NOT-FOR-PROFIT ORGANIZATION_8721

1. Only the P500,000 revenues from gift shop since non were spent in 2020. The P100,000
was released from temporarily restricted classification and was reclassified to
unrestricted but was spent also as an expense in 2020.

2. The P150,000 proceeds from sales of hospital gift shop and snack bar and the P50,000
dividend income not restricted by the donor are classified as other revenue and gains of
a hospital other than its patient service revenue which is unrestricted. The P300,000
cash contributions received from donors is classified as restricted as to purpose.

3. Only the P14,000 class cancellation refunds will be deducted from the P600,000 gross
tuition to arrive at the unrestricted current fund revenue amount since there were no
services rendered at all pertaining to the cancellation refund.

4. Only the unsolicited merchandise sent to encourage contribution is classified as fund-

raising cost under supporting expenses. The Printing of annual report is administrative
cost.

5. The P1,250,000 principal specified by the donor as non-expendable is classified as pure

or regular endowment fund. The P750,000 expendable after 2020 is a term endowment
fund while the P250,000 designated from current fund is a quasi-endowment fund.

6. Only the P500,000 bequest from an estate of a benefactor is classified as restricted net
assets in particular temporarily restricted. The P250,000 is a board-designated fund
therefore, unrestricted.

7. Based on the choices given, the P250,000 cash received by the church was classified
under deferred support because of the condition given by the donor.

8. The P50,000 restricted donation by a donor is considered as contribution revenue. Also,

the P37,500 less expenses in the amount of P25,000 is also a contribution revenue. The
third item was not considered as a revenue because of the condition regarding its
completion.

9. Only the P1,000,000 fund held indefinitely is classified as permanently restricted net
assets.

The temporarily restricted net assets are composed of the remaining P100,000 (net of
P50,000) dividend for research project and the remaining P200,000 (net of P100,000)
fund for acquisition of service car.
 The unrestricted net assets are composed of the service car P90,000 ( net of
accumulated depreciation) ; the remaining P400,000 board-designated fund and the
P150,000 proceeds from the sale of souvenir items.

10. No revenue was recognized since services rendered did not require specialized skills.
Therefore it is not quantifiable.

NOT-FOR-PROFIT ORGANIZATION_8722

1. All the three items are considered as revenue whether restricted or unrestricted;
expended or not yet expended. Current fund revenue are items that are unrestricted
and those restricted already expended.

2. Only the P12,500,000 is considered as temporarily restricted because of the restriction

as to purpose while the P5,000,000 is permanently restricted and the P100,000
unrestricted.

3. Gross patient service revenue amounted to P1,960,000.

4. Both the P600,000 cash receipt from patients and P50,000 from gift shop are classified
as operating activity in the statement of cash flows. The P100,000 interest income with
donor-restriction is classified as financing inflow.

5. The P1,000,000 unrestricted cash contribution is classified as operating inflow ; The

restricted cash contribution is classified as financing inflow ; The P400,000 expenditure
to acquire property is investing outflow.

6. In 2020, the P1,000,000 donation held indefinitely is permanently restricted while the
P100,000 dividend restricted as to purpose is temporarily restricted.

In 2020, the total amount of P1,100,000 are both classified in the cash flows as financing
inflow since both P1,000,000 and P100,000 are restricted.

In 2021, there was a decrease in the temporarily restricted classification in the amount
of P20,000. It was released from being temporarily restricted and reclassified to
unrestricted before using the fund to acquire a P20,000 worth of computer. At the end
of 2021 the computer is presented in the amount of P16,000 (net of accumulated
depreciation)
In 2021, the purchase of computer worth P20,000 is classified as investing outflow in the
statement of cash flows.