Documente Academic
Documente Profesional
Documente Cultură
Problem I
(1) a
Recognized in period received.
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
a, b, or f (If collection is displayed to the public or otherwise held for exhibit, the
university is not required to recognize contributions as revenue.)
Problem II
(a) Cash.....................................................................................
RevenuesTemporarily Restricted Contributions...........
(b) Expenses.............................................................................
Cash...............................................................................
Reclassifications OutTemporarily Restricted
Satisfaction of Program Restrictions...............................
Reclassifications InUnrestricted
Satisfaction of Program Restrictions....................
(c) Reclassifications OutTemporarily Restricted
Satisfaction of Program Restrictions...............................
Reclassifications InPermanently Restricted
Satisfaction of Program Restrictions....................
200,000
200,000
110,000
110,000
110,000
110,000
90,000
90,000
90,000
90,000
Note to Instructor: The following entry would be made in the endowment fund:
Due from Restricted Current Fund........................................
Permanently Restricted Net AssetsMandatory
Transfer-In.................................................................
90,000
(d) Cash.....................................................................................
RevenuesTemporarily Restricted Contributions...........
15,000
Problem III
(1) (a) Cash......................................................................................
RevenuesTemporarily Restricted Contributions.............
RevenuesPermanently Restricted Contributions...........
90,000
15,000
90,000
45,000
45,000
Endowment Investments.......................................................
Cash................................................................................
45,000
(b) Cash......................................................................................
Accounts Receivable.............................................................
Deferred Revenues................................................................
RevenuesStudent Tuition and Fees...............................
1,900,000
1,686,000
148,000
66,000
Cash......................................................................................
Deferred Revenues..........................................................
158,000
(c) Cash......................................................................................
Allowance for Uncollectible Tuition and Fees.........................
Accounts Receivable........................................................
308,000
12,000
158,000
320,000
9,000
9,000
(d) Cash......................................................................................
RevenuesUnrestricted Investment Income...................
6,000
(e) Cash......................................................................................
State Appropriations Receivable......................................
75,000
40,000
Cash......................................................................................
RevenuesTemporarily Restricted Contributions.............
30,000
(g) Cash......................................................................................
Investments.....................................................................
RevenuesTemporarily Restricted Gain on the Sale of
Investments...............................................................
RevenuesTemporarily Restricted Investment Income. . .
(h) ExpensesInstruction...........................................................
ExpensesResearch.............................................................
24,000
(f)
45,000
6,000
75,000
40,000
30,000
500,000
400,000
21,000
1,100
1,900
ExpensesInstitutional Support............................................
ExpensesStudent Aid.........................................................
ExpensesStudent Services.................................................
ExpensesOperation and Maintenance of Plant...................
Accounts Payable.............................................................
Cash................................................................................
1,740,000
(i)
ExpensesResearch.............................................................
Cash................................................................................
Reclassifications OutTemporarily RestrictedSatisfaction
of Program Restrictions....................................................
Reclassifications InUnrestrictedSatisfaction of
Program Restrictions..............................................
(j)
13,000
13,000
13,000
40,000
(k) Cash......................................................................................
RevenuesTemporarily Restricted Endowment Income...
7,000
Cash......................................................................................
Pledges Receivable................................................................
RevenuesUnrestricted Contributions............................
ExpensesInstitutional Support Provision for Uncollectible
Contributions...................................................................
Allowance for Uncollectible Contributions..................
60,000
13,000
Accounts Payable..................................................................
Cash................................................................................
(l)
(2)
100,000
100,000
200,000
500,000
40,000
7,000
16,000
14,000
30,000
2,000
2,000
Temporarily Permanently
Restricted Restricted
P1,900,000
30,000
40,000
P 75,000
P45,000
40,000
7,000
1,100
6,000
7,000
1,100
1,900
P1,976,000
P 85,000
P45,000
13,000
P1,989,000
(13,000)
P 72,000
P45,000
P 500,000
413,000
111,000
100,000
500,000
200,000
P1,824,000
P 165,000
P 72,000
P45,000
487,000
40,000
50,000
P 652,000
P112,000
P95,000
Problem IV
(1)Journal entries:
(a) Cash......................................................................................
