Taylor Woodley spent 50 hours building a pavilion behind the office of a private not-for-profit entity. Woodley normally charges $30 per hour but did this work for free. How should the private not-for-profit entity record this? a. Increase the fund balance by $1,500 b. Increase assets and contribution revenue by $1,500. c. Increase expenses and contribution revenue by $1,500. d. Nothing should be recorded because the entity did not pay Weatherly.

Taylor Woodley spent 50 hours building a pavilion behind the office of a private not-for-profit entity. Woodley normally charges $30 per hour but did this work for free. How should the private not-for-profit entity record this? a. Increase the fund balance by $1,500 b. Increase assets and contribution revenue by $1,500. c. Increase expenses and contribution revenue by $1,500. d. Nothing should be recorded because the entity did not pay Weatherly.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions

Section: Chapter Questions

Problem 13DQ

See similar textbooks

Similar questions

Prepare journal entries to record the transactions.1. Donor A gave a nonprofit a $55,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year.2. Donor B gave a nonprofit a $27,500 cash gift in July, telling the nonprofit the gift could be used only for research on a specific project.3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individualspromised to make cash contributions totaling $2,200,000 during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash.4. Donor C gave a nonprofit several investments having a fair value of $3,300,000 in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity,but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $110,0005. Using the…
Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She replaces without charge an administrator who would have otherwise been paid $31,000. Which of the following statements is true? Choose the correct.a. The charity should recognize a restricted gain of $31,000.b. The charity should recognize a contribution of $31,000 as an increase in unrestricted net assets as well as salary expense of $31,000.c. The charity should recognize a reduction in expenses of $31,000.d. The charity should make no entry.
Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She replaces without charge an administrator who would have otherwise been paid $31,000. Which of the following statements is true? The charity should recognize a restricted gain of $31,000. The charity should recognize a contribution of $31,000 as an increase in unrestricted net assets as well as salary expense of $31,000. The charity should recognize a reduction in expenses of $31,000. The charity should make no entry.
A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? Choose the correct.a. $50,000b. $80,000c. $130,000d. $280,000
To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? Choose the correct.a. No part of the $100,000 can be reported as a program service expense.b. Some part of the $100,000 must be reported as a program service expense.c. No authoritative guidance exists, so the organization can allocate the cost as it believes best.d. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.
a local social worker earning 14 per hour working for the state government contributed 550 hours of time at no charge to the Sunrise homeless shelter, a voluntary health and welfare entity. if not for these donated services. an additional staff person would have been hired by the entity. how should the Sunrise Homeless Shelter record the contributed services?
A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100. The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Choose the correct.a. Make no entry.b. Record contributed support of $2,100 and community assistance expense of $2,100.c. Recognize revenue of $2,100.d. Recognize contributed support of $2,100 and community expenditures of $2,100.
To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? No part of the $100,000 can be reported as a program service expense. Some part of the $100,000 must be reported as a program service expense. No authoritative guidance exists, so the organization can allocate the cost as it believes best. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.
A private not-for-profit entity receives three large cash donations:One gift of $70,000 is unrestricted.One gift of $90,000 is restricted to pay the salary of the organization’s workers.One gift of $120,000 is restricted forever with the income to be used to provide food for needy families.Which of the following statements is not true? Choose the correct.a. Temporarily restricted net assets have increased by $90,000.b. Permanently restricted net assets have increased by $210,000.c. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount.d. When the donated money is spent for salaries, temporarily restricted net assets will decrease.
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.
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions: Received unrestricted cash gifts of $210,000. Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals…
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted.During the current year, the organization has the following transactions:∙ Received unrestricted cash gifts of $210,000.∙ Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals…