Record Journal entry for following statement

1.On December 1, Year 1, Mr. Smith promises to give $10,000 to Charity X to be used to fund its program of research into malaria. (The pledge is considered collectible.) (3 points

2.On January 30, Year 2, Charity X spends the $10,000 on malaria research, in accordance with Mr. Smiths wishes. (Hint you need an entry to record the expense, and another entry to transfer fund balances). (6 points)

3.During Year 1, an attorney donates some of her time to charity X to help it prepare and file various legal documents related to its compliance with local laws. The lawyer would normally have charged $2,000 for this time, but does not charge Charity X anything. (3 points)

True/False

1. Nonprofit museums never show the value of their art collections on their balance sheets.
2. True or false: In determining a transaction price, a nonprofit hospital would reduce because of contractual adjustments and because of an expected level of bad debts.

1. A hospital has a set fee for an emergency room visit of $400. However, the hospital has agreed to treat patients covered by Medicaid for $50. If patients come in who are covered by Medicaid, the financial statements, under both old rules and the FASBs revenue recognition rules, would show revenues of:
   1. $50
   2. $400, with an expense of $350 under program expenses
   3. $400, with a bad debt expense of $350
2. Nonprofit B, a hospital, has 100 nurses, and 6 nurse supervisors. The nurse supervisors make sure the nurses are doing their jobs, help with complicated cases, and also sign the time sheets for the nurses. The nurse supervisors salary should be classified as
   1. Program expense
   2. Administrative and general expense
   3. Fundraising Expense
   4. Part program expense and part administrative and general expense
3. There are several areas where the FASB has decided special accounting rules are needed for nonprofit organizations. Which of the following is NOT an area with special rules?
   1. Classification of expenses into categories.
   2. When to recognize donations
   3. Combinations of nonprofit organizations, by merger or acquisition
   4. Accounting for leases