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NFP Journal Entry Project

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Question;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.

 

Paper#42889 | Written in 18-Jul-2015

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