Solution manual advanced accounting 2nd by hamlen CH13

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CHAPTER 13
SOLUTIONS TO MULTIPLE CHOICE QUESTIONS, EXERCISES AND PROBLEMS

MULTIPLE CHOICE QUESTIONS
1.

b

2.

c

3.

a

4.

c

5.

d

Answers to questions 1 – 5 are based on the following entries and financial statements:
Journal entries for 2013:
Cash-operations

4,500,000

Contributions—unrestricted

4,500,000

Contributions receivable

431,918
Contributions—temporarily
restricted

431,918

Contributions receivable

21,596

Contributions—temporarily
restricted
Increase in present value of pledge during 2013 = 5% x $431,918.
Cash-operations

21,596

200,000
Contributions—temporarily
restricted

Net assets released—
temporarily restricted

200,000

500,000
Net assets released—
unrestricted

Operating expenses

500,000
Cash—operations

Solutions Manual, Chapter 13

500,000

500,000

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Accounts payable
Operating expenses

50,000
4,200,000
Cash—operations

4,250,000

Operating expenses

25,000
Contributions—unrestricted

25,000

Operating expenses

850,000
Equipment & furnishings
Building

Geneva Preschool
Statement of activities for 2013
Unrestricted net
assets
Revenues and other support:
Cash contributions
$ 4,500,000
Pledges
Contributions of services
25,000
Net assets released from restrictions
500,000
_______
Total revenues and other support
5,025,000

Expenses
(5,575,000)
Change in net assets
(550,000)
Beginning net assets
3,400,000
Ending net assets
$ 2,850,000

250,000
600,000

Temporarily
restricted net assets
$

200,000
453,514

(500,000)
_______
153,514
_______
153,514
1,500,000
$ 1,653,514

Geneva Preschool
Balance sheet, December 31, 2013
Assets

Liabilities
Cash
$
50,000 Accounts payable
Contributions receivable
453,514
Equipment & furnishings, net
1,250,000 Net assets
Building, net
2,900,000 Net assets—unrestricted
________ Net assets—temporarily restricted
Total assets
$ 4,653,514 Total liabilities and net assets

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$

150,000

2,850,000
1,653,514
$ 4,653,514

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Geneva Preschool
Statement of cash flows for 2013
Cash for operating activities:
Contributions
Less operating expenses
Net cash for operating activities and change in cash
Beginning cash balance
Ending cash balance
Reconciliation of change in net assets to cash for
operating activities:
Change in net assets
Reconciliation items:
Increase in pledges
Decrease in accounts payable
Depreciation expense
Cash for operating activities

6.

$ 4,700,000
(4,750,000)
(50,000)
100,000
$
50,000

$ (396,486)
(453,514)
(50,000)
850,000

$ (50,000)

a
The securities themselves are the permanent endowment, and any changes in fair value
are adjustments to permanently restricted net assets.

7.

c
The $10,000,000 contribution is the permanent endowment, so changes in investments
using this endowment do not affect permanently restricted net assets. The donor leaves
income unrestricted, so fair value gains and losses affect unrestricted net assets.

8.

a

9.

d

10.

b

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EXERCISES
E13.1
1.
2.
3.
4.
5.
6.

Reporting Donations
UR
UR (since the services are shown as both an increase and decrease in unrestricted net
assets, the answer could be N)
N (does not meet criteria for recognizable service)
TR (there is documentation for the promise; since it is not to be received until next year,
there is an implicit time restriction)
UR
TR

E13.2

Reporting Donations

1.
Restricted cash

1,000,000

Refundable contributions
The contribution is conditional until plans for the project are more certain.

1,000,000

2.
Restricted cash

100,000
Contributions (PR)

Investment in securities

100,000
100,000

Restricted cash
Cash

100,000
5,000

Investment income (TR)
Net assets released (TR)

5,000
5,000

Net assets released (UR)

Speaker series expenses

5,000
Cash

3.

5,000

5,000

No entry; not an unconditional promise.

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4.

No entry is made at the time of the promise, since it is conditional. When the condition is
met and the money is received, the following entry is made:
Cash

100,000
Contributions (UR)

100,000

5.
Automobile

5,000
Contributions (TR)

5,000

6.
Net assets released (TR)

1,000
Net assets released (UR)

1,000

Depreciation expense (UR)

1,000
Accumulated depreciation

1,000

7.
Cash

5,000,000

Contributions (UR)
5,000,000
The Board restriction is not recognized; only donor restrictions affect the accounting for
restrictions on net assets.

