This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A group of citizens donate their time to construct a building to provide shelter for the homeless, ... (Read 59 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jul 5, 2018
A group of citizens donate their time to construct a building to provide shelter for the homeless, to be run by a not-for-profit entity.
 
  In this situation, what is the applicable accounting rule for recognizing the fair value of the services on the face of the financial statements?
   a. donations that take a form other than cash should not be recognized.
   b. the fair value of contributed services should not be recognized unless the services require specialized skills, are provided by individuals who have those skills, and which the entity would need to be purchased if not donated.
   c. contributed services should be recognized at the fair value of the assets they create.
   d. donations should be recognized on the face of financial statements only for cash, securities, and other tangible assets; all other donations should be described in the notes.

Question 2

A cash purchase of supplies should be recorded in the
 a. cash receipts journal
  b. purchase journal
  c. general journal
  d. cash payments journal


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Kaytorgator

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 5, 2018
Answer to Question 1

b

Answer to Question 2

d


Frost2351

  • Hero Member
  • *****
  • Posts: 557
Reply #2 on: Jul 5, 2018
Correct answers!


Kaytorgator

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jul 5, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Principles of time management Principles of time management
The Serial Reaction Time Task The Serial Reaction Time Task
Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
Farmers’ markets provide fresh, local produce to consumers Farmers’ markets provide fresh, local produce to consumers
Human Relations: The Art and Science of Building Effective Relationships Human Relations: The Art and Science of Building Effective Relationships
Video: Conjunctivitis

For a complete list of videos, visit our video library