Académique Documents
Professionnel Documents
Culture Documents
Problem I
(1) a
(2)
(3)
(4)
(5)
(6)
(7)
Recognized in period received. Restriction released either (1) when asset is placed
in service or (2) over its useful life.
Recognized when conditions are met.
(8)
(9)
(10)
(11)
(12)
(13)
(14)
Recognized in period received. Restriction is released either (1) when asset is placed
in service or (2) over useful life of asset.
(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
110,000
200,000
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
90,000
45,000
1,686,000
148,000
66,000
Cash .......................................................................................................
Deferred Revenues .......................................................................
158,000
308,000
12,000
9,000
6,000
75,000
40,000
Cash .......................................................................................................
RevenuesTemporarily Restricted Contributions...................
(g) Cash .......................................................................................................
Investments.....................................................................................
RevenuesTemporarily Restricted Gain on the Sale of
Investments..............................................................................
RevenuesTemporarily Restricted Investment Income ........
(h) ExpensesInstruction..........................................................................
30,000
(f)
24,000
500,000
15,000
45,000
45,000
45,000
1,900,000
158,000
320,000
9,000
6,000
75,000
40,000
30,000
21,000
1,100
1,900
(i)
ExpensesResearch ...........................................................................
ExpensesInstitutional Support.........................................................
ExpensesStudent Aid .......................................................................
ExpensesStudent Services...............................................................
ExpensesOperation and Maintenance of Plant ........................
Accounts Payable ........................................................................
Cash.................................................................................................
400,000
100,000
100,000
200,000
500,000
ExpensesResearch ...........................................................................
Cash.................................................................................................
13,000
(2)
13,000
13,000
13,000
(j)
40,000
(k)
Cash .......................................................................................................
RevenuesTemporarily Restricted Endowment Income ......
7,000
(l)
Cash .......................................................................................................
Pledges Receivable ............................................................................
RevenuesUnrestricted Contributions .....................................
16,000
14,000
60,000
1,740,000
2,000
40,000
7,000
30,000
2,000
P1,900,000
30,000
Temporarily Permanently
Restricted
Restricted
Total
P45,000
P1,900,000
150,000
6,000
P1,976,000
7,000
1,100
1,900
P 85,000
P45,000
40,000
7,000
1,100
7,900
P2,106,000
13,000
P1,989,000
(13,000)
P 72,000
P45,000
0
P2,106,000
40,000
P 500,000
413,000
P 75,000
P 500,000
413,000
111,000
100,000
500,000
200,000
P1,824,000
P 165,000
487,000
P 652,000
P
0
P 72,000
40,000
P112,000
P
0
P45,000
50,000
P95,000
111,000
100,000
500,000
200,000
P1,824,000
P 282,000
577,000
P 859,000
Problem IV
(1) Journal entries:
(a) Cash .......................................................................................................
Bonds Payable...............................................................................
20,000,000
Cash .......................................................................................................
RevenuesTemporarily Restricted Contributions...................
5,000,000
7,000,000
800,000
25,000,000
7,000,000
800,000
7,000,000
16,000,000
2,000,000
5,000,000
2,000,000
800,000
200,000
350,000
200,000
5,000,000
5,000,000
Land........................................................................................................
Building...................................................................................................
Mortgage Payable .......................................................................
RevenuesUnrestricted Contributions .....................................
20,000,000
20,000
500,000
2,800,000
90,000
460,000
200,000
20,000
500,000
(i)
Cash .......................................................................................................
RevenuesTemporarily Restricted Investment Income ........
(j)
(2)
10,000
10,000
25,000
Unrestricted
Temporarily
Restricted
P 460,000
0
P 460,000
P 5,700,000
10,000
P 5,710,000
5,000,000
(5,000,000)*
P5,460,000 P
710,000
25,000
Permanently
Restricted
Total
P6,160,000
10,000
0 P6,170,000
0
0 P6,170,000
Expenses:
Operations and maintenance of plant ..........
Institutional support .............................................
Total expenses ................................................
P1,625,000
20,000
P1,645,000
P1,625,000
20,000
P1,645,000
P3,815,000
710,000
P4,525,000
*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.
840,000
1,230,000
250,000
200,000
225,000
400,000
350,000
475,000
25,000
15,000
25,000
135,000
75,000
50,000
250,000
500,000
500,000
University of Cebu
Statement of Activities
For Year Ended December 31, 20x8
Unrestricted
200,000
Temporarily Permanently
Restricted
Restricted
P 200,000
15,000
P 240,000
P 500,000
25,000
P 500,000
Total
P1,500,000
965,000
800,000
15,000
250,000
500,000
P4,055,000
25,000
P (75,000)
P
0
250,000
(250,000)
0
(50,000)
0
P(375,000)
P
0
P3,690,000 P(135,000)P
500,000 P4,055,0
Research .....................................................................
Instruction ...................................................................
Academic support....................................................
Student services.........................................................
Institutional support...................................................
Operation and maintenance of plant .................
Student aid .................................................................
Auxiliary enterprises...................................................
Total expenses ......................................................
Increase (decrease) in net assets................
Net assets, January 1, 20x8...........................................
Net assets, December 31, 20x8..................................
Problem VI
P 840,000
1,230,000
250,000
200,000
225,000
400,000
350,000
475,000
P3,970,000
P (280,000)
P
0 P
0
P(135,000) P 500,000
P 840,000
1,230,000
250,000
200,000
225,000
400,000
350,000
475,000
P3,970,000
P 85,000
675,000
P 395,000
975,000
P 840,000
4,150,000
P4,235,000
2,500,000
P3,000,000
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 .................................................................................................
