Suppose that the foundation were to prepare a statement of financial position in columnar form, one column for net asset
Posted: Thu May 19, 2022 2:07 pm
Suppose that the foundation were to prepare a statement of
financial position in columnar form, one column for net assets
without donor restrictions, and another for net assets with donor
restrictions. In which column would these receivables be reported?
Explain.
Suppose that on December 31, 2020, the foundation collected $
500,000 of the $1, 098,384 due over a five-year period. Prepare
appropriate journal entries to record the collection of the
$500,000 and to adjust the remaining balance in the receivables
account. Be sure to recognize interest on the balance of the
contributions due in over five years and one to five years (less
the discount).
Another note to the statements indicates that the foundation has
made grants to various other organizations. Some of these are
payable over a five-year period. Accordingly it adjusted its grants
payable account to take into account the time value of money and
applied a discount rate of 3 percent. However per the note, the
grants are classified as Level 3 in accordance with the fair value
hierarchy and have been valued using an income approach. What are
the different valuation techniques? What is level 3 classification?
Explain this in simple words.
financial position in columnar form, one column for net assets
without donor restrictions, and another for net assets with donor
restrictions. In which column would these receivables be reported?
Explain.
Suppose that on December 31, 2020, the foundation collected $
500,000 of the $1, 098,384 due over a five-year period. Prepare
appropriate journal entries to record the collection of the
$500,000 and to adjust the remaining balance in the receivables
account. Be sure to recognize interest on the balance of the
contributions due in over five years and one to five years (less
the discount).
Another note to the statements indicates that the foundation has
made grants to various other organizations. Some of these are
payable over a five-year period. Accordingly it adjusted its grants
payable account to take into account the time value of money and
applied a discount rate of 3 percent. However per the note, the
grants are classified as Level 3 in accordance with the fair value
hierarchy and have been valued using an income approach. What are
the different valuation techniques? What is level 3 classification?
Explain this in simple words.