E13.3

Donated Building

Journal entries in 2013:
January 1
Building

30,000,000
Contributions (TR)

December 31
Net assets released (TR)

30,000,000

1,200,000
Net assets released (UR)

Depreciation expense (UR)

1,200,000
Accumulated depreciation

Solutions Manual, Chapter 13

1,200,000

1,200,000

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Journal entries in 2014:
December 31
Net assets released (TR)

1,200,000
Net assets released (UR)

Depreciation expense (UR)

1,200,000
1,200,000

Accumulated depreciation

E13.4
a.

1,200,000

Accounting for Investments
Here the donated securities themselves are the permanent endowment.
Journal entries in 2013:
Investment in securities

350,000
Contributions (PR)

Cash

350,000
14,000

Investment income (UR)
Unrealized losses (PR)

14,000
30,000

Investment in securities

30,000

Account balances, end of 2013:
Investment in securities
Contributions
Investment income
Unrealized losses

$320,000; asset in statement of financial position

$350,000; increase in permanently restricted net assets
on statement of activities
$14,000; increase in unrestricted net assets on statement
of activities
$30,000; decrease in permanently restricted net assets on
statement of activities

Journal entries in 2014:
Cash

14,000
Investment income (UR)

Investment in securities

40,000
Unrealized gains (PR)

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14,000

40,000

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Account balances, end of 2014:
Investment in securities
Investment income
Unrealized gains

b.

$360,000; asset in statement of financial position
$14,000; increase in unrestricted net assets on statement
of activities
$40,000; increase in permanently restricted net assets on
statement of activities

Here the $350,000 cash is the permanent endowment.
Changes in journal entries in 2013:
The contribution of cash and its investment in securities is recorded as follows:
Restricted cash

350,000
Contributions (PR)

Investment in securities

350,000
350,000

Restricted cash

350,000

Recognition of the decline in value of the securities is recorded as follows:
Unrealized losses (UR)
30,000
Investment in securities
30,000
The unrealized loss is shown as a reduction in unrestricted net assets on the Statement of
Activities.
Changes in journal entries in 2014:
Recognition of the increase in value of the securities is recorded as follows:
Investment in securities
40,000
Unrealized gains (UR)
40,000
The unrealized gain is shown as an increase in unrestricted net assets on the Statement of
Activities. All unrealized gains and losses are shown as changes in unrestricted net
assets, since they are not donor-restricted.

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E13.5
Item
1.
2.
3.

4.
5.

Reporting Pledged and Restricted Contributions
Recognized?
Yes
No (1)
No (2)
Yes
No (3)

Amount
Classification
$2,700,000 Temporarily restricted

112,500 Temporarily restricted

(1) These are not unconditional promises. Although there are no stated conditions, the
respondents have not yet made a binding commitment to give.
(2) This pledge is conditioned upon occurrence of a specific uncertain future event.
(3) These gifts cannot be recognized as revenue until the new program is accredited by
AACSB. Because we don't know if the program will be accredited, the $250,000 is
recorded as a liability which may be refunded.

E13.6
1.
2.
3.
4.
5.

6.
7.
8.

E13.7
1.
2.
3.
4.
5.
6.

7.
8.

Recognition of Donations
$4,000,000; unrestricted net assets increase
$100,000; unrestricted net assets increase
$7,000; unrestricted net assets increase
$800; unrestricted net assets increase unless there is a policy of recording as temporarily
restricted
$5,000; unrestricted net assets increase
$7,000; unrestricted net assets increase and decrease
Not recorded
$1,000, unrestricted net assets increase

Effect of Transactions on Net Assets
Unrestricted net assets
No effect on net assets
No effect on net assets; dr cash, cr conference deposits (liability)

No entry
Temporarily restricted net assets
Unrestricted net assets increase and temporarily restricted net assets decrease by the
amount of the depreciation; depreciation expense is then recorded as a decrease in
unrestricted net assets
No entry
Unrestricted net assets (for fair value of texts)

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E13.8

Promises of Future Gifts

This documented pledge is recorded on July 1, 2012 at its present value of $1,104,015 (present
value of a 10-payment $150,000 ordinary annuity discounted at 6%).
7/1/12
Contributions receivable

1,104,015
Contributions (TR)

1,104,015

6/30/13
Contributions receivable

66,241

Contributions (TR)
To record interest on pledge; $66,241 = $1,104,015 x 6%.

