received a beautification(operating) grant from the state for $600,000. Received cash of $600,000. 2.Incurred and paid qualifying expenses under the state grant program in (1) above of $280,000. 3.Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000. 4.Received $1,000,000 cash from.
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1.4   Describe the major business processes present in most companies. 1. Obtaining financing from outside investors is part of which cycle? A. the revenue cycle B. the financing cycle C. the production cycle D. the payroll cycle 2. The ________ is not a transaction cycle. A. general ledger and reporting cycle B. expenditure cycle C..
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17) A private, not-for-profit university received donations of $800,000 in 2014 that were restricted to capital improvements of the football stadium. The university spent $670,000 on capital improvements for the stadium in 2014 and recorded depreciation of $130,000. In 2014, an alumnus contributed a $1,500,000 endowment for football scholarships with all.
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10) Journalize the following utility transactions in the Quest County Enterprise Fund: 1.Billings to external customers $1,600,000; billings to Quest County governmental funds $130,000. 2.Collected refundable deposits from new customers $10,000. 3.Collected 95% of all billings by fiscal year-end. 4.Refunded $4,000 in deposits to former customers. 5.Unbilled services to outside customers at year-end $14,000. 11) Prepare.
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18) The unadjusted trial balance for the general fund of the City of Nineva at June 30, 2014 is as follows: Debits Accounts receivable$40,000 Cash75,000 Due from agency fund25,000 Encumbrances60,000 Estimated revenues975,000 Expenditures750,000 Taxes receivable250,000 Credits Allowance for doubtful accounts5,000 Allowance for uncollectible taxes50,000 Appropriations785,000 Due to trust fund40,000 Fund balance-unassigned30,000 Reserve for encumbrances60,000 Revenues990,000 Taxes received in advance15,000 Vouchers payable200,000 Supplies on hand at June 30, 2014 totaled.
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11) Under the Uniform Probate Code, the personal representative must publish for what time period a notice in a newspaper of general circulation in the county in which the decedent resided? A) For one week B) For two weeks C) For three weeks D) For five weeks 12) If estate assets are insufficient to pay.
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6) Old West City had the following transactions in fiscal 2014. Assume that all expenditures were properly appropriated in the fiscal 2014 budget. 1.A six-month loan was made to the special revenue fund from the general fund amounting to $28,000. 2.A purchase order for landscaping maintenance services was issued in the amount.
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1.1   Distinguish data from information, discuss the characteristics of useful information, and explain how to determine the value of information. 1. Which of the following statements below shows the contrast between data and information? A. Data is the output of an AIS. B. Information is the primary output of an AIS..
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9) The following information was taken from the accounts and records of the Helping Hands Foundation, a private, not-for-profit organization classified as a VHWO. All balances are as of June 30, 2014, unless otherwise noted. Unrestricted Support - Contributions$2,000,000 Unrestricted Support - Membership Dues640,000 Unrestricted Revenues - Investment Income80,000 Temporarily restricted gain on sale.
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6) Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges. The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually. The club had the following transactions. 1.An addition to the golf clubhouse was added for.
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18) The four cash flow categories required in an Enterprise Fund's Statement of Cash Flows are listed below and assigned a letter code. A)Cash flows from operating activities B)Cash flows from noncapital financing activities C)Cash flows from capital and related financing activities D)Cash flows from investing activities Required: Use the correct letter code to indicate where.
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23.2   Exercises 1) Avery died testate early in 2014. The following transactions occurred relating to Avery's estate. 1.Avery's estate included bonds with a fair (market) value of $120,000. On the date of Avery's death, there was $2,000 of accrued but unpaid interest. Two months after Avery's death, a check arrived in the.
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3) Southtown Community Hospital (SCH) shows the following balances on its trial balance at June 30, 2014, their fiscal year end. SCH is a not-for-profit, nongovernmental hospital. $260,000 cash was spent on equipment from donations restricted for that purpose. Debits: Administrative services expense200,000 Contractual allowances1,200,000 Depreciation expense700,000 Employee discounts300,000 General services expense900,000 Loss on sale of fixed.
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11) Voluntary health and welfare organizations classify fund-raising costs as A) costs of services sold. B) program services. C) auxiliary expenses. D) supporting services. 12) Voluntary health and welfare organizations A) may not have paid executives or staff. B) are governed by separate GASB statements. C) use fund accounting, following the rules for proprietary fund reporting. D) are supported.
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5) Bounty County had the following transactions in 2014. 1.The budget for the county was approved, showing estimated revenues of $320,000 from local income taxes, and total estimated expenditures of $316,000. 2.Tax bills were mailed amounting to $326,000, which are due in 60 days. All but 2% was expected to be collectible. 3.Taxes.
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13) Silvia Peacock has been appointed to serve as the executor of the estate of Mr. Mickey Babay, who passed away at the age of 104 on April 5, 2011. On April 5, 2011, Mr. Babay's assets consisted of the following: Asset Book Value Fair Value Cash $40,000 $40,000 Mutual fund investment 170,000 170,000 Selonoid Incorporated common stock 22,000 28,000 Ford Mustang 24,000 16,000 Condo in.
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10. Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in.
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16) Address the following situations separately. 1.For the budgetary year beginning July 1, 2014, Coastal City expected the following cash flow resources: Property taxes, licenses, and fees$3,000,000 Proceeds of debt issue1,000,000 Interfund transfers to debt service fund750,000 In the budgetary entry, what amount did Coastal City record for estimated revenues? 2.During the fiscal year ended June.
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12) The general fund trial balance for Lakeview City held the following balances at September 30, 2014, just before closing entries were made: Due from other funds$8,000 Fund balance - unassigned50,000 Estimated revenues180,000 Revenues177,000 Appropriations176,000 Expenditures - current year169,000 Expenditures - prior year16,000 Other financing sources - transfer in from Capital Projects Fund62,000 Required: Prepare the necessary closing entries for.
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16) Prepare journal entries to record the following grant-related transactions of the municipal swimming pool, which is funded primarily by membership fees. 1.Received an operating grant in cash from the state for $200,000, to be used for life-saving and first-aid training. 2.Incurred and paid qualifying expenses on the state grant program by.
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5) Albatross University, a not-for-profit, nongovernmental university, had the following transactions in 2014. 1.Tuition bills were sent amounting to $8,000,000, with 70% collected before the end of the fiscal year; tuition waivers were granted on the total amount of $400,000, and $220,000 was expected to be uncollectible. 2.Cafeteria sales, all cash, were.
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14) Peking County incurred the following transactions during 2014: 1.Marketable securities were donated to support the county's bike and nature trails. The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000. The donor specified that all income from the securities be used for the.
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14) Journalize the following municipal zoo transactions in the Lackluster County Enterprise Fund: 1.The zoo issued $1,000,000 of 5% revenue bonds at 99 on July 1, 2014 (an interest payment date). The bond proceeds are to be used for a new polar bear exhibit and the issue will mature in 20.
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23.1   Multiple Choice Questions 1) Which of the following phrases is frequently used to refer to estate or trust accounting? A) Non-profit accounting B) Testamentary accounting C) Fiduciary accounting D) All of the above phrases are used to refer to estate or trust accounting. 2) In reference to accounting for trusts or estates, which of the.
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21.1   Multiple Choice Questions 1) What basis of accounting is used by proprietary funds? A) Modified accrual accounting B) Accrual accounting C) Cash basis accounting D) Fair value accounting 2) Enterprise funds are accounted for in a manner similar to A) internal service funds. B) capital project funds. C) special revenue funds. D) debt service funds. 3) On January 1, 2014,.
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