Problem #4: Not-for-Profits (50 points)

Part 1: Presented below are 15 transactions involving a not-for-profit entity. Analyze each transaction to determine its appropriate treatment. (2 points each = 30 points)

Classify each transaction as:

A Revenue without Donor Restriction

B Revenue with Donor Restriction

C Contribution Revenue without Donor Restriction

D Contribution Revenue with Donor Restriction

E Conditional Promise Not Recognized

F Donated Services Not Recognized

You may use the applicable letter to indicate your response to each item.

1.	A museum gift shop sold prints of famous paintings.
2.	At the end of the year, a donor agreed to contribute $400,000 to a local artists fund if the museum raised a matching amount in the first quarter of the upcoming year.
3.	A registered nurse volunteered 10 hours a week to a local agency for disabled persons.
4.	A donor contributed $1 million to a not-for-profit hospital for a new clinic.
5.	An NFP art association hosted its annual art exhibition for the associations major contributors and charged a fee.
6.	A donor contributed securities valued at $10 million to be permanently invested. Earnings thereon are stipulated by the donor to be used for eye research.
7.	A local computer store donated computers for childrens use at an NFP hands-on childrens museum.
8.	A local PTA received cash contributions of $2,000 to be used for its operating activities.

9.	An architect provided pro bono design services for the planned remodeling of a local museum.
10.	Volunteers worked as sales assistants in a not-for-profit hospital snack shop.
11.	A local food bank and kitchen received a state grant for the purchase of equipment.
12.	A fund raising drive generated pledges to be received in one year.
13.	A donor pledged $1,000,000 for construction of a new building, payable over five fiscal years.
14.	A donor pledged $5,000,000 to a university if it raised an additional $20,000,000 for the construction of a new campus recreation center.
15.	Investment revenue received from an endowment fund with earnings that may only be used by a local college to fund scholarships.