Codification

3431 words 14 pages
Show More
Tenzin Sonam
Acct 5102 W
Codification Research System Written Assignment

Engagement Letter for Accounting Services:
February 19th, 2015
This letter is meant to state the responsibility of services that will be provided to your organization, City of Lakes, a public non-profit:
The services provided to your organization consist of a Summary of General Accepted Accounting Procedures (GAAP). This will outline the basic principles of GAAP that relates to public non-profits and how it may differ from for-profit businesses. Following, will be a basic overview of Accounting Practices that will help the reader gain insight of basic accounting principles. The goal of the section is to enable the individual to utilize the foundation when working …show more content…

Both of these restrictions (purpose and time) result in recording the contribution as temporarily restricted- unlike the earlier journal entry when it was unrestricted (FASB ASC 958-605-25-2). A debit to cash in recorded at $4,000, and a credit to temporarily restricted contributions is noted at $4,000. On January 1st 2002, City of Lakes will have the opportunity to turn the last $1,000 contribution from temporarily restricted to unrestricted contribution. To illustrate this example, a debit will be made to “Temporary Restricted Contribution of $1,000, and a credit will result of $1000 in the “Unrestricted Contribution Asset”. This enables the City of Lakes to utilize the contribution for any purpose since it has fulfilled the passage of time.

Entry 3: When a contribution is made with a condition, such as the case when Warren giving the City of Lakes $5,000 to start a new chess program, the fund is noted as a temporary restricted contribution. When such a program is started, and becomes an integral part of the organization’s mission, it can be considered a program service (FASB ASC 958-205-45-6). This in essence would result in a program service expense. The first journal entry would be to report the cash coming into the organization as a debit to “Cash” for $5,000, and a credit to “Temporary Restricted Contribution” of $5,000. To show the journal entry when the program is to

Related

  • Burying the Hatchet
    1076 words | 5 pages

    Application of Codification Taking FASB Codification 450-20-55-10 and 450-20-25-2 into account, we have assessed that the cause of action for litigation has already occurred in a prior period, that the outcome is already unfavorable since a multimillion-dollar settlement has been reached, and the reasonable estimates of loss have been determined. As FASB Codification 450-20-55-10 and 450-20-25-2 are applied, the full $30 million from the First….

    Show More
  • Case Analysis
    3274 words | 14 pages

    Intermediate Accounting A Series of Revenue Recognition Research Cases Using the Codification Case One: Consumer Cleaning Products Corporation (CCPC) Case Two: Landline Corporation Case Three: Assembly Lines Incorporated (ALI) Submitted By Chen Chongxiao Sweta Shah Xiaoyun zhang Case One….

    Show More
  • Determining the Accounting for Receivables from Officers and Directors.
    1056 words | 5 pages

    Memorandum to file Date: From: Re: Determining the Accounting for Receivables from Officers and Directors. Facts Philadelphia Communications Inc. (“Philly”) is a public company that completed an initial public offering (IPO) a few months ago. John Sigar is the current CEO and member of the board of directors. He is the only family member involved in the business and owns significant amount of the company’s stock. While, we were doing audit testing for accounts receivable we came across….

    Show More
  • Relationship of Centralization to Other Structural Properties
    2065 words | 9 pages

    Relationship of Centralization to Other Structural Properties The specific topic of the article is to examine two different ways of distribution of power in an organization and computing the relationship between the three main structural properties of the organization which includes formalization, complexity and centralization. The authors have done extensive research on sixteen welfare and health organizations….

    Show More
  • Nearly There Case
    2116 words | 9 pages

    Nearly There Economic Characteristics/Accounting Issues Nearly There designs, develops, manufactures and sells various navigation products and services. They are a public company registered with the SEC and their common stock trades on the stock exchange. The Company is well capitalized with a $100 million market capitalization for its common stock. Due to R&D expenses and slumping sales, Nearly There is in the need of additional capital. The Company's solution was to issue 5 million shares….

    Show More
  • HEARTS R US
    1464 words | 6 pages

    Case 13-3: Summary: This case is about a company named Hearts ‘R Us. This company provides research and development for medical devices. According to the information provided the company is in its early stage and has no products in the market. They have developed a Heart Valve System that would be revolutionary in the market if is approved. Also there’s another company called Bionic Body that is a biological medical device company, they have another product that would work well with this new….

    Show More
  • Roman Influence on Byzantine Empire and Islamic Societies
    1593 words | 7 pages

    building projects, battle tactics, and his codification of Roman law. “We have attempted the most thorough amendment of the entire law, to collect and revise the whole body of Roman jurisprudence, and to assemble in one book the scattered treatises of so many authors,” Justinian writes, reflecting upon his work. The Justinian code was essentially a collection of scattered Roman documents on law, treaties, and other diverse legal matters. This codification was used as the basic system of law in the….

    Show More
  • Case 1.10 Gemstar-Tv Guide International, Inc.
    2259 words | 10 pages

    recognition within the software industry has been a complex and controversial issue since the inception of that industry during the latter part of the twentieth century. The FASB addressed that issue at length in Statement of Position 97-2 (pre-codification GAAP), which was released in October 1997. A more general discussion of revenue recognition can be found in the SEC’s Staff Accounting Bulletin No. 101 that was issued in December 1999. SOP 97-2….

    Show More
  • Acct540 Week 7 Case Study
    1027 words | 5 pages

    system. Thomas Food will know what they are paying and from there decide on resell price. Thomas Foods will show large gains if prices are hiked up due to weather fluctuations and fuel hikes. AUTHORITIES ON HEDGE ACCOUNTING: According to the Codification System there is a hedging strategy that is derived from weather fluctuations (Derivatives and Hedging - Weather Derivatives - Implementation Guidance and Illustrations, 2013). However, to account for such a strategy would best be implemented by….

    Show More
  • case 12-3
    1831 words | 8 pages

    unasserted claim or assessment if there has been no manifestation by a potential claimant of an awareness of a possible claim or assessment”. As there is no law or regulation that requires a cleanup in Dirty Country, disclosure is not required by the Codification. Scenario 3 Fact: A number of changes to the income tax system are introduced by the government and Energy, or the Company, will have to retrain its administrative and sales workforce to ensure compliance with new system. No retraining….

    Show More

Popular Essays