Disease Foundation is a large not-for-profit organization that funds research into a variety of diseases. Annual...

 

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Disease Foundation is a large not-for-profit organization that funds research into a variety of diseases. Annual revenues are in excess of $10 million. It has an endowment fund, a general fund, and a capital fund. You have just been appointed treasurer on its board and the accountant has come to you with a variety of questions. The following summarizes some of the transactions made during the December 31, 2020 year end: A) Disease Foundation received a large endowment of $2 million on January 31, 2020. During the year ended 2020, there was interest earned of S60,000. B) During the year, 1,500 volunteer hours were provided to Disease Foundation. The accountant has estimated that the value of this time is $37,500. The accountant stated that without the volunteers, Disease Foundation would have had to hire employees to perform the work. Required In accordance with the requirements of the CPA Canada Handbook Part III (Not-For-Profit Organization standards), prepare the journal entries necessary to reflect the transactions above. Assume the Company is using the restricted fund method. Please specify which fund the journal entry is being booked in. When there is an option on how to book the journal entry, please specify all options, and what criteria needs to be considered. A) 3 Points B) 4 Points Disease Foundation is a large not-for-profit organization that funds research into a variety of diseases. Annual revenues are in excess of $10 million. It has an endowment fund, a general fund, and a capital fund. You have just been appointed treasurer on its board and the accountant has come to you with a variety of questions. The following summarizes some of the transactions made during the December 31, 2020 year end: A) Disease Foundation received a large endowment of $2 million on January 31, 2020. During the year ended 2020, there was interest earned of S60,000. B) During the year, 1,500 volunteer hours were provided to Disease Foundation. The accountant has estimated that the value of this time is $37,500. The accountant stated that without the volunteers, Disease Foundation would have had to hire employees to perform the work. Required In accordance with the requirements of the CPA Canada Handbook Part III (Not-For-Profit Organization standards), prepare the journal entries necessary to reflect the transactions above. Assume the Company is using the restricted fund method. Please specify which fund the journal entry is being booked in. When there is an option on how to book the journal entry, please specify all options, and what criteria needs to be considered. A) 3 Points B) 4 Points

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Jan 31 2020 Cash Dr 200000000 To Contributlon revenueendowment fund 200000000 To record endowment fu... View the full answer