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 12 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?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

shelducks, genus Tadorna, are a group of large birds in the Tadorninae subfamily of the Anatidae shelducks, genus Tadorna, are a group of large birds in the Tadorninae subfamily of the Anatidae
Lateral Group of Descending Motor Tracts Lateral Group of Descending Motor Tracts
The Effect of Group Size on Relationships The Effect of Group Size on Relationships
Many hunger-relief programs work to provide food aid to needy nations Many hunger-relief programs work to provide food aid to needy nations
Disitive Time For Fish Disitive Time For Fish
Physics: Power, Energy and Time Physics: Power, Energy and Time
Video: Glycolysis - Introduction to ATP and the burning of sugar

For a complete list of videos, visit our video library