F8 Flashcards
Required financial statements for not for profit
Statement if Financial Position
Statement of Activities
Statement of Cash Flows
Program services vs support
Program relates to the mission of the organization while support relates to activities everything else
Statement of Financial position for not for profit
- assets, liabilities, and net assets
- assets & liabilities classified as current or noncurrent
Statement of Activities for not for profit
- changes in total net assets
- changes in net assets without restriction
- changes in net assets with restriction
Not for profit investing activities
Investments in PP&E
Proceeds from sale of art or disbursements to purchase art
Proceeds from sale of assets
Not for profit financing activities
Proceeds from issuing bonds and shit
Repayment on borrowed shit
Receipts for contribution restricted
How to account for revenues for not for profit
Full accrual and increase in revenues is an increase in net assets without donor restriction
Conditional pledge vs unconditional
Conditional is revenue when earned where unconditional is revenue when received
Good faith deposit
It is a liability
Dr. Cash
Cr. Refundable advance
Proceeds from issuing bonds and shit
Repayment on borrowed shit
Receipts for contribution restricted
S.O.M.E
Specialized skills from donor
Otherwise needed by organization
Measurable
Easily at FV
Dr. Expense or Asset
Cr. Contributions - without restriction
Contribution without restriction but there is time restriction
Dr. Pledge Receivable - restricted
Cr. Allowance
Cr. Contributions - restricted
When collected Dr. Cash - restricted Cr. Pledge receivable - restricted Dr. Satisfaction of time restriction Cr. Cash - without restriction
Contribution with restriction
Dr. Pledge receivable - restricted
Cr. Allowance
Cr. Donor restricted support
When receivable is collected and money is spent on purpose
Dr. Reclassification
Cr. Cash - restricted
Net assets without restriction increase at the same time Dr. Cash - unrestricted Cr. Reclassification Dr. Operating expense Cr. Cash - unrestricted
Not for profit healthcare - patient revenue
Gross patient revenue (Charity care) (contractual adjustments) (policy discounts) (admin adjustments)
Not for profit healthcare - other operating revenue
- tuition from schools
- revenue from educational programs
- donated supplies and equipment
- specific purpose grants
- revenue from auxiliary activities
- cafeteria revenue
- parking fees
- gift shop revenue
- medical transcription fees
Not for profit healthcare - nonoperating revenue and support gains and losses
- interest and dividend income from investments
- gifts and bequests
- grants
- income from endowment funds
- income from board designated funds
- donates services
Not for profit contribution to give to others when there is no benefit or power
Dr. Asset
Cr. Liability
Not for profit contribution to give to others when there is no benefit but has power
Dr. Asset
Cr. Contribution
Not for profit contribution to give to others when there is benefit but no power
Dr. Asset
Cr. Contribution
Objectives of Government reporting
Timeliness
Consistency
Comparability
Government fund accounting
Modified accrual accounting
Current financial resources measurement
Proprietary fund accounting
Full accrual
Economic resources measurement focus
BAE BAE accounting
Book: budget, activity, encumbrances
Close: budget, activity, encumbrances
Whatever it was booked for, close the same about out
Sources of Government resources
Revenue: taxes from income and sales, taxes from property and real estate, and fines & penalties
Other financing sources: debt proceeds like bonds and notes and interfund transfers
Booking budget journal entries: (B)ae (B)ae accounting
Beginning of year Dr. Estimated revenue control Dr. Budgetary control deficit Cr. Appropriations control(approved spending) Cr. Budgetary control surplus
End of year Dr. Appropriations control Dr. Budgetary control surplus Cr. Estimated revenue control Cr. Budgetary control deficit
Non-exchange revenue for b(A)e b(A)e
- Nonexhange means the government just takes it
- 2011: collections (Jan - Dec) plus 2012 items outstanding (Jan - Feb) First 60 days
- derived revenues: tax like sales and income
- imposed: fines or property taxes
Property tax journal entries
Property taxes levied(issued(
Dr. Real estate taxes receivable - current
Cr. Revenues - property taxes
Cr. Allowance
Collection of property taxes
Dr. Cash
Cr. Real property taxes receivable - current
To reclass receivables to delinquent Dr. Property axes receivable-delinquent Cr. Property taxes receivable-current
To Add to allowance
Dr. Revenues-property taxes
Dr. Allowance-current
Cr. Allowance-delinquent
Expenditure J/E
Dr. Expenditure
Cr. Voucher payable
Transfers between funds
- not spending dollars
- not expenditure
- you debit other financing uses
Purchase method for expenditures
You record expenditure when purchased and record a current asset and nonspendable fund balance at year end for items not used(still on hand
Buying
Dr. expenditure
Cr. voucher payable
On hand year end
Dr. Supplies inventory
Cr. Nonspendable fund balance
Consumption method for expenditures
Record current asset when purchased and record expenditure as consumed during the period
Buying
Dr. Supplies inventory
Cr. vouchers payable
Use of item
Dr. Expenditure
Cr. Supplies inventory
Fixed asset(capital outlay) expenditure
Dr. Expenditure - capital outlay
Cr. Voucher payable/cash
Fixed assets are not depreciated
Long term debt expenditures
Are recorded in government funds as other financing sources and repayment of long term debt is expenditure
Proceeds from bond issuance
Dr. Cash
Cr. Other financing sources - bonds issued
Debt service payments
Dr. Expenditure-principle
Dr. Expenditure-interest
Cr. Cash
Other Financing: leases expenditures - lessee
J/E to record lease at beginning of year
Dr. Expenditure - capital outlay
Cr. Other financing sources
Lease payments
Dr. Expenditure-principle
Dr. Expenditure-interest
Cr. Cash
Other Financing: leases expenditures - lessor
Beginning of year
Dr. Lease receivable
Cr. Revenue
Cr. Deferred inflow of resources
Dr. interest receivable
Cr. interest revenue
Receipt at end of year
Dr. Cash
Cr. Lease receivable
Cr. Interest receivable
Lessee accounting for prop, feduc, and government wide statements
Beginning of the year
Dr. Right of use asset
Cr. Lease liability
Lease payments
Dr. Lease liability
Dr. Interest expense
Cr. Cash
Dr. Amortization
Cr. Accumulated amortization
Lessor accounting for prop, feduc, and government wide statements
Beginning of the year
Dr. Lease receivable
Cr. Deferred inflow or resources
Receipts
Dr. Cash
Cr. Interest income
Cr. lease receivable
Dr. Deferred inflows or resources
Cr. Revenue
Good faith deposits
When someone contributes on the condition that you need to match is a liability (refundable advance)