Bonds Payable.................................................................
20,000,000
20,000,000
Cash......................................................................................
RevenuesTemporarily Restricted Contributions.............
5,000,000
5,000,000
7,000,000
800,000
800,000
25,000,000
5,000,000
2,000,000
800,000
Land......................................................................................
Building.................................................................................
Mortgage Payable............................................................
RevenuesUnrestricted Contributions............................
200,000
350,000
200,000
90,000
460,000
200,000
(2)
20,000
Cash......................................................................................
RevenuesTemporarily Restricted Investment Income. . .
500,000
10,000
10,000
25,000
25,000
20,000
500,000
Permanently
Restricted
0 P6,170,000
(5,000,000)*
P
0 P6,170,000
P1,625,000
20,000
P1,645,000
P 710,000
*Note to Instructor: The reclassification amount would total P25,000 if USLSs policy is to
release the restrictions over the life of the assets rather than when placed into operation.
Problem V
(1) Closing entries:
Each asset
class is closed
separately.
250,000
200,000
225,000
400,000
350,000
500,000
475,000
25,000
840,000
500,000
75,000
50,000
250,000
University of Cebu
Statement of Activities
For Year Ended December 31, 20x8
Temporarily Permanently
Unrestricted Restricted Restricted
Total
P200,000
P 500,000
15,000
25,000
P240,000
P 500,000
P 840,000
1,230,000
250,000
200,000
225,000
400,000
350,000
Auxiliary enterprises.......................................
475,000
.................................................. 475,000
Total expenses............................................ P3,970,000
P
0 P
0
P3,970,000
Increase (decrease) in net assets........... P(280,000) P(135,000) P 500,000 P
85,000
Net assets, January 1, 20x8................................
675,000
975,000 2,500,000
4,150,000
Net assets, December 31, 20x8................. P395,000 P840,000P3,000,000
P4,235,000
Problem VI
University of Cebu
Statement of Financial Position
December 31, 20x8
Assets:
Cash........................................................................................................
Accounts receivable.................................................................................
Contributions receivable..........................................................................
Inventory of supplies...............................................................................
Student loans receivable.........................................................................
Land, buildings, and equipment (net)......................................................
Endowment investments.........................................................................
Total assets........................................................................................
Liabilities:
Accounts payable....................................................................................
Amounts held on behalf of others............................................................
Long-term debt........................................................................................
U.S. government grants refundable.........................................................
Total liabilities....................................................................................
Net assets:
Unrestricted.............................................................................................
Temporarily restricted..............................................................................
Permanently restricted............................................................................
Total net assets..................................................................................
P4,235,000
Total liabilities and net assets........................................................................
P5,365,000
P 255,000
625,000
85,000
75,000
300,000
1,000,000
3,025,000
P5,365,000
P 220,000
250,000
560,000
100,000
P1,130,000
P 395,000
840,000
3,000,000
Problem VII
(1) Patient service revenues include charges to patients for routine services, nursing
services, and professional services.
Other operating revenues include revenues from services other than health care
provided to patients as well as from sales and services to persons other than patients.
Nonoperating revenues are primarily from gifts, grants, and investment income and
gains that are peripheral or incidental to the major operation of the hospital.
(2)
a. OO
b. N
c. PS
d. PS
e. N
f. N
g. OO
h. PS
i. OO
j.
k.
PS
N
Problem VIII
(1) Accounts Receivable...................................................................
Patient Service Revenues......................................................
1,010,000
To record billings.
1,010,000
(2) Inventory....................................................................................
Other Operating RevenuesUnrestricted (contributions)......
To record donation of drugs from doctor.
12,000
(3) Cash............................................................................................
Other Operating RevenuesUnrestricted..............................
To record cash revenues.
28,800
13,000
68,000
26,000
Problem IX
(1) Accounts Receivable...................................................................
Revenues..............................................................................
8,500,000
12,000
28,800
13,000
68,000
26,000
8,500,000
Contractual Adjustments.............................................................
Allowance for Contractual Adjustments.................................
3,700,000
3,700,000
Cash............................................................................................
Contractual Adjustments.............................................................
Allowance for Contractual Adjustments......................................
Accounts Receivable.............................................................
8,500,000
4,460,000
340,000
3,700,000
Cash............................................................................................
Contractual Adjustments.......................................................
250,000
Contractual Adjustments.............................................................
Cash......................................................................................
90,000
250,000
90,000
Problem X
Temporarily
Restricted
Permanently
Restricted
P714,000
P 23,000
15,000
4,500
15,000
P 42,500
P756,500
P230,000
340,000
150,000
90,000
13,000
110,000
14,000
340,000
150,000
90,000
13,000
110,000
P947,000
P(190,500)
3,000
P18,000
120,000
56,000
P194,000
P(187,500)
P194,000
800,000
755,000
750,000
P612,500
P949,000
P750,000
3,000
18,000
120,000
Problem XI
Requirement:
1. Prepare statement of activities for the year ended June 30, 20x8.
2. Prepare statement of financial position as of June 30, 20x8
(1)
Adventist Hospital
Statement of Activities
For Year Ended June 30, 20x8
TemporarilyPermanently
Unrestricted Restricted Restricted
Total
P15,000
31,000
P15,000
P25,000
30,000
10,000
P20,000
P65,000
P20,000
P(5,000)
P30,000
P
P
P30,000
3,000
250,000
P33,000
P250,000
Adventist Hospital
Statement of Financial Position
June 30, 20x8
Assets:
Cash...................................................................................................
Pledges receivable (net of P3,000 allowance)....................................
Bequest receivable............................................................................
Accrued interest receivable................................................................
Long-term investments......................................................................
Endowment investments....................................................................
Total assets...................................................................................
Liabilities:
Accounts payable and accrued expenses...........................................
Refundable deposits...........................................................................
Total liabilities...............................................................................
Net assets:
Unrestricted.......................................................................................
Temporarily restricted........................................................................
Permanently restricted.......................................................................
Total net assets............................................................................
Total liabilities and net assets..................................................................
Multiple Choice Problems
P 40,000
9,000
5,000
1,000
140,000
250,000
P445,000
P 51,000
2,000
P 53,000
P109,000
33,000
250,000
P392,000
P445,000
1.
2.
3.
4.
5.
6.
7.
8.
9.
10
.
11
.
12
.
13
.
14
.
15
16
.
17
.
18
.
19
.
20
.
b
a
b
c
b
b
b
c
d
21
.
22
.
23
.
24
.
25
.
26
.
27
.
28
.
29
.
30
.
31
.
32
.
33
.
34
.
35
36
.
37
.
38
.
39
.
40
.
a
d
a
c
d
b
d
a
c
a
b
b
b
c
d
a
b
a
41
.
42
.
43
.
44
.
45
.
46
.
47
.
48
.
49
.
50
.
51
.
52
.
53
.
54
.
55
61.
81.
62.
82.
63.
83.
64.
84.
65.
85.
66.
86.
67.
87.
68.
88.
69.
89.
70.
90.
71.
91.
72.
92.
73.
93.
74.
94.
75
95
56
.
57
.
58
.
59
.
60
.
76.
96.
77.
97.
78.
98.
79.
99.
80.
100
.
101
.
102
.
103
.
104
.
105
.
106
.
107
.
108
.
109
.
110
.
111
.
112
.
113
.
114
.
115
.
116
.
117
.
118
.
119
.
120
.
d
a
b
d
b
a
a
b
d
a
b
c
d
b
c
c
c
b
d
d
121
.
122
.
123
.
124
.
125
.
126
.
127
.
128
.
129
.
130
.
131
.
132
.
133
.
134
.
135
.
136
.
137
.
138
.
139
.
