LaTonia Williamson Week 8

LaTonia Williamson - LaTonia Williamson Week 8 12-4 1 A journal entry is needed from Financial Accounting Statement(FAS 116 because these are

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LaTonia Williamson Week 8 12-4 1. A journal entry is needed from Financial Accounting Statement (FAS) 116 because these are specialty services that would need to be purchased if they were not donated. DR Advertising $1000 CR Contribution Revenue $1000 2. A journal entry does not need to be prepared. These are people donating their time and are of a non specialized service. 3. A journal entry is needed from Financial Accounting Statement (FAS) 116 because these are specialty services that would need to be purchased if they were not donated. 4 hours a week X 60 per hour X 52 weeks a year = $12,480 DR Accounting Services $12,480 CR Contribution Revenue $12,480 4. A journal entry is needed from Financial Accounting Statement (FAS) 116 because these are specialty services that would need to be purchased if they were not donated. DR Baseball Park (asset) $1,400 CR Contribution Revenue $1,400 12-6 2. General rule: With regard to donated services, the FASB mandated calculating value "if the services received (a) create or enhance non-financial assets; or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation." Statement No. 116 also cited "accountants, architects, carpenters, doctors,
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This note was uploaded on 08/17/2011 for the course ACCT 410 taught by Professor Khalib during the Spring '11 term at Strayer.

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LaTonia Williamson - LaTonia Williamson Week 8 12-4 1 A journal entry is needed from Financial Accounting Statement(FAS 116 because these are

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