NFT Organizations

Question 1

How is a typical Pledge to a NFP recorded?

Answer 1

Pledges Receivable 700,000
Allowance for Uncollectible Receivables 35,000
Contribution Revenue (Plug) 665,000

Question 2

How do you record an “Exchange Transaction” and a “Contribution” in a single JE?

Answer 2

Cash 50,000
Ticket Sales Revenue 2,500
Contribution Revenue 47,500

Question 3

How do you record a Pledge that includes And allowance for Uncollectible Pledges and also Temporarily Restricted Pledges?

Answer 3

Pledges Receivable 300,000
Allowance for Uncollectible Pledges 30,000
Revenue, Unrestricted 170,000
Revenue, Temporarily Restricted 100,000

Question 4

How do you record a “Conditional Donation?”

Answer 4

Cash                                           8,000
        Unearned Contribution (Liability)     8,000

Question 5

How do you record “Donor Imposed Permanent Restricted Endowments?”

Answer 5

Cash (Restricted for Endowment) 1,000,000
Perm. Restricted Support-
Contributions Revenue 1,000,000

Question 6

How do you record “Donor Imposed Temporary Restricted Endowments?”

Answer 6

Cash 5,000

Temp. Restricted Support -

Question 7

How to record “Meeting” Temporary Restricted Net Assets with JE:

Answer 7

1. Expense-(Unrestricted Net Assets) 20,000
   Cash 20,000
2. Reclassifications Out - Temp. 20,000
   Restricted Net Assets
   Reclassifications In - Unrestricted 20,000
   Net Assets

Question 8

How do you record Donated Assets Other than Cash?

Answer 8

Example: $500 in Office Supplies are donated: (Record at FMV at Date of Gift)

Inventory of Supplies 500
Unrestricted Support -
Donated Supplies 500

Question 9

How do you record an “Implied Time Restriction?”

Answer 9

We always pick up the Donations at FMV which is $200,000 in this case, so:

Land 50,000
Building 150.000
Temporarily Restricted Support-
Donated Land & Building 200,000

Question 10

When recording “Depreciation Expense” we also reclassify Temporary Restricted NA’s to Unrestricted NA’s: Still under the Implied Time Restriction of Net Assets:

Answer 10

Reclassification Out - Temp. 7,500
Restricted Net Assets
Reclassification In -
Unrestricted Net Assets 7,500

Question 11

Government Hospitals classify revenues into 3 broad categories which are:

Answer 11

1. Patient Service Revenue
2. Premium Fees
3. Other Revenue (includes Educational Programs)

Question 12

Government Hospitals (Under GASB) record “Unrestricted Gifts as?

Answer 12

Non-Operating Gains in the General Fund

Question 13

Under a Non-Government Hospital or NFP Hospital, “Unrestricted Gifts” under FASB are recorded as?

Answer 13

Contribution Revenue or Revenues from Contributions

FASB