Reference no: EM132949049

Problem 1: A private not-for-profit entity has the following activities performed by volunteers who work at no charge. In which case should no contribution be reported?

Multiple Choice

Option 1: A carpenter builds a porch on the back of one building so that patients can sit outside.
Option 2: An accountant does the organization's financial reporting.
Option 3: A local librarian comes each day to read the newspaper to the patients.
Option 4: A computer expert repairs the organization's computer.

Problem 2: A private not-for-profit entity receives a gift of new furniture from a retail department store. The furniture has a fair value of $2,100. The entity holds the furniture for several weeks. After a flood, the entity gives the furniture to several needy families. How should the NFP entity record these conveyances?

Multiple Choice

Option 1: No entries are required.
Option 2: Record contribution revenue of $2,100 and community assistance expense of $2,100.
Option 3: Record only a community assistance expense of $2,100.
Option 4: Record only a contributed revenue of $2,100.