66,241

7/1/13
Net assets released from time
restrictions – TR

150,000
Net assets released from
time restrictions – UR

150,000

Cash

150,000
Contributions receivable

150,000

6/30/14
Contributions receivable

61,215
Contributions (TR)
To record interest on pledge; $61,215 = ($1,104,015 + $66,241 - $150,000) x 6%

E13.9

61,215

Temporary Investments

Schedule of Investment Income
Dividend revenue on Alpha Corporation stock (300 x $1.50 x 4)
Dividend revenue on Beta, Inc. stock (1,000 x $.40 x 4)
Dividend revenue on Sigma Company stock (200 x $1.60 x 4)
Unrealized gains (losses):
Loss on Alpha Corporation stock ($19,700 - $21,000)
Gain on Beta, Inc. stock ($304,000 - $298,000)
Loss on Sigma Company stock ($46,800 - $49,000)
Total net investment income, gains and losses

Solutions Manual, Chapter 13

$ 1,800
1,600
1,280
(1,300)
6,000
(2,200)
$ 7,180

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E13.10
1.
2.
3.
4.
5.
6.
7.
8.

College Transactions
Increase in cash, increase in contributions (increase in temporarily restricted net assets)
This is a life income agreement; increase in cash, increase in contributions (increase in
temporarily restricted net assets)
Increase in cash, increase in contributions (increase in permanently restricted net assets)
Increase in fixed assets, decrease in cash or increase in liabilities, as appropriate.
Decrease in cash, recognition of expense as a reduction in unrestricted net assets
Decrease in cash, increase in loans receivable
Increase in cash, increase in liability to the student organizations
Decrease in fixed assets, depreciation expense is a reduction in unrestricted net assets; if
the fixed assets are temporarily restricted, there will be an additional entry to release the
amount of the depreciation from temporarily restricted net assets to unrestricted net
assets.

E13.11
1.

College Journal Entries
Assuming the pledges are supported by verifiable documentation, the following entry is
recorded:
Contributions receivable

800,000
Contribution revenue (UR)

Bad debt expense (UR)

800,000
80,000

Allowance for
uncollectible pledges

80,000

The above entries assume the pledges will be collected in the current year. If not, the
uncollected portion adds to temporarily restricted net assets.
2.
Cash

7,000
Contributions receivable

Net assets released from time

restrictions – TR

7,000

7,000
Net assets released from
time restrictions—UR

7,000

The above entry assumes the pledge was originally recorded as temporarily restricted.

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3.
Note Receivable

1,000
Cash

1,000

4.
Liability to student organizations

6,000
Cash

6,000

5.
Salaries expense (UR)

500,000
Cash

500,000

6.
Cash

100,000
Loan payable

100,000

7.
Net assets released (TR)

800
Net assets released (UR)

Scholarships paid (UR)

800
800

Cash

E13.12

800

Annuity/Life Income Transactions

a.
Cash

400,000

Annuity payable to Pauline
Doyle
155,658
Contributions—TR
244,342
To record gift of cash and related payment liability for Pauline Doyle. (Present value
factor of $1 annuity for 15 periods at 4% = 11.1184; $14,000 x 11.1184 = $155,658).
Investments

400,000
Cash

400,000

To record investment of the gift.
Cash

20,000

Investment income—TR
To record investment income for 2013; $400,000 x 5% = $20,000.
Net assets released—TR

20,000

6,226

Net assets released—UR
To record release of net assets for interest expense; $6,226 = 4% x $155,658.
Solutions Manual, Chapter 13

6,226

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Interest expense
Annuity payable to Pauline Doyle

6,226
7,774

Cash
14,000
To record interest expense on the annuity obligation and reduction of the annuity liability.
b.
Cash

400,000

Contributions—TR
To record gift of cash from Pauline Doyle.
Investments

400,000

400,000
Cash

400,000

To record investment of the gift.
Cash

20,000

Life income payable
20,000
To record income for year from investments, and corresponding obligation to Pauline
Doyle.
Life income payable

Cash
To record payment of current income to Pauline Doyle.

E13.13
1.
2.
3.
4.
5.

20,000
20,000

Critique of Statement of Activities Format
There should be no expenses listed under temporarily restricted net assets.
―Net profit‖ should be ―change in net assets‖.
Net assets released from temporarily (and in this case permanently) restricted net assets
should equal net assets released to unrestricted net assets.
Net assets cannot be released from permanently restricted net assets.
Expenses should be functionally rather than naturally classified.