395,000
840,000
3,000,000
P4,235,000
P5,365,000
255,000
625,000
85,000
75,000
300,000
1,000,000
3,025,000
P5,365,000
220,000
250,000
560,000
100,000
P1,130,000
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
d. PS
g. OO
j.
PS
b. N
c. PS
e. N
f. N
h. PS
i. OO
k.
Problem VIII
(1) Accounts Receivable ................................................................................
Patient Service Revenues...................................................................
To record billings.
1,010,000
(2) Inventory.......................................................................................................
Other Operating RevenuesUnrestricted (contributions) ..........
To record donation of drugs from doctor.
12,000
28,800
13,000
68,000
26,000
Problem IX
(1) Accounts Receivable ................................................................................
Revenues ...............................................................................................
8,500,000
3,700,000
Cash ..............................................................................................................
Contractual Adjustments ..........................................................................
Allowance for Contractual Adjustments ...............................................
Accounts Receivable .........................................................................
4,460,000
340,000
3,700,000
Cash ..............................................................................................................
Contractual Adjustments ...................................................................
250,000
90,000
1,010,000
12,000
28,800
13,000
68,000
26,000
8,500,000
3,700,000
8,500,000
250,000
90,000
(2) Net patient service revenues = P4,620,000 (P8,500,000 P3,700,000 P340,000 + P250,000
P90,000)
(3) Net cash flow from transactions with Medicare = P4,620,000 (P4,460,000 + P250,000
P90,000)
(4) Assuming the P90,000 payment back to Medicare was in settlement, the revenue account
will be closed along with the contra-revenue account Contractual Adjustments. The net
amount will appear on the financial statements.
Problem X
Unrestricted
Temporarily
Restricted
Permanently
Restricted
Total
P 714,000
P 714,000
P 23,000
15,000
4,500
P 42,500
P 756,500
Operating expenses:
Nursing services .....................................................
Professional fees ....................................................
General and administrative ................................
Depreciation expense .........................................
Interest expense ....................................................
Repairs and maintenance ..................................
Provision for uncollectibles ..................................
Total operating expenses ...............................
P 230,000
340,000
150,000
90,000
13,000
110,000
14,000
P 947,000
P 230,000
340,000
150,000
90,000
13,000
110,000
14,000
P 947,000
P(190,500)
P (190,500)
Nonoperating revenue:
Interest income......................................................
Contributions ..........................................................
Endowment income .............................................
Gains on sale of endowments............................
Total nonoperating revenue..........................
Change in net assets .................................................
Net assets, January 1, 20X9 ......................................
Net assets, December 31, 20X9 ...............................
3,000
3,000
P(187,500)
800,000
P 612,500
23,000
15,000
4,500
P 42,500
P 756,500
P 18,000
120,000
56,000
P194,000
P194,000
755,000
P949,000
P
0
0
3,000
18,000
120,000
56,000
P 197,000
0
750,000
P750,000
P
6,500
2,305,000
P2,311,500
P
P
P
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
Unrestricted
TemporarilyPermanently
Restricted Restricted
Total
P 25,000
30,000
10,000
P15,000
P15,000
P315,000
31,000
P346,000
P 65,000
P20,000
P20,000
P 25,000
30,000
10,000
20,000
P 85,000
P 5,000
P401,000
P (5,000)
P30,000
P
0
P431,000
P150,000
120,000
P150,000
120,000
51,000*
9,000
P330,000
P 71,000
38,000
P109,000
51,000
9,000
P330,000
P101,000
291,000
P392,000
P
0
P30,000
3,000
P33,000
P
0
P
0
250,000
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 .......................................................................................
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
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75
76.
77.
78.
79.
80.
b
c
d
b
a
c
b
c
d
c
b
c
b
a
b
a
b
c
c
a
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95
96.
97.
98.
99.
100.
a
a
b
a
b
d
b
a
d
b
a
a
c
d
d
d
a
c
b
b
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
b
a
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
174.
175.
176.
177.
178.
c
d
d
a
a
c
e
a
a
b
d
c
d
c
c
d
b
c
7. 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 potential donors, a portion of the costs can be allocated
to program service expenses.)
164. a (Because of the time restriction, the amount spent for playground equipment remains in temporarily restricted
net assets until depreciated. The equipment was bought at the end of the year so that no depreciation was
recorded and no reclassification was made.)
Quiz-XXII
1.
c
2.
d
3.
b
4.
e
5.
c
6.
e
7.
c
8.
c
9.
b
10. d
11. d
12. a
13. d
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
b
d
a
d
c
a
a
c
d
b
d
c
d
41.
42.
43.
44.
45.
46.
47.
48.
a
b
b
a
c
c
a
b
14.
15
16.
17.
18.
19.
20.
d
b
d
a
e
c
b
34.
35
36.
37.
38.
39.
40.
a
c
a
a
d
b
d
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 or False Statements
32. True
43. True
33. False 44. False
34. False 45. False
35. True
46. False
54.
55.
56.
57.
True
False
True
False
65.
66.
67.
68.
True
False
False
True
36.
37.
38.
39.
40.
41.
42.
True
False
False
True
True
True
False
47.
48.
49.
50.
51.
52.
53,
False
False
True
False
True
False
False
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
58.
59.
60.
61.
62.
63.
64.
False
False
True
True
True
True
True
e
a
b
b
d
d
d
a
b
a
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
69.
70.
71.
72.
73.
a
b
d
c
b
b
a
b
b
d
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
True
True
False
False
False
c
b
b
b
d
*
d
b
d
e
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
b
d
b
c
a
d
d
d
d
b
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
d
c
c
b
d
b
b
c
b
c
144.
145.
146.
147.
148.
149.
150.
151.
152.
c
c
a
**
c
a
b
b
c
148. (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.)
149. (The FASB wanted to get away from fund accounting and provide information about the private not-for-profit
organization as a whole.)