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ACC 548 Week 5 Textbook Problems (2017 version)

ACC 548 Week 5 Textbook Problems (2017 version)

Author: l marshall

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EX. 12-4

Some, but not all, contributions of goods and services are given accounting recognition.
In each of the following scenarios, an organization receives a contribution in kind. Prepare journal entries, as necessary, to give them accounting recognition. For each, tell why you made an entry or why you did not.
A local not-for-profit art museum receives advertising for its yearly benefit from radio station WLOU. The airtime would have cost the museum $1,000
Volunteers for “Breakfast on Bikes,” a voluntary health and welfare organization, deliver hot meals to the elderly three times a week. Each of the ten volunteers works about six hours per week. All of the volunteers have permanent jobs with pay averaging $16.10 an hour.
Lynn Simms, a local CPA, maintains the books and records of her church. Although her normal billing rate is $60 per hour, she accepts no payment from the church. She works on church matters approximately four hours a week.
A construction company allows a not-for-profit community association to use its bulldozer at no cost to clear land for a new baseball park. If the association had to rent the bulldozer it would have incurred costs of $1,400
EX. 13-4

University loan funds can readily be accounted for within the general framework applicable to not-for-profit organizations.
Bronxville College maintains a loan fund of approximately $1 million (including receivables). The funds are invested in stocks and bonds, and all investment income must be added to the balance in the fund. The fund, however, is unrestricted inasmuch as it was established by the college itself, not by donors.
Prepare journal entries to record the following events and transactions that took place during the year.
The college directed an additional $75,000 of donor contributions to the loan fund
The fund made new student loans of $200,000. It estimated that approximately 10 percent will be uncollectible.
It earned interest and dividends of $6,000. In addition, the market value of its investments increased by $3,000.
It collected $140,000 in loan repayments, plus an additional $40,000 in interest.
It wrote off $20,000 of loans as uncollectible.
EX. 14-6

Accounting for investments
On June 30, 2018, a county (government) hospital bought 3,000 shares of stock for $94,000 intending to hold the investment for its proposed expansion of its trauma center. The market value of the stock on August 31, 2015, the hospital's fiscal year-end, was $102,000. When the trauma center expansion was approved by the county district in February 2019, the hospital liquidated the stock for $90,000.
Journalize all the transactions related to the investment
Assume instead that this was a private not-for-profit hospital, how would these journal entries differ.

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