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Question 18
A not-for-profit voluntary health and welfare organization received a
$500,000 permanent endowment. The donor stipulated that the income
must be used for a mental health program. The endowment fund
reported $60,000 net decrease in market value and $30,000 investment
income.The organization spent $45,000 on the mental health program
during the year. What amount of change in temporarily restricted net
assets should the organization report?
Question 19
A not-for-profit voluntary health and welfare organization received a
$500,000 permanent endowment. The donor stipulated that the income
must be used for a mental health program. The endowment fund
reported $60,000 net decrease in market value and $30,000 investment
income. The organization spent $45,000 on the mental health program
during the year. What amount of change in temporarily restricted net
assets should the organization report?
Question 20
Lema Fund, a voluntary welfare organization funded by contributions
from the general public, received unrestricted pledges of $200,000
during 2005. It was estimated that 10% of these pledges would be
uncollectible. By the end of 2005, $130,000 of the pledges had been
collected. It was expected that $50,000 more would be collected in 2006
and that the balance of $20,000 would be written off as uncollectible.
What amount should Lema include under public support in 2005 for net
contributions?
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