Non-Profit Full Charge Bookkeeper Test

Transcription

1 Bookkeeper Test JOURNAL ENTRIES: Non-Profit Full harge Bookkeeper Test The chart of accounts for the Parish who uses the accrual basis of accounting includes the following: A. ash B. Accounts Receivable. Investment Securities. Equipment E. Accumulated epreciation F. Prepaid Expenses G. Accounts Payable H. Notes Payable I. eferred Income J. Unrestricted Net Assets K. esignated Net Assets - hapel L. Temporarily Restricted Net Assets M. Offertory N. Tuition O. ontributions - Temporarily Restricted P. Recognition of satisfaction of Temp. Rest Q. Satisfaction of Temporarily Restricted K. Various Administrative Expenses S. Fundraising Expenses T. Unrealized Appreciation (epreciation) on Securities For the monthly transactions listed below indicate by letter the accounts that should be debited and credited. 1. Weekend offertory is deposited after counts are completed. 2. The annual insurance premium for the building is paid. 3. The monthly investment report has an increase in value. 4. Bills for telephone and utilities are received not paid. 5. School equipment is purchased. The seller accepts a note. 6. A deposit is received for next year s tuition for 5 students. 7. A contribution for new parish building is received. 8. Program restrictions are meet for school salary increases. 9. The flyer for the new building campaign is paid. 10. Expired insurance is for the month is recorded. 11. The Pastor/Parish irector approves the designation of funds for the hapel 12. While reconciling the bank statement, it is discovered that a supply check for $75 was recorded in the disbursements journal as $7.50 and a correcting entry is made. 13. epreciation for equipment is recorded for the month. 14. Previously billed tuition of $500 is collected. EBIT REIT 20--1

2 Non-Profit Full harge Bookkeeper Test Would the following accounts normally have a debit or credit balance: Accounts Receivable ontributions Payroll tax expense Accounts Payable Unrestricted Net Assets Realized Gains esignated Net Assets In-Kind ontributions Line of redit Recognition of Satisfaction Of Temporarily Restricted Net Assets Annuity Payable Employer 401K match Accumulated epreciation Tuition Interest Earned eferred Income Offertory Investment in Bond Fund Maintenance Investment Fees Money Market Account ue to related party 20--1

3 Non-Profit Full harge Bookkeeper Test Match the following accounting terms with the definitions below: 1. Materiality 2. ash Basis 3. Matching 4. Accrual Basis 5. ost 6. Journal 7. Accrued Income 8. Fair Market Value 9. Prepaid Expense 10. Net Assets 11. Accrued Expenses 12. onor Restriction 13. esignation 14. Unrealized Appreciation A. An expense that has been recorded but not yet paid. B. Value of an asset, in cash that a willing buyer would pay and a willing seller would sell at arms length.. A source of original entity.. The wishes of a contributor regarding how funds given the organization are to be spent E. The principle of recording expenses in the same time period as their related revenues. F. Expenditures, which will be charged to operations in future periods. G. The organizations assets less liabilities. H. A method of accounting that records income when received and expense when paid I. Income earned but for which cash has not yet been received J. The basis that fixed assets is recorded at the time of purchase. K. A method of accounting that records revenues and expenses as they are earned or incurred. L. Internal organization reserve of funds for a specific purpose. M. A concept that permits exception to an accounting principle for insignificant items. N. An increase in value of an investment security that has not been sold

4 Non-Profit Full harge Bookkeeper Test The book of the Parish and the bank statement revealed the following information: ash account balance on books, June 30 $20,000 Outstanding checks 10,000 eposits in transit, June 30 15,000 ash balance in bank, June 30 15,450 Service charge for June 50 onor NSF checks returned by bank 400 Error made by Parish in recording a heck. Recorded in ash isbursement Journal as $1,000, but should have been $100. Bank cleared the check properly. Prepare the bank reconciliation for June 30 using the following forms: Balance per books, June 30 $ Add: educt: Adjusted balance per books $ ========== Balance per bank statement, June 30 $ Add: educt: Adjusted bank balance $ ========== 20--1

