Question
Julienne Organization is a not-for-profit organization set up for cancer research.It uses fund accounting and has 3 funds: a general fund, a capital fund(through which
Julienne Organization is a not-for-profit organization set up for cancer research.It uses fund accounting and has 3 funds: a general fund, a capital fund(through which it is raising cash to support the purchase of a new research laboratory) and, an endowment fund.Julienne has been operating for 25 years and has a March 31 year end.Julienne's policy with respect to capital assets is to capitalize and amortize the capital assets over their expected useful lives.
On April 1,2020, Julienne received $500,00 to cash and a pledge for an additional $100,000 from a local businesswoman who placed the following restrictions on the use of the funds:
- $50,000 cash to pay the annual salary of a new research assistant
- $100,000 cash and $100,000 pledge to be used solely for construction of the new research laboratory.The $100,000 pledge is to be paid on April 1,2021.Construction of the laboratory is expected to commence in October 20120, and is expected to take 1 year to complete.
- $350,000 cash to be permanently invested in long-term Government of Canada bonds.The interest on the bonds is not restricted and can be used for daily operations.The $350,000 was immediately invested in government bonds with 6% interest to be paid semi-annually on October 1 and April 1.
Required:-If Julienne uses the restricted fund method of accounting, indicate how much revenue, if any should be recognized for the year ended March 31, 2020 in each of the funds
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