preparation of journal entries
Part A
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The Austin Street Shelter Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization’s only program. It is the policy of the community kitchen to use temporarily restricted resources for which the purpose has been met before unrestricted resources. The Kitchen had the following revenue and expense transactions during the 2017 fiscal year. |
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1. |
Unrestricted cash donations of $25,000 were received. A local sports owner contributed $3,000, which was to be used for the purchase of Thanksgiving dinner foodstuffs. |
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2. |
A local grocery store provided fresh produce with a fair value of $100. The produce was immediately used. |
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3. |
Student volunteers from UMUC contributed 100 hours to preparation and serving of meals. The estimated fair value of their labor was $750. |
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4. |
The Kitchen received a $5,000 federal grant for the purchase of institutional kitchen appliances. |
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5. |
At Thanksgiving time, the Kitchen spent $4,100 on foodstuffs for preparation of the Thanksgiving dinner. |
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Required |
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Prepare any needed journal entries to record these transactions. |
Part B
Which of the following requires a journal entry?
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1. |
Volunteers worked as sales assistants in a not-for-profit hospital snack shop. |
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2. |
An architect provided pro bono design services for the planned remodeling of a local museum. |
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3. |
A member of a church volunteered to repaint the church’s activities room to make it more attractive. Church leaders had not planned to repaint the room. |
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4. |
Several local persons used their cars to deliver meals to senior citizens for Meals on Wheels. |
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5. |
A psychiatrist volunteered several hours each week at a not-for-profit counseling center to assist persons with alcohol and drug addiction. |
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6. |
A local CPA firm performed the regular annual financial statement audit for the university’s chapter of Beta Alpha Psi. |
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7. |
A local pastor donated several hours weekly to the local food bank run by an NFP. |
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8. |
A registered dietitian donates several hours each summer providing dietary instruction to children with diabetes who are attending a camp sponsored by the local chapter of the American Diabetes Association |
