Child Care Center, Inc., a non-profit organization, receives revenues from various sources during the year to support its daycare centers. The following amounts were received during 20X1: • P2,000 is restricted by the donor to be used for meals for the children. • P1,500 received for subscription to a monthly child care magazine with a fair market value to subscribers of P1,000. • P10,000 to be used only upon completing a new playroom that was only 50% complete on December 31, 20X1. What amount should Child Care Centers record as contribution revenue in its 20X1 Statement of Activities? PROVIDE JOURNAL ENTRIES

Child Care Center, Inc., a non-profit organization, receives revenues from various sources during the year to support its daycare centers. The following amounts were received during 20X1: • P2,000 is restricted by the donor to be used for meals for the children. • P1,500 received for subscription to a monthly child care magazine with a fair market value to subscribers of P1,000. • P10,000 to be used only upon completing a new playroom that was only 50% complete on December 31, 20X1. What amount should Child Care Centers record as contribution revenue in its 20X1 Statement of Activities? PROVIDE JOURNAL ENTRIES

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter15: Exempt Entities

Section: Chapter Questions

Problem 33P

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Child Care Center, Inc., a non-profit organization, receives revenues from various sources during the yearto support its daycare centers. The following amounts were received during 20X1:• P2,000 is restricted by the donor to be used for meals for the children.• P1,500 received for subscription to a monthly child care magazine with a fair market value tosubscribers of P1,000.• P10,000 to be used only upon completing a new playroom that was only 50% complete onDecember 31, 20X1.What amount should Child Care Centers record as contribution revenue in its 20X1 Statement of Activities?
3. Child Care Center, Inc., a non-profit organization, receives revenues from various sources during the year to support its daycare centers. The following amounts were received during 20X1: P2,000 is restricted by the donor to be used for meals for the children. • P1,500 received for subscription to a monthly child care magazine with a fair market value to subscribers of P1,000. P10,000 to be used only upon completing a new playroom that was only 50% complete on December 31, 20X1. What amount should Child Care Centers record as contribution revenue in its 20X1 Statement of Activities? 4. Wilson Hospital, a non-profit hospital affiliated with Wilson College, had the following cash receipts for the year ended December 31, 20X1: Collection of health care receivables Contribution from donor to establish a term endowment P750,000 150,000 500,000 20,000 Tuition from nursing school Dividends received from investment in permanent endowment The dividends received are restricted by the donor…
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.
Ishak Center for Families, a nonprofit organization, receives $300,000 from a donor who requires that the Center raise $300,000 in matching funds, or the Center will have to return the $300,000. What journal entry would the Center record upon receipt of the gift? Debit cash $150,000; credit deferred revenue $300,000 Debit cash $300,000; credit contribution revenue with donor restrictions $300,000 Debit cash $300,000; credit contribution revenue without donor restrictions $300,000 No entry would be recorded
A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Revenues of $33,500. Public support of $33,500. Public support of $32,000 and a $1,500 increase in the fund balance. Public support of $32,000 and revenue of $1,500.
During the current year, a voluntary health and welfare organization receives $800,000 in unrestricted pledges. Of this amount, $300,000 has been designated by donors for use next year to support operations in the pharmacy. what amount of unrestricted support should the organizations recognize in its current-year financial statements? A.) $800,000 B.) $700,000 C.) $500,000 D.) $400,000
A not-for-profit organization receives $250 from a donor. The donor receives two tickets to a theater show and an acknowledgment in the theater program. The tickets have a fair market value of $50. What amount is recorded as contribution revenue? A.) 250 B.) 200 C.) 50 D.) 0
A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Choose the correct.a. Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500 increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.
Edwards Center for GNP Accounting, a nonprofit organization, receives a letter from a donor that includes a promise to donate $100,000 in the next fiscal year provided the Center raise an equal amount of cash from other donors. What journal entry will be recorded when the letter is received? No journal entry would be recorded. Debit cash $100,000; credit refundable advance $100,000 Debit pledge receivable $100,000; credit contribution revenue with donor restrictions $100,000 Debit pledge receivable $100,000; credit contribution revenue without donor restrictions $100,000 Debit pledge receivable $100,000; credit refundable advance $100,000
Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Painting: The amount of the contribution is Stock: The amount of the contribution is Groceries: The amount of the contribution is Adjusted Basis $6,000 $10,000 Painting held four years as an investment, to a church, which sold it immediately Apple stock held two years as an investment, to United Way, which sold it immediately Canned groceries held one month as inventory, to Catholic Meals for the Poor 15,750 35,000 7,800 13,000 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Therefore, the total charitable contribution is $ Fair Market Value
For each of the following organizations, determine its UBTI and any related UBIT. Connect, Inc., an exempt organization, provides food for the homeless. It oper- ates a thrift store that sells used clothing to the general public. The thrift shop is staffed solely by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect’s mission of providing food to the homeless. Small, Inc., an exempt organization, recorded gross unrelated business income of $900 and unrelated business expenses of $400.
For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for tuition and fees. Included in this amount were $300,000 of tuition remissions awarded to graduate teaching assistants and $150,000 of scholarships awarded to undergraduate students. Tuition and fees totaling $3,550,000 were collected during the year ended June 30, 20X9. What amount should be reported in the fund without donor restrictions as net revenue from tuition and fees for the year ended June 30, 20X9?