Question

1. The newly established Environmental Council (a nongovernmental not-for-profit organization) uses two funds for internal reporting...

1. The newly established Environmental Council (a nongovernmental not-for-profit organization) uses two funds for internal reporting purposes. The general fund is used to record day-to-day operating transactions. A building fund is used to accumulate resources for a new building to house the Council’s operations. Both funds are reported using the accrual basis of accounting. In its first year, the Council engaged in the following transactions: a) It received cash contributions of $500,000. Donors stipulate that $100,000 of this amount must be used for the new building. b) It incurred operating payroll costs of $200,000, of which $180,000 is paid in cash. c) It earned $1,000 in interest (paid in cash) on investments restricted to the acquisition of the new building. d) It transferred $25,000 from its general fund to the building fund. e) It paid $15,000 in fees (accounted for as expenses) for architectural drawings for the proposed building. Prepare journal entries to record the transactions. Be sure to indicate the fund in which the entry would be made.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Nizwa Municipality created some funds for the management of its activities, each one of the...
The Nizwa Municipality created some funds for the management of its activities, each one of the fund has a distinct fiscal and accounting entry, they are as follows: A capital project fund - earnings of bond issued to support the monetary need to construct a sports complex. A general fund - for common operating resources that are unrestricted. An internal service fund – This is a centralized motor vehicle maintenance and repairs service fund. The objective of this fund /unit...
On the following questions, indicate which fund or funds would typically be used to record each...
On the following questions, indicate which fund or funds would typically be used to record each of the following transactions/events for the City of Morgantown. please use the codes shown below. Capital Project Fund (CPF) Custodial Fund (CF) Debt Service Fund (DSF) Enterprise Fund (EF) General Fund (GF) Internal Service Fund (ISF) Investment Trust Fund (ITF) Pension Trust Fund (PTF) Permanent Fund (PF) Private Purpose Trust Fund (PPTF) Special Revenue Fund (SRF) (Hint: The transactions below may involve one, two...
6–C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the City of...
6–C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2017: Debits Credits Cash $28,000 Due from other funds 27,000 Inventory of supplies 27,500 Land 18,000 Buildings 84,000 Accumulated depreciation—buildings $30,000 Equipment 46,000 Accumulated depreciation—equipment 25,000 Accounts payable 19,000 Advance from water utility fund 30,000 Net position 126,500 Totals $230,500 $230,500 Required: a. Open a general journal for the City of Monroe Stores and...
The beginning balances as of 1/1/2017 for the City of Monroe's General Fund are listed below....
The beginning balances as of 1/1/2017 for the City of Monroe's General Fund are listed below. The City follows the modified accrual accounting method for its general fund journal entries and financial statements. The following steps are required for this project. Beginning balances: Cash $711,250; Delinquent Property Taxes Receivable $210,000; Allowance for Uncollectible Property Taxes $37,000; Accounts Payable $99,000; Due to Other Funds $27,000; Deferred Inflows of Resources $210,000; Total Fund Balance $548,250 Step 1) Record journal entries for the...
I am unsure of what is unclear. The instructions are: 1. Set up a worksheet for...
I am unsure of what is unclear. The instructions are: 1. Set up a worksheet for the solvency ratios--current ratio and the quick ratio. 2. Compute these ratios for Doctors Smith and Brown. To do so, you will need one additional piece of information that is not present on the doctors’ statements: their maximum annual debt service is $22,200. Practice Exercise 11–II: Solvency Ratios Refer to Doctors Smith and Brown’s financial statements presented in the preceding Chapter 10. Required 1....
Multiple Choice 1) On December 15 of the current year, Conrad Accounting Services signed a $40,000...
Multiple Choice 1) On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received? • Going-concern assumption. • Monetary unit assumption. • Revenue recognition principle. • Business entity assumption. • Cost principle. 2) On January 1, a company...
Revision Questions 1.     Non-Current Assets Provide the journal entries for the following transaction: Matthew built a...
Revision Questions 1.     Non-Current Assets Provide the journal entries for the following transaction: Matthew built a new building to store supplies for his business. The builder charged $250,000, the electrician cost $10,000 and a painter cost 5,000. A compulsory fire safety inspection was conducted and cost $1,000. Matthew is still worried about the building burning down and has purchased 12 months insurance for $10,000 which covers the value of the building in case of destruction. Matthew calculated that the above...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT