User Account

All Pages

What would be the impact of the donor request

Assignment Help Accounting Basics
Reference no: EM132623204

Question - The manner in which depreciation on capital assets acquired with donated funds depends on the terms of the donation.

Sea Life Aquarium, a not-for-profit entity, received a contribution of $500,000 that must be used to acquire plant and equipment. In the following year it applied the gift toward the purchase of various items of plant and equipment. Management estimates that the useful life will be 10 years (with no salvage value).

Required -

1. Prepare journal entries to record the contribution, the purchase of equipment, and first-year depreciation. Be sure to indicate the type of fund in which each entry would be made. Assume that the Aquarium adheres to current standard practice as to when resources are released from restriction.

2. Assume now that the donor specifies that the contributed resources be released from restriction by the not-for-profit over the life of the asset rather than follow current standard practice.

Prepare journal entries to record the contribution, the purchase of equipment, and first-year depreciation.

What would be the impact of the donor request on the financial statements and on availability for expenditure of cash or other organization assets?

Reference no: EM132623204

Questions Cloud

Describe ethical issue : Describe an ethical issue that you have dealt with or have the potential of dealing with in the future with more than one conflict for any decision made.
The acts under the principles of agency law : Explain whether you think the business is liable for the acts under the principles of agency law.
Described contributed services as revenue : For each of the following situations, indicate whether the organization should recognize the described contributed services as revenue
Hhow the moral intensity of the situation might influence : Identify the ethical and professional issues of concern to Beverly Wald and Ann Plotkin. Hhow the moral intensity of the situation might influence
What would be the impact of the donor request : What would be the impact of the donor request on the financial statements and on availability for expenditure of cash or other organization assets
Analyze your perceptions of each element of the conflict : What is the conflict about? When did the conflict start? What caused it? Was it a series of events or one event? What was the trigger event(s)?
How does the wbs contribute to the success of a project : Once the project schedule is finalized, what are the tools you can use to monitor the schedule? How does the WBS contribute to the success of a project?
The challenge of policing in democratic society : Compare and contrast the concepts the role of the police you consider most important today "The Role of Police in a Democratic Society,
Prepare the required journal entries : Prepare the required journal entries for 2020 and 2021 and indicate whether each entry should be made to a fund that is restricted by a donor or not

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd