Author Question: The Turtle Island Singers receive three gifts during the year 2012: (a) 3,000, which may be used for ... (Read 43 times)

khang · **on:** Jul 5, 2018

The Turtle Island Singers receive three gifts during the year 2012: (a) 3,000, which may be used for any purpose at any time; (b) 5,000, which must be used for a special concert in a nursing home; and (c) 1,000, which may be used for any purpose,

but only in the year 2013 . When it receives the gifts, how should the entity classify them:
a. 3,000 as unrestricted revenue and 6,000 as temporarily restricted revenue
b. 4,000 as unrestricted revenue and 5,000 as temporarily restricted revenue
c. 8,000 as unrestricted revenue and 1,000 as temporarily restricted revenue
d. 9,000 as unrestricted revenue

Question 2

Ruth Richter gives a not-for-profit entity 25,000 in cash. She tells the entity that it may use the gift for particular research project but only after it receives at least 20,000 cash from other donors to help complete the project.

If the entity fails to raise the additional 20,000, it must return Ruth's gift. What account should the entity credit when it receives Ruth's gift?
a. Unrestricted support - contributions
b. Temporarily restricted support - contributions
c. Refundable advance (deferred revenue)
d. Allowance for uncollectible contributions