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PROBLEMS

P13.1

Journal Entries and Financial Statements

a.
Restricted cash
Cash

500,000
500,000
Contributions—temporarily
restricted (TR)
Contributions—temporarily
restricted (TR)
Contributions—unrestricted
(UR)

Cash
Restricted cash
Pledges receivable
Bad debt expense (program
expenses)

500,000
250,000
250,000
860,000
30,000
40,000
10,000

Allowance for uncollectibles
Contributions—UR
Contributions—TR
Contributions—TR
Operating expenses (UR)

10,000
890,000
30,000
10,000
930,000

Accounts payable
Cash

80,000
850,000

Investments

280,000
Cash
Investment income (UR)

Net assets released from
program restrictions-temporarily
restricted

260,000

20,000

500,000
Net assets released from
program restrictionsunrestricted

Building
Equipment

2,200,000
240,000
Note payable
Restricted cash
Mortgage payable

Solutions Manual, Chapter 13

500,000

140,000
500,000
1,800,000

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b.

Southside Counseling Center
Statement of Activities
For the Year Ended December 31, 2013
Unrestricted
Revenues, gains, and other support:
Contributions—General
Contributions—Grant
Contributions—Programs
Contributions—Building fund
Investment income
Net assets released from program restrictions
Total revenues, gains and other support
Expenses:
Program services
Change in net assets
Net assets, January 1, 2013
Net assets, December 31, 2013

Temporarily
Restricted

$ 890,000
250,000
$
20,000
500,000
1,660,000

260,000

530,000
-(500,000)
290,000

940,000
720,000
-$ 720,000

-290,000
-290,000

$

Southside Counseling Center
Statement of Financial Position
December 31, 2013
Assets
Cash
Pledges receivable, net
Investments
Restricted cash
Building
Equipment
Total assets
Liabilities and net assets
Liabilities:
Accounts payable
Note payable
Mortgage payable
Net assets:

Unrestricted
Temporarily restricted
Total liabilities and net assets

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$

250,000
30,000
280,000
30,000
2,200,000
240,000
$ 3,030,000

$

80,000
140,000
1,800,000
2,020,000

720,000
290,000
1,010,000
$ 3,030,000

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P13.2

Recognition of Contributions

1.
2.
3.
4.
5.
6.

(a) Recorded?
No; intention, not documented
No; intention, not documented
No; conditional promise
Yes; unconditional portion
No; services not otherwise purchased
Yes; unconditional promise

7.

Yes; unconditional contribution

8.

Yes; unconditional contribution

9.
10.

Yes; skilled services otherwise purchased
Yes, unconditional contribution

P13.3

(b) Classification and Amount
---Unrestricted, $40,000
-Unrestricted, $15,000; temporarily
restricted, $51,977 (present value
of a 4-payment $15,000 ordinary
annuity discounted at 6%)
Temporarily restricted, $200,000;
($100,000 becomes unrestricted in
the current year when used as
donor intends)
Temporarily restricted;
$4,000,000; Net assets released
from use restriction (TR
decreases, UR increases,
$200,000; Unrestricted net assets
decrease $200,000 for
depreciation expense.
Unrestricted, $5,000
Temporarily restricted income,
$25,000; fair value of bonds,
$1,035,000 (= $1,060,000 $25,000) permanently restricted

Journal Entries and Financial Statements

a.
Cash

98,000
Dues revenue—unrestricted

Cash

98,000
180,000

Contributions revenue—
unrestricted
Cash

320,000
Grants—temporarily restricted

Solutions Manual, Chapter 13

180,000

320,000

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Expense—Tutoring programs
Expense—After-school programs
Expense—Fund-raising

250,000
340,000
15,000
Cash

605,000

Expense—Tutoring programs
Expense—After-school programs

25,000
25,000
Building, net
Equipment, net

20,000
30,000

Net assets released—temporarily
restricted

140,000
Net assets released—

unrestricted

140,000

Expense—Tutoring programs

10,000
Supplies

10,000

Dues receivable

2,000
Dues revenue—unrestricted

Net assets released—temporarily
restricted

2,000

250,000
Net assets released—
unrestricted

Accounts payable

250,000
25,000

Cash
Expense—Tutoring programs
Expense—After-school programs

30,000
50,000
Accounts payable

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25,000

80,000

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b.

