The Following Selected Transactions Relate to Liabilities of Chicago Glass

question 75

Essay

The following selected transactions relate to liabilities of Chicago Glass Corporation for 2018. Chicago's fiscal year ends on December 31.
1. On January 15, Chicago received $7,000 from Henry Construction toward the purchase of $66,000 of plate glass to be delivered on February 6.
2. On February 3, Chicago received $6,700 of refundable deposits relating to containers used to transport glass components.
3. On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price.
4. First quarter credit sales totaled $700,000. The state sales tax rate is 4% and the local sales tax rate is 2%.
Required:
Prepare journal entries for the above transactions.

Distinguish between the deferral method and the restricted fund method in not-for-profit accounting.

Analyze transactions and prepare journal entries for not-for-profit organizations using the deferral method.

Recognize pledges and contributions and understand their treatment in not-for-profit accounting.

Understand accounting and reporting practices for capital assets and related contributions in not-for-profit organizations.

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Definitions:

Agency's Sponsorship

The support or backing provided by an agency, either financially or in terms of resources, for a project, individual, or event.

Group Work

A collaborative effort where individuals work together towards a common goal, sharing responsibilities, and contributions.

Participatory Research

A research approach incorporating the input and active involvement of stakeholders or community members in the research process.

Community Assessment

The process of evaluating the needs, strengths, and resources of a community to identify areas for improvement or development.