ACCT567 Joint Activities Problem 14-4

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ACCT567 Joint Activities Problem 14-4
The Green Group’s mission is to protect the environment by increasing the portion…

SKU: ACCT 567 Joint Activities with Fund-Raising Appeal Problem 14-4 Categories: , , Tags: , ,

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ACCT567 Joint Activities Problem 14-4

ACCT567 Joint Activities Problem 14-4

with a Fund-Raising Appeal A+

Consider the following scenarios relating to activities that include a fund-raising appeal:

  1. The Green Group’s mission is to protect the environment by increasing the portion of waste recycled by the public. The group conducts a door-to-door canvass of communities that recycle a low portion of their waste. The canvassers share their knowledge about the environmental problems caused by not recycling with households, asking them to change their recycling habits. The canvassers also ask for charitable contributions to continue this work, although these canvassers have not participated in fund-raising activities before.
  2. Central University’s mission is to educate students in various academic pursuits. The political science department holds a special lecture series in which prominent world leaders speak about current events. Admission is priced at $250, which is above the $50 fair value of other lectures on campus, resulting in a $200 contribution. Invitations are sent to previous attendees and donors who have contributed significant amounts in the past.
  3. The mission of Kid’s Camp is to provide summer camps for economically disadvantaged youths. It conducts a door-to-door solicitation campaign for its camp programs by sending volunteers to homes in upper-class neighborhoods. The volunteers explain the camp’s programs and distribute leaflets explaining the organization’s mission. Solicitors say, “Although your own children most likely are not eligible to attend this camp, we ask for your financial support so that children less fortunate can have this summer camp experience.”

Required

Determine for each scenario whether its purpose, audience, and content meet the criteria described in this chapter and Chapter 13 of the AICPA, Audit and Accounting Guide, Not-For-Profit Organizations so that the joint costs can be allocated between programs and support expenses. Explain your reasons.