Learning Circle
Statement of Activities
For the Year Ended June 30, 2013
Unrestricted
Revenues, gains, and other support:
Dues
Contributions
Grants

Net assets released from program restrictions
Total revenues, gains and other support
Expenses and losses:
Tutoring programs
After-school programs
Fund-raising
Total expenses
Change in net assets
Net assets, July 1, 2012
Net assets, June 30, 2013

Temporarily
Restricted

$ 100,000
180,000
390,000
670,000
315,000
415,000
15,000
745,000
(75,000)
729,000
$ 654,000

$ 320,000
(390,000)
(70,000)

_______
(70,000)
250,000
$ 180,000

Learning Circle
Statement of Financial Position
As of June 30, 2013
Assets
Cash
Dues receivable
Supplies
Land
Building, net
Equipment, net
Total assets

$ 18,000
6,000
20,000
150,000
510,000
210,000
$ 914,000

Liabilities and net assets
Accounts payable
Unrestricted net assets
Temporarily restricted net assets
Total liabilities and net assets

$ 80,000
654,000
180,000
$ 914,000

Solutions Manual, Chapter 13

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P13.4
a.

Presentation of Corrected Financial Statements
Correcting journal entries
1.
Pledges receivable

40,554,500

Contributions—temporarily
restricted
40,554,500
To record the documented pledge. $40,554,500 = $5,000,000 x present value of an
annuity of $1 for ten years at 4% = $5,000,000 x 8.1109.
2.

Contributions—
unrestricted

10,000,000

Pledges receivable
8,219,300
Contributions—
temporarily restricted
1,780,700
To record the increase in time value of the pledge and the collection of the first
installment. The pledge was originally recorded at $44,518,000 (=$10,000,000 x present
value of an annuity of $1 for five years at 4%; $10,000,000 x 4.4518). The increase in
time value in 2013 is $44,518,000 x 4% = $1,780,700, which is recorded as an increase in
temporarily restricted contributions.
Net assets released—
temporarily restricted

10,000,000

Net assets released—
unrestricted
10,000,000
To record net assets released from time restrictions when installment of pledge is
received.
3.
Contributions—
unrestricted

2,500,000

Refundable contributions
To reclassify conditional contributions as a liability.
4.
Cash
Assets restricted to plant
assets
To reclassify cash spent for construction.

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2,500,000

27,500,000
27,500,000

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Net assets released—
temporarily restricted
31,500,000
Net assets released—
unrestricted
31,500,000
To record net assets released from use restrictions; $31,500,000 = $27,500,000 +
$4,000,000.

5.
Expenses—administrative
Land, buildings and
equipment, net

500,000
10,000,000

Contributions of
services—unrestricted
To record donations of specialized and nonfinancial services.
6.
Investments
Investment gains—
temporarily restricted
To record restricted unrealized gains on investments.

Solutions Manual, Chapter 13

10,500,000

2,500,000
2,500,000

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b.

Corrected financial statements
The Chicago Museum
Statement of Activities
For the Year Ended June 30, 2013
Unrestricted
net assets
Revenues and gains:
Contributions—cash and pledges
Contributions—services
Investment gains
Net assets released from time restrictions
Net assets released from use restrictions
Total revenues and gains

$ 47,500,000
10,500,000
300,000
10,000,000
31,500,000
99,800,000

Expenses and losses:
Expenses—exhibitions and programs
Expenses—membership and development
Expenses—administrative
Expenses—building operations
Total expenses and losses
Change in net assets

Net assets, beginning
Net assets, ending

39,000,000
1,000,000
8,500,000
14,000,000
62,500,000
37,300,000
17,600,000
$ 54,900,000

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Temporarily
restricted
net assets
$ 87,035,200
2,500,000
(10,000,000)
(31,500,000)
48,035,200

_________
48,035,200
35,000,000
$ 83,035,200

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The Chicago Museum
Statement of Financial Position
June 30, 2013
Assets
Cash
Pledges receivable, net
Supplies
Assets restricted to investment in plant assets
Land, buildings, and equipment, net
Investments
Total assets

$ 30,300,000
85,335,200
4,500,000
12,500,000
75,000,000
15,000,000
$222,635,200

Liabilities and Net Assets
Liabilities:
Accounts payable
Refundable contributions
Notes payable
Net assets:

Unrestricted net assets
Temporarily restricted net assets
Total liabilities and net assets

P13.5

$

2,200,000
2,500,000
80,000,000

54,900,000
83,035,200
$222,635,200

Hospital Transactions

(1)
Cash
Accounts receivable

66,000,000
49,500,000
Patient service revenue—
unrestricted
Auxiliary revenue—
unrestricted

(2)

Patient service revenue
adjustments
Patient service revenue

113,500,000
2,000,000

2,100,000
1,600,000

Accounts receivable
3,700,000
The adjustments account is contra to the patient service revenue account; the charitable services
are not recorded.
Bad debt expense

1,135,000

Allowance for uncollectible
accounts
1,135,000
$1,135,000 = 1% x ($60,000,000 + $30,000,000 + $15,000,000 + $2,500,000 + $6,000,000).

