Minor difference in the terms of a contribution may justify

Assignment Help Accounting Basics

Reference no: EM13576564

Minor difference in the terms of a contribution may justify major differences in revenue recognition.upon meeting with the executive director of the crime victims advocacy group, the president of a private foundation agreed to contribute, in the following year, $100,000 in support of the group's proposed program to provide legal assistance to victims of violent crimes. suppose that the foundation's formal letter acknowledging its pledge was worded in three different ways:

a. "We are pleased to pledge $100,000 in support of your group's efforts to assist victims of violent crimes."
b. "We are pleased to pledge $100,000 in support of your group's efforts to develop a new program to provide legal assistance to victims of violent crimes."
c. "We are pleased to pledge $100,000 upon your developing a new program to provide legal assistance to victims of violent crimes."
for each of the three options: 1. prepare the journal entries that should be made upon receipt of the letter from the foundation. assume that it was unlikely that the pledge would be fulfilled in the same period that that it was made.
2. prepare the journal entries that should be made to record the expenditure of $100,000 on activities related to the legal assistaance program.
3. prepare the jppurnal entries that should be made upon receipt of the $100,000 check, assuming that it was received shortly after the legal assistance program was established and the group spent the $100,000 om program-related activities.
4. comment on why minor difference in wording might justify major difference in accounting.
be sure to indicate the type of fund in which your entries would be made.

Reference no: EM13576564

Questions Cloud

Payton co sold equipment to its subsidiary starker corp for : payton co. sold equipment to its subsidiary starker corp. for 115000.the equipment had cost 125000 and the balance in

Major instrument inc manufactures two products missile : major instrument inc. manufactures two products missile range instruments and space pressure gauges. during april 47

Find the probability that the one-year return of this stock : suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 5 and a

Explain the characteristics of statistics what are the : q1. a. explain the characteristics of statistics.b. what are the components of statistics? give a brief description of

Minor difference in the terms of a contribution may justify : minor difference in the terms of a contribution may justify major differences in revenue recognition.upon meeting with

Prepare journal entries as of january 12 to record the : prepare journal entries as of january 12 to record the payroll and the payroll taxes for the week ending january 8.

Archware systems has total assets of 35594 billion total : archware systems has total assets of 35.594 billion total debt of 9.678 billion and net sales of 23.370 billion. their

During the current year karen sells her entire interest in : during the current year karen sells her entire interest in central corporation common stock for 22000. she is the sole

Checking account balance at bank 45140 money market balance : 1.checking account balance 936120 certificate of deposit 1427800 cash advance to subsidiary of 987220 utility deposit

User Account

All Pages