5 Bookkeeper Test JOURNAL ENTRIES: Answers to the Non-Profit Full harge Bookkeeper Test The chart of accounts for the Parish who uses the accrual basis of accounting includes the following: A. ash B. Accounts Receivable. Investment Securities. Equipment E. Accumulated epreciation F. Prepaid Expenses G. Accounts Payable H. Notes Payable I. eferred Income J. Unrestricted Net Assets K. esignated Net Assets - hapel L. Temporarily Restricted Net Assets M. Offertory N. Tuition O. ontributions - Temporarily Restricted P. Recognition of satisfaction of Temp. Rest Q. Satisfaction of Temporarily Restricted K. Various Administrative Expenses S. Fundraising Expenses T. Unrealized Appreciation (epreciation) on Securities For the monthly transactions listed below indicate by letter the accounts that should be debited and credited. EBIT REIT 1. Weekend offertory is deposited after counts are completed. A M 2. The annual insurance premium for the building is paid. F A 3. The monthly investment report has an increase in value. T 4. Bills for telephone and utilities are received not paid. R G 5. School equipment is purchased. The seller accepts a note. H 6. A deposit is received for next year s tuition for 5 students. A I 7. A contribution for new parish building is received. A O 8. Program restrictions are meet for school salary increases. Q P 9. The flyer for the new building campaign is paid. S A 10. Expired insurance is for the month is recorded. R F 11. The Pastor/Parish irector approves the designation of funds for J K the hapel 12. While reconciling the bank statement, it is discovered that a R A supply check for $75 was recorded in the disbursements journal as $7.50 and a correcting entry is made. 13. epreciation for equipment is recorded for the month. R E 14. Previously billed tuition of $500 is collected. A B 20--2

6 Answers to the Non-Profit Full harge Bookkeeper Test Would the following accounts normally have a debit or credit balance: Accounts Receivable ontributions Payroll tax expense Accounts Payable Unrestricted Net Assets Realized Gains esignated Net Assets In-Kind ontributions Line of redit Recognition of Satisfaction Of Temporarily Restricted Net Assets Annuity Payable Employer 401K match Accumulated epreciation Tuition Interest Earned eferred Income Offertory Investment in Bond Fund Maintenance Investment Fees Money Market Account ue to related party 20--2

7 Answers to the Non-Profit Full harge Bookkeeper Test Match the following accounting terms with the definitions below: M H E K J I B F G A L N 1. Materiality 2. ash Basis 3. Matching 4. Accrual Basis 5. ost 6. Journal 7. Accrued Income 8. Fair Market Value 9. Prepaid Expense 10. Net Assets 11. Accrued Expenses 12. onor Restriction 13. esignation 14. Unrealized Appreciation A. An expense that has been recorded but not yet paid. B. Value of an asset, in cash that a willing buyer would pay and a willing seller would sell at arms length.. A source of original entity.. The wishes of a contributor regarding how funds given the organization are to be spent E. The principle of recording expenses in the same time period as their related revenues. F. Expenditures, which will be charged to operations in future periods. G. The organizations assets less liabilities. H. A method of accounting that records income when received and expense when paid I. Income earned but for which cash has not yet been received J. The basis that fixed assets is recorded at the time of purchase. K. A method of accounting that records revenues and expenses as they are earned or incurred. L. Internal organization reserve of funds for a specific purpose. M. A concept that permits exception to an accounting principle for insignificant items. N. An increase in value of an investment security that has not been sold

8 Answers to the Non-Profit Full harge Bookkeeper Test The book of the Parish and the bank statement revealed the following information: ash account balance on books, June 30 $20,000 Outstanding checks 10,000 eposits in transit, June 30 15,000 ash balance in bank, June 30 15,450 Service charge for June 50 onor NSF checks returned by bank 400 Error made by Parish in recording a heck. Recorded in ash isbursement Journal as $1,000, but should have been $100. Bank cleared the check properly. Prepare the bank reconciliation for June 30 using the following forms: Balance per books, June 30 $20,000 Add: Error on heck-j 900 educt: Service harge (50) NSF heck (400) $20,450 Adjusted balance per books ========== Balance per bank statement, June 30 $15,450 Add: eposit in transit 15,000 educt: Outstanding checks (10,000) Adjusted bank balance $20,450 ========== 20--2