140
.
c
a
c
c
c
c
c
a
c
b
b
c
b
a
d
a
c
d
b
b
141
.
142
.
143
.
144
.
145
.
146
.
147
.
148
.
149
.
150
.
151
.
152
.
153
.
154
.
155
.
156
.
157
.
158
.
159
.
160
.
c
b
d
a
d
c
b
c
a
c
d
e
d
b
d
b
b
c
161
.
162
.
163
.
164
.
165
.
166
.
167
.
168
.
169
.
170
.
171
.
172
.
173
.
174
.
175
.
176
.
177
.
178
.
7.
d
d
a
a
c
e
a
a
b
d
c
d
c
c
d
b
c
b
a
c P210 x 4 = P840
8. d term endowment
59. b (Permanently restricted net assets have increased by only P120,000.)
60.
61. b (The financial aid is shown as a direct reduction to the tuition revenue so that
revenues and support should total only P780,000.)
68. c (Amounts charged to patients less contractual adjustments)
69. d (The charity care work should not be recorded in any way because there is no
expectation of collection.
The contractual adjustment is reported as a contra
balance to the revenue.)
95. d (These services do not meet the criteria for donated services that are recognized.)
155. b (The charity must convey the donation to the designated beneficiary. Unless the
charity was given varied powers that allowed it to change the beneficiary, this
amount
163. d (If the other information that is included contains a call for a specific action that will
help accomplish the mission of the charity and if the mailing is not directed solely to
Theories
Completion Statements
1. unconditional
2. nonreciprocal
3. unconditional
4. when received
5. conditional
6. fair value
7. market quotations, appraisals, present-value calculations
8. nonfinancial assets, specialized skills
9. fair value, asset or asset enhancement
10. collection items
11. selectively
12. unrestricted, temporarily restricted, permanently restricted
13. endowments
14. temporarily restricted
15. temporarily restricted
16. temporarily restricted, unrestricted, donor-imposed stipulations, accounting policy,
explicit donor instructions
17. expire
18. whole
19. donor-imposed restrictions, donor-imposed restrictions
20. total assets, total liabilities, total net assets (equity)
21. unrestricted, temporarily restricted, permanently restricted
22. board-designated, unrestricted
23. category
24. unrestricted
25. separately
26. natural, matrix
27. gross
28. columnar, layered
29. change
30. direct, indirect
31. permits
True
False
65.
66.
True
False
34.
35.
36.
37.
38.
39.
40.
41.
42.
Fals
e
True
True
Fals
e
Fals
e
True
True
True
Fals
e
45.
False
56.
True
67.
False
46.
47.
48.
False
False
False
57.
58.
59.
False
False
False
68.
69.
70.
True
True
True
49.
True
60.
True
71.
False
50.
51.
52.
53,
False
True
False
False
61.
62.
63.
64.
True
True
True
True
72.
73.
False
False
Theories
a
94.
95.
96.
97.
98.
99.
100
.
101
.
102
.
103
.
104
.
105
.
106
.
107
.
108
.
109
.
110
.
111
.
112
.
113
.
Multiple Choice
74 a
84
.
.
75 c
85
.
.
76 b
86
.
.
77 b
87
.
.
78 e
88
.
.
79 e
89
.
.
80 e
90
.
.
81 e
91
.
.
82 d
92
.
.
83 a
93
.
.
Note for Nos.:
d
d
c
a
b
a
a
b
d
c
b
b
a
b
b
d
114
.
115
.
116
.
117
.
118
.
119
.
120
.
121
.
122
.
123
.
c
b
b
b
d
b
d
b
d
e
124
.
125
.
126
.
127
.
128
.
129
.
130
.
131
.
132
.
133
.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144
.
145
.
146
.
147
.
148
.
149
.
150
.
151
.
c
c
a
c
a
b
b
c
149.(The work of the librarian does not enhance a nonfinancial asset nor does it require a specialized skill that
would be purchased if not donated.)
150.(The FASB wanted to get away from fund accounting and provide information about the private not-for-profit
organization as a whole.)