Leah Pasternak

Government & Not for Profit ACC410

Chapter 13: Special Issues for Not-for-Profit Health Care Providers and Institutions of Higher
Education- Homework Submission

13-2

1. C
2. D
3. C
4. D
5. A
6. B
7. B
8. D
9. D
10. A

13-4

Fund Types Permanently Unrestrict. Temporarily Restrict. Unrestrict.
Funds Funds Funds
Current funds:
Designated 20,445

Restricted 28,114

Student loan funds 23,640

Endowment
and Similar funds:
Unrestricted quasi 59,644
endowment funds

Restricted endow- 68,352
ment funds

Other endowment 369,399
funds

Life income funds 17,012

Plant funds:
Unexpended 19,452

Retirement of in- 6,306
debtedness
Net investment in 115,089

Total fund balances 537,987 169,954 19,452
plant

13-5

13-7

1. Loan funds $75,000
Contributions $75,000

2.Student loans receivable $180,000
Uncollectibles A/R 20,000
Cash $200,000

3. Cash $9,000
Interest & Dividends $9,000

4. Cash $180,000
Student loans receivable $140,000
Interest 40,000

5. Uncollectible A/R $20,000
Cash $20,000

13-11

1a. assuming K-University is a private not-for-profit university:

Pledges receivables $200,000
Revenue from contribution $200,000

Resources released from restrictions $150,000
Cash $150,000

Production expenses $150,000
Resources released from restrictions $150,000

b. assuming K-University only engages in business types activities:

Pledges receivable $200,000
Revenue from contribution $200,000

Production expenses $150,000
Cash $150,000

2. Reporting cash flows is different between public and private because the GASB mandates that
Governments use the direct method as opposed to the indirect method. The FASB does encourage
business and not-for-profits to utilize the direct method. That being said, there is only one journal entry
for the expenditure when it comes to a private or business type entity.