Solutions Manual, Chapter 13

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Allowance for
uncollectible accounts

800,000
Accounts receivable

(3)
Supplies Inventory

800,000

7,100,000
Cash
Accounts payable
Contributions revenue—
unrestricted

Equipment

2,550,000
2,550,000
2,000,000
6,000,000

Contributions revenue—
unrestricted
(4)
Nursing services expense
General health care

services expense
Professional services
expense
Auxiliary services
expense

6,000,000

5,500,000
4,800,000
4,100,000
4,300,000
Supplies inventory
Cash
Salaries and wages payable
Accounts payable

(5)
Cash

5,400,000
11,100,000
1,000,000
1,200,000

4,000,000
Contributions—temporarily
restricted

Net assets released—

temporarily restricted

4,000,000

1,800,000
Net assets released—
unrestricted

Research prog. expense

1,800,000
1,800,000

Cash
Investments

1,800,000
2,000,000

Cash
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2,000,000

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Cash

300,000
Investment income—
temporarily restricted

(6)
Marketable securities

300,000

20,000,000
Contributions—permanently
restricted

Cash

20,000,000
1,600,000

Investment income—
temporarily restricted
Investment income—
unrestricted
Net assets released—
temporarily restricted

1,200,000
400,000

1,000,000
Net assets released—
unrestricted

Research program
expense

1,000,000

1,000,000
Cash

(7)
Restricted cash

1,000,000

15,000,000
Contributions revenue—
temporarily restricted

Net assets released –
temporarily restricted

15,000,000

15,000,000
Net assets released—
unrestricted

Equipment

15,000,000
40,000,000

Restricted cash
Loan payable

Cash

2,500,000
Equipment (net)
Gain on sale—unrestricted

Solutions Manual, Chapter 13

15,000,000
25,000,000

2,000,000
500,000

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P13.6

Hospital Statement of Activities
Montclair Hospital
Statement of Activities
For the Year Ended December 31, 2014
Unrestricted

Revenue, gains and other support:
Gross patient service revenue
Less: contractual discounts
Net patient service revenue
Other revenue:
Donated supplies
Educational program fees
Cafeteria/gift shop sales
Gift--cholesterol testing
Unrestricted bequest
Income from trust fund
Net assets released from restrictions:
Satisfaction of program restrictions
Total revenue, gains and other support
Expenses and losses:
Expenses:
Professional patient care
General services
Nursing services
Administrative services
Bad debt expense
Total expenses
Losses: Unrealized loss on donated stock
Total expenses and losses

Change in net assets

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Temporarily
Restricted

$65,000,000
(5,000,000)
60,000,000
800,000
500,000
1,320,000
$ 1,000,000
1,500,000
100,000
3,800,000
68,020,000

(3,800,000)
(2,800,000)

33,000,000
9,500,000
10,000,000
3,500,000
3,000,000
59,000,000
230,000

59,230,000
$ 8,790,000

_________
$(2,800,000)

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P13.7

Transactions and Financial Statements

Journal entries (not required):
Cash

550,000
Contributions revenue—
temporarily restricted
Contributions revenue—
unrestricted

350,000
200,000

Contributions receivable

375,000

Allowance for uncollectibles
Contributions revenue—
temporarily restricted

112,500
262,500

Marketable securities

200,000
Contributions revenue—
permanently restricted

200,000

Cash

12,000
Investment income—
unrestricted

12,000

Marketable securities

15,000
Unrealized gains—permanently
restricted

Net assets released—

temporarily restricted

15,000

365,000
Net assets released—
unrestricted

General service expenses
Program service expenses
Fund-raising expenses

365,000
25,000
490,000
65,000

Cash
General service expenses

580,000
8,000

Contributions of services—
unrestricted
Building

35,000
Contributions of services—
unrestricted

Solutions Manual, Chapter 13

8,000

35,000

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