What is a not-for-profit organization? If their objective is not to make a profit, what is it? Why is a traditional income statement not appropriate for a not-for-profit organization?
Answer to relevant QuestionsExplain why not-for-profit organizations don't have an owners' equity section on their balance sheets. What do they have instead? What does that section of the balance sheet represent? How should it be interpreted? Distinguish between stock splits and stock dividends. How is each accounted for? What is the economic significance of each? Distinguish between the book value and market value of equity. Why are the two amounts usually different? How is book value per share calculated? Explain the difference between a change in accounting policy and a change in accounting estimate. How is each accounted for in the financial statements?For each of the following transactions or economic events, prepare the journal entry that would be required. Assume the year end in each case is December 31:a. On April 2, 2017, Barthel Inc. issued 200,000 common shares for ...
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