The Following Are Selected Transactions for HELP-ON-US (HOU), an NFPO

question 57

Essay

The following are selected transactions for HELP-ON-US (HOU), an NFPO for 2020. HOU uses the restricted fund method of accounting for contributions. HOU has an operating fund, a capital fund and an endowment fund.
On January 1, the organization purchased fixed assets at a cost of $10,000. The assets were estimated to have a useful life of 5 years with no residual value. Straight-line amortization is used.
Prepare journal entries for these transactions, assuming HOU is using the deferral method for the $11,000 restricted contribution made on January 1, 2020 that was used to acquire the fixed assets. Indicate the fund or funds used.

Analyze investment problems involving exponential growth.

Determine the nature of solutions using the discriminant.

Apply quadratic equations to practical problems, including geometry and optimization.

Solve quadratic equations represented in different forms (general, vertex, etc.).

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Definitions:

Postretirement Benefit Plans

Plans offered by employers that provide benefits, such as health insurance and pensions, to employees after they retire.

Pension Plans

Retirement plans funded by employers or individuals, where savings are invested to provide future benefits to retirees.

Plan Sponsor's Balance Sheet

A financial statement that shows the financial condition of an entity that sponsors a retirement plan, including assets, liabilities, and net worth.

Accumulated Postretirement Benefit Obligation

The estimated total future postretirement benefits that a company is expected to pay, recognized as a liability.