For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit's financial statements for the year ended December 31, 2019. Both net asset classifications may be affected in some transactions. If net assets are not affected by the transaction, select No entry as your answer.

Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers.

Question

Business

Liliana Contreras

19 August, 02:22

For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit's financial statements for the year ended December 31, 2019. Both net asset classifications may be affected in some transactions. If net assets are not affected by the transaction, select No entry as your answer.

Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers.

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Answers (2)

Know the Answer?

Finley Cobb · Answer 1

Finley Cobb 19 August, 02:42

0

No entry is the right answer.

Ethen Mccall · Answer 2

1) Donor A, Cash Gift with donor Restrictions net asset

2) Attorney, No Entry (volunteered no cash went out)

3) Donor B, No entry (cash not received until non_profit meets condition)

4) Cash raised, Without Donor Restrictions net asset

5) Donor C, No Entry (no effect on the Net asset)

6) Trust Fund, No Entry

Explanation:

The Question is incomplete but i have provided a complete question below

For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit's financial statements for the year ended December 31, 2019. Both net asset classifications may be affected in some transactions.

If net assets are not affected by the transaction, select No entry as your answer.

1. Donor A gave the nonprofit a cash gift of $50,000 in June 2019, telling the nonprofit the gift could not be used until 2020. (Identify the affected net asset classification (s) in the journal entries made both in June 2019 and at the start of 2020.)

2. Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers.

3. Donor B sent a letter to a nonprofit, saying she would donate $20,000 in cash to the nonprofit, to be used for any purpose the nonprofit's trustees desired, provided the nonprofit raised an equal amount of cash from other donors.

4. Regarding the previous transaction, the nonprofit raised $23,000 in cash from other donors and then notified Donor B of its success in meeting her condition for the gift.

5. Donor C donates to a local museum a work of art having a fair value of $5,000, with the understanding that the museum will sell it at auction and use the funds for its general activities.

6. Donor D advises a university that he has established an irrevocable charitable remainder trust, administered by his attorney, whereby his wife will receive income from the trust as long as she lives. At her death, the remaining trust assets will be distributed to the university as a permanent endowment. The university's actuary estimates the fair value of the university's beneficial interest to be $400,000.