16-1
1.
2.
3.
4.
5.
b
b
b
c
d
6.
7.
8.
9.
d
a
a
c
To Exercise record satisfaction of restrictions
on restricted resources.
4.
No entry until the pledges become
unconditional.
Exercise 16-5
Exercise 16-3
(a)
1.
1.
Pledges Receivable.............................
250,000
Cash....................................................
1,250,000
Allowance for Uncollectible
Pledges
....................................................
50,000
Temporarily Restricted Support
Contributions*............................................
700,000
Unrestricted
Support
Contributions..................................................
750,000
To record pledges and collections of
pledges.
*The uncollected pledges receivable
have an implied time restriction.
Cash....................................................
300,000
Permanently Restricted Support
Contributions..............................................
300,000
To record permanent endowment gift.
Equipment
30,000
Cash
30,000
To record purchase of equipment.
2.
ExpensesDepreciation
12,000
Accumulated
Depreciation
Equipment
12,000
To record depreciation.
3.
Cash
20,000
Accumulated
Depreciation
Equipment
12,000
Equipment
30,000
Unrestricted on Gain Sale of
Equipment
2,000
To record sale of equipment.
2.
ExpensesProgram X
222,000
Cash/Payables/Etc.
222,000
To record expenses for specified
program.
(b)
The depreciation expense decreases
unrestricted net assets by $12,000 and
the gain on the equipment sale
increases unrestricted net assets by
$2,000.
3a.
3b.
Reclassifications Out
222,000
Reclassifications In
222,000
Exercise 16-6
1.
Pledges Receivable
1,000,000
Allowance for Uncollectible
Pledges
150,000
Temporarily Restricted Support
Contributions
850,000
To record pledges expected to be
collected after
year end.
Even if the pledges are unrestricted they are
reported as temporarily restricted unless the
donors specify that the pledge is intended to
cover current year costs.
Uncollected
pledges have an implied time restriction
according to the FASB.
2.
Cash
3,000,000
Temporarily Restricted Support
Contributions
3,000,000
To record temporarily restricted
contributions.
3a.
3b.
ExpensesKiller
2,200,000
Cash
2,200,000
Bee
Research
Reclassifications Out
2,200,000
Reclassifications In
2,200,000
To record satisfaction of temporary
use restrictions.