NFP Journal Entry Project
Requirement:
A: Prepare journal entries to record each
of the following transactions occurring during the fiscal
year ending June 30,
2010 assuming the organization follows the guidance of (A)
SFAS #116 and #117
and (B) GASB Statements #34 or #35. For those organizations
following FASB
guidance, you should prepare entries under the assumption
that property, plant,
and equipment is considered to be unrestricted
resources.
B. Assume the organizations had equity
balances as follows at the beginning of the year. Calculate
the balance in each
equity account for each NFP at the end fiscal year 2010,
after all adjustments
and closing entries have been made.
NFP (under SGAS #34 or #35) NFP (Under SFAS #116
& #117)
NP-ICA
$5,000,000
NA-PR
$4,000,000
NP-Rest
(NonExpd)
4,000,000
NA-TR
6,000,000
NP-Rest (Expd)
4,500,000
NA-UR
8,000,000
NP-UR
7,500,000
Total Equity
18,000,000
Total Equity
21,000,000
Cash contributions were received as follows: (a) $1,000,000 for
any purposes desired by the school, (b) $600,000 restricted
by donors for
research purposes, (c) 100,000 to be used during the next
fiscal year in
any manner the NFP sees fit. (d) 800,000 restricted by donors
for the
purchase of new equipment, and (e) $2,000,000 to be kept in
perpetuity
with half of all earnings to be spent for providing free
meals to the
elderly and half available for the NFP to spend as it sees
fit.The NFP spent $500,000 for the purchase of new equipment.The
NFP spent $350,000 for research.The $2,000,000 to be kept in
perpetuity was invested in
marketable securities.Earnings of $40,000 were received on
the $2,000,000 endowment.The $2,000,000 in marketable securities
was sold at a gain of
$100,000The governing board of the NFP set aside $150,000 to
be used
for future land expansion.A payment of $120,000 ($100,000 for
principal reduction and
$20,000 in interest) was made on a mortgage that had been
signed five
years ago when the NFP purchased its current office
building.Depreciation of $15,000 was recorded for the year.
NFP Journal Entry Project
Requirement:
A: Prepare journal entries to record each
of the following transactions occurring during the fiscal
year ending June 30,
2010 assuming the organization follows the guidance of (A)
SFAS #116 and #117
and (B) GASB Statements #34 or #35. For those organizations
following FASB
guidance, you should prepare entries under the assumption
that property, plant,
and equipment is considered to be unrestricted
resources.
B. Assume the organizations had equity
balances as follows at the beginning of the year. Calculate
the balance in each
equity account for each NFP at the end fiscal year 2010,
after all adjustments
and closing entries have been made.
NFP (under SGAS #34 or #35) NFP (Under SFAS #116
& #117)
NP-ICA
$5,000,000
NA-PR
$4,000,000
NP-Rest
(NonExpd)
4,000,000
NA-TR
6,000,000
NP-Rest (Expd)
4,500,000
NA-UR
8,000,000
NP-UR
7,500,000
Total Equity
18,000,000
Total Equity
21,000,000
Cash contributions were received as follows: (a) $1,000,000 for
any purposes desired by the school, (b) $600,000 restricted
by donors for
research purposes, (c) 100,000 to be used during the next
fiscal year in
any manner the NFP sees fit. (d) 800,000 restricted by donors
for the
purchase of new equipment, and (e) $2,000,000 to be kept in
perpetuity
with half of all earnings to be spent for providing free
meals to the
elderly and half available for the NFP to spend as it sees
fit.The NFP spent $500,000 for the purchase of new equipment.The
NFP spent $350,000 for research.The $2,000,000 to be kept in
perpetuity was invested in
marketable securities.Earnings of $40,000 were received on
the $2,000,000 endowment.The $2,000,000 in marketable securities
was sold at a gain of
$100,000The governing board of the NFP set aside $150,000 to
be used
for future land expansion.A payment of $120,000 ($100,000 for
principal reduction and
$20,000 in interest) was made on a mortgage that had been
signed five
years ago when the NFP purchased its current office
building.Depreciation of $15,000 was recorded for the year.
