Food for All (FFA)is a Non-Profit Organization That Has Grown

question 29

Essay

Food for All (FFA)is a non-profit organization that has grown to be quite large in the area.FFA operates 25 food banks in multiple locations throughout the province and has moved to a decentralized organizational structure.All of the funding is received by the head office and then each location is allocated a fixed amount of funds that can be used over the year for local expenses.Local expenses are at the discretion of the local managers.The Board has decided to change its method of accounting to keep better track of costs at these various locations and better manage the budget.The Board has decided to implement a new budgeting and encumbrance accounting system.
Required:
1.In October,20X9,FD issued a purchase order for $35,000 to have printed and delivered 100,000 pamphlets to be distributed to households over the next 6 months.In December,20X9,the pamphlets were received along with an invoice for $33,900.Prepare the journal entries to record the journal entries for October and December,20X9 using encumbrance accounting.
2.Identify when encumbrance reporting would be appropriate.Comment as to whether or not encumbrance reporting is appropriate for FFA.

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Definitions:

Acquired or Lifelong

Terms describing whether a condition or trait was developed over time (acquired) or present from birth (lifelong).

Situational or Generalized

Refers to conditions or responses that can be either specific to a particular context (situational) or widespread across various contexts (generalized).

Explicit or Implicit

Refers to information or attitudes that are fully and clearly expressed or demonstrated versus those that are not directly expressed but understood through implications.

Cognitive-behavioral

A therapeutic approach that focuses on identifying and restructuring negative thought patterns and behaviors to treat various mental health issues.