Olivers Place is a not- for- profit entity that cares for dogs until they are adopted. It
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1. During the year, Oliver’s Place received unrestricted pledges of $ 100,000. It estimated that 95 percent of the pledges would be collected in cash.
2. It received the following gifts from various donors:
a. Donor A made a gift of common stock that had a fair value of $ 20,000. Donor A stated that the gift could be used for any purpose.
b. Donor B made a cash gift of $ 5,000, stipulating that it could be used only for a new program to take calm dogs to visit elderly people.
c. Donor C made a gift of common stock that had a fair value of $ 50,000. Donor C stipulated that the gift, and any gains on the sale of the stock, should be maintained in perpetuity and that the dividends received on the investment could be used for any purpose.
3. Volunteers contributed their time to Oliver’s Place as follows:
a. Dr. D, a veterinarian, spent 10 days caring for the medical needs of the dogs. Those services would normally cost Oliver’s Place $ 10,000.
b. Dr. E, a kidney surgeon, spent 12 days feeding the dogs, keeping them occupied, and plac-ing them for adoption. He earns $ 2,000 a day as a surgeon.
4. Oliver’s Place received dividends of $ 400 on the common stock donated by Donor A and $ 600 on the common stock donated by Donor C.
5. At year- end, the stock donated by Donor A had a fair value of $ 22,000, and the stock donated by Donor C had a fair value of $ 47,000.
6. During the year, Oliver’s Place collected $ 80,000 in cash on the pledges made in transaction 1.
7. Oliver’s Place spent $ 3,000 on the special program designed to take calm dogs to visit elderly people.
8. Oliver’s Place paid the following expenses:
Care of animals $ 40,000
Administrative expenses 30,000
9. Cash gifts of $ 12,000 were received from various donors who stipulated that the resources must be used in 2014.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
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