Homework Clinic
Social Science Clinic => Accounting => Topic started by: ap345 on Jul 5, 2018
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(Journal entries involving net asset reclassifications)
Prepare journal entries to record the following transactions of Parker County Outreach (PCO), a not-for-profit entity providing basic services to the poor.
Also, show the fund in which the entry is recorded. PCO uses an unrestricted current fund (UCF) and a restricted current fund (RCF). In accordance with its accounting policy, donations with either time or program restrictions are recorded in the RCF. All expenses, however, are recorded in the UCF. PCO has a December 31 year end.
a. During December, 2012, PCO conducts a fund-raising campaign. Its campaign literature states that all funds will be used in 2013 . PCO receives pledges totaling 200,000 in December. Past experience indicates it will collect only 80 of the pledges.
b. On December 15, PCO receives a 10,000 donation from Gary Harmer, who says that his donation must be used only to provide meals for the elderly poor.
c. On January 2, 2013, PCO makes journal entries to record the satisfaction of the time restriction resulting from the fund-raising campaign in transaction a.
d. During January, 2013, PCO provides meals for the poor at a cost of 8,000, partially fulfilling the program restriction contained in the Gary Harmer donation.
Question 2
The columns of the work sheet that report the adjusted balances for only revenue and expense accounts are the ___________________ _ columns.
Fill in the blank(s) with correct word
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Answer to Question 1
a. RCF
Contributions receivable 200,000
Allowance for uncollectible contributions 40,000
Temporarily restricted support - contributions 160,000
b. RCF
Cash 10,000
Temporarily restricted support - contributions 10,000
c. RCF
Temporarily restricted asset reclassification out--
satisfaction of time restrictions 160,000
Allowance for uncollectible contributions 40,000
Contributions receivable 200,000
UCF
Contributions receivable 200,000
Allowance for uncollectible contributions 40,000
Unrestricted asset reclassification in--
satisfaction of time restrictions 160,000
d. RCF
Temporarily restricted asset reclassification out--
satisfaction of program restrictions 8,000
Cash 8,000
UCF
Expenses - meals program 8,000
Unrestricted asset reclassification in--
satisfaction of program restrictions 8,000
Answer to Question 2
Income Statement