NFP Journal Entry Project
Requirement:
A: Prepare journal entries to record each
of the following transactions occurring during the fiscal
year ending June 30,
2010 assuming the organization follows the guidance of (A)
SFAS #116 and #117
and (B) GASB Statements #34 or #35. For those organizations
following FASB
guidance, you should prepare entries under the assumption
that property, plant,
and equipment is considered to be unrestricted
resources.
B. Assume the organizations had equity
balances as follows at the beginning of the year. Calculate
the balance in each
equity account for each NFP at the end fiscal year 2010,
after all adjustments
and closing entries have been made.
NFP (under SGAS #34 or #35) NFP (Under SFAS #116
& #117)
NP-ICA
$5,000,000
NA-PR
$4,000,000
NP-Rest
(NonExpd)
4,000,000
NA-TR
6,000,000
NP-Rest (Expd)
4,500,000
NA-UR
8,000,000
NP-UR
7,500,000
Total Equity
18,000,000
Total Equity
21,000,000
Cash contributions were received as follows: (a) $1,000,000 for
any purposes desired by the school, (b) $600,000 restricted
by donors for
research purposes, (c) 100,000 to be used during the next
fiscal year in
any manner the NFP sees fit. (d) 800,000 restricted by donors
for the
purchase of new equipment, and (e) $2,000,000 to be kept in
perpetuity
with half of all earnings to be spent for providing free
meals to the
elderly and half available for the NFP to spend as it sees
fit.The NFP spent $500,000 for the purchase of new equipment.The
NFP spent $350,000 for research.The $2,000,000 to be kept in
perpetuity was invested in
marketable securities.Earnings of $40,000 were received on
the $2,000,000 endowment.The $2,000,000 in marketable securities
was sold at a gain of
$100,000The governing board of the NFP set aside $150,000 to
be used
for future land expansion.A payment of $120,000 ($100,000 for
principal reduction and
$20,000 in interest) was made on a mortgage that had been
signed five
years ago when the NFP purchased its current office
building.Depreciation of $15,000 was recorded for the year.
NFP Journal Entry Project
Requirement:
A: Prepare journal entries to record each
of the following transactions occurring during the fiscal
year ending June 30,
2010 assuming the organization follows the guidance of (A)
SFAS #116 and #117
and (B) GASB Statements #34 or #35. For those organizations
following FASB
guidance, you should prepare entries under the assumption
that property, plant,
and equipment is considered to be unrestricted
resources.
B. Assume the organizations had equity
balances as follows at the beginning of the year. Calculate
the balance in each
equity account for each NFP at the end fiscal year 2010,
after all adjustments
and closing entries have been made.
NFP (under SGAS #34 or #35) NFP (Under SFAS #116
& #117)
NP-ICA
$5,000,000
NA-PR
$4,000,000
NP-Rest
(NonExpd)
4,000,000
NA-TR
6,000,000
NP-Rest (Expd)
4,500,000
NA-UR
8,000,000
NP-UR
7,500,000
Total Equity
18,000,000
Total Equity
21,000,000
Cash contributions were received as follows: (a) $1,000,000 for
any purposes desired by the school, (b) $600,000 restricted
by donors for
research purposes, (c) 100,000 to be used during the next
fiscal year in
any manner the NFP sees fit. (d) 800,000 restricted by donors
for the
purchase of new equipment, and (e) $2,000,000 to be kept in
perpetuity
with half of all earnings to be spent for providing free
meals to the
elderly and half available for the NFP to spend as it sees
fit.The NFP spent $500,000 for the purchase of new equipment.The
NFP spent $350,000 for research.The $2,000,000 to be kept in
perpetuity was invested in
marketable securities.Earnings of $40,000 were received on
the $2,000,000 endowment.The $2,000,000 in marketable securities
was sold at a gain of
$100,000The governing board of the NFP set aside $150,000 to
be used
for future land expansion.A payment of $120,000 ($100,000 for
principal reduction and
$20,000 in interest) was made on a mortgage that had been
signed five
years ago when the NFP purchased its current office
building.Depreciation of $15,000 was recorded for the year.
