TBS F6 - Not for Profit

Question 1

Pledges are revenues with or without donor restriction?

Answer 1

without donor restrictions

Question 2

In TBS when asking for a pledge amount look for the rev recognition policy. So usually you find the uncollatable % then you..

Answer 2

Multiply the uncollectible % with total pledges to get the uncollectible amount THEN subtract that from the total pledges to get the actual pledge to be received

Question 3

In TBS with memo in the sentence says about “board desginated” then answer would be….

Answer 3

without donor restritction designated

Question 4

In tbs Sale and Auction collections are not

Answer 4

exahcange transaction revenues(bc we did not get any money of exchanging)

Question 5

Is Intent of donating the same as pledging?

Answer 5

NO, because person can still change their mind so we DONT RECOGNIZE REVENUE

Question 6

What are conditional pledges and when do we recognize them?

Answer 6

They are pledges with certain conditions to be met first and if not met they are NOT recognized till met

Question 7

When it says “conditional pledge represents % of the total program” what do we do?

Answer 7

• Divide the total conditional pledge amount by the % to get the total program
• Then Subtract the total program amount by total cond. pledge to get the required match

Question 8

How do we recognize donations ?

Answer 8

At Fair Value

Question 9

In TBS when transaction says “is to remain intact” the net classification is ?

Answer 9

With donor restriction

Question 10

In TBS when transaction says “contingent upon” the net classification is ?

Answer 10

• not classified as net asset
• its a conditional pledge/promise so cant recognize it

Question 11

In TBS when transaction says “board designated” the net classification is ?

Answer 11

without donor restrictions

Question 12

In TBS when transaction says “current period” the net classification is ?

Answer 12

without donor restrictions

Question 13

In TBS when transaction says “future” the net classification is ?

Answer 13

with donor restriction

Question 14

A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care provider persuades the benefactor to give $200,000 to help the provider persuade the bus line that the benefactor is serious. Whats the JE?

Answer 14

• record an asset and refundable advance(because we dont know if the bus is going to accept)
• Debit Cash / Credit Refundable advance

Question 15

A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The bus company agrees to move the bus route to include the address of the new day care center. What the JE after the 200,000 was deposited?

Answer 15

• Recognize revenue with donor restrictions
• Debit: Refundable Advance 200K Debit: pledge rec. with donor restrictions 300K(reminaing amount) /Credit: Revenu with donor restrictions

Question 16

A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
What the JE after the company collects remaining 300K?

Answer 16

• Debit:Cash - with donor restriction/Credit: Pledge Rec. with donor restriciton(to remove from previous entry )

Question 17

A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care EXPENDS 150,000 on construction for new day care. What is the JE?

Answer 17

• we need to remove 150k from restriction the move it to unrestricted and take it out
• Debit: Cash -WDR/ Credit: Cash WTDR
• Debit: Construction(building) / Credit: Cash WTDR
• Debit:Satisfaction of restriction/Credit: Satisfaction of restriction