Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most of its funding comes from donations and bequests. It uses the deferral method to account for contributions and an encumbrance system to control expenditures. For simplicity, UH accounts for all of its activities through an operations fund. 20 mark UH has provided the following selected transactions for the current year: a. At the beginning of the year, UH unexpectedly received $900,000 from the government to purchase three monitoring machines. UH immediately purchased the machines. Since UH purchased the machines as soon as the funds were received, it did not prepare a purchase order for them. At the end of the year, UH took depreciation of $180,000 on the machines. b. UH's annual Christmas fundraising gala generated $2,945,000 in cash and $1. 550,000 in pledges. Based on previous years experiences, UH estimates that 90 percent of the pledges will be collected in the first three months of the following year. c. The government had granted UH's application for $960,000 in operating funds. By UH's year-end, all funds had been received except for $80,000 which was received a month after the year-end. d. Invoices totalling $2,000,000 were received for goods and services. UH had paid 87 percent of the invoiced amount by year-end. Purchase orders for $1,680,000 had been issued or these goods and services. e. The family of a late UH patient donated $200,000 to UH on the condition that it be invested in bonds or dividend-producing marketable securities. There is an additional stipulation that only the investment income can be used for operating expenditures. Required: Prepare the necessary journal entries for the above transactions. Urban Hospice (UH) is a not-for-profit organization. It receives some funding from the government, but most of its funding comes from donations and bequests. It uses the deferral method to account for contributions and an encumbrance system to control expenditures. For simplicity, UH accounts for all of its activities through an operations fund. 20 mark UH has provided the following selected transactions for the current year: a. At the beginning of the year, UH unexpectedly received $900,000 from the government to purchase three monitoring machines. UH immediately purchased the machines. Since UH purchased the machines as soon as the funds were received, it did not prepare a purchase order for them. At the end of the year, UH took depreciation of $180,000 on the machines. b. UH's annual Christmas fundraising gala generated $2,945,000 in cash and $1. 550,000 in pledges. Based on previous years experiences, UH estimates that 90 percent of the pledges will be collected in the first three months of the following year. c. The government had granted UH's application for $960,000 in operating funds. By UH's year-end, all funds had been received except for $80,000 which was received a month after the year-end. d. Invoices totalling $2,000,000 were received for goods and services. UH had paid 87 percent of the invoiced amount by year-end. Purchase orders for $1,680,000 had been issued or these goods and services. e. The family of a late UH patient donated $200,000 to UH on the condition that it be invested in bonds or dividend-producing marketable securities. There is an additional stipulation that only the investment income can be used for operating expenditures. Required: Prepare the necessary journal entries for the above transactions.
Expert Answer:
Answer rating: 100% (QA)
Question Step 1 Answer Entries for transaction given from a to e are prepared the j... View the full answer
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
Posted Date:
Students also viewed these accounting questions
-
Urban Hospice (UH) is a not for profits' organization. It receives some funding from the government but most of its funding comes from donations and brquests. It uses the deferral method to account...
-
Handbags for Hospice is a not for profit organization that operates in the Halifax area, where their focus is on raising money in support of the local Hospice. They receive donations (handbags) from...
-
Moosehead Community Centre, a not for profit organization not subject to income taxes, is considering the purchase of a new snowplow costing $20,000. The estimated useful life is eight years, with no...
-
Let U=(1,2,3,4,5,6,7,8,9,10,11,12,13,14), M=(2,4,5,6,7), and N={9,10,11,12,13,14,15). Find MON. MON (Use ascending order. Use a comma to separate answers as needed.) =
-
Suppose that you hate typing and hate filing. a. Draw a graph with "hours of typing" on the horizontal axis and "hours of filing" on the vertical. Do your indifference curves slope upward or...
-
The beam has the rectangular cross section shown. If w = 1 kN/m, determine the maximum bending stress in the beam. Sketch the stress distribution acting over the cross section. 50 mm I T150 mm -2 2...
-
Consider the following terms and definitions: Requirement 1.Match the terms with their correct definitions. TERMS: 1. Proprietorship 2. Reliability principle 3. Partnership 4. Stock 5. Limited...
-
Cost data for T. Clark Manufacturing Company for the month ending April 30, 2008, are as follows: Inventories April 1 April 30 1.Prepare a cost of goods manufactured statement for April...
-
(1 point) Get help entering answers The size, S, of a tumor (in cubic millimeters) is given by S = 2', where t is the number of months since the tumor was discovered. Give units with your answers....
-
The three forces are applied to the bracket. Determine the range of values for the magnitude of force P so that the resultant of the three forces does not exceed 2400 N. 3000 N 90%- Prob. 2-38 800 N...
-
Tina wants to go on a cruise in 6 years she estimates that it will cost her $8500 Tina has two options for saving this amount. Option A a bond that earns 5.1percent compound monthly and option B A...
-
Under limited circumstances, CPAs may express unqualified opinions on financial statements that utilize accounting principles other than those for- mulated by designated bodies. Give two examples of...
-
Are analytical procedures very effective for discovering errors and frauds?
-
How do these standards differ for (1) errors, (2) frauds, (3) direct-effect illegal acts, and (4) far-removed-effect illegal acts?
-
Two kinds of audit programs have been identified. What are they? What is the objective of each?
-
What is the purpose served by the attestation standards?
-
Describe the advantages of using CAD software for designing the parts and producing the drawings that your company uses for manufacturing products compared to more traditional (drawingboard-based)...
-
Information graphics, also called infographics, are wildly popular, especially in online environments. Why do you think infographics continue to receive so much attention? How could infographics be...
-
At Big Time University (BTU) students are allowed to purchase two basketball tickets for each home game. Each ticket contains the date of the game, and the seat information, such as section, row, and...
-
Excel Problem Required: Download the spreadsheet for this problem from the course website and perform the following tasks: 1. Explore Excels AutoFilter function. a. At the bottom of the table, in...
-
Match the flowchart or DFD segments in the right column to an appropriate description in the left column. DFDs 1. Statements are prepared and sent to customers from data contained in the accounts...
-
Which of the following statements does not prop- erly describe a limitation of an audit? a. Many audit conclusions are made on the basis of examining a sample of evidence.. b. Some evidence...
-
Which of the following types of auditing is per- formed most commonly by CPAs on a contractual basis? a. Internal auditing. b. Government auditing. c. Internal Revenue Service auditing. d. External...
-
Which of the following statements does not de- scribe a condition that creates a demand for auditing? a. Conflict between an information preparer and a user can result in biased information. b....
Study smarter with the SolutionInn App