jeter aa 4e solutionsmanual ch19
Post on 15-Nov-2015
120 Views
Preview:
DESCRIPTION
TRANSCRIPT
-
19 - 1
CHAPTER 19
Note: The letter A, B, or C indicated for a question, exercise, or problem means that the question,
exercise, or problem relates to a chapter appendix.
ANSWERS TO QUESTIONS
1. In 1979, the FASB took the responsibility for establishing financial accounting and reporting
standards for NNOs. Support for existing accounting and reporting practices is also contained in
Audit Guides and Statements of Position published by the AICPA.
2. NNOs use fund accounting because in many cases their resources are restricted by law, contract,
donors, other external authorities, or the organization's governing board. Fund accounting
facilitates compliance with such restrictions.
3. NNOs need to distinguish between restricted and unrestricted funds in order to separate resources
that may be used at the discretion of the governing board and those which have restrictions.
Resources not found in the unrestricted funds have contractual, external, legal, or discretionary
restrictions.
4. Unlike other NNOs, hospitals combine their revenues from unrestricted resources and restricted
resources in the General Fund accounts and financial statements. In addition, hospitals account for
property and equipment, accumulated depreciation and depreciation expense, and long-term
obligations associated with the acquisition of property and equipment in the General Fund whereas
other NNOS account for these assets and liabilities in Plant Funds.
5. Unconditional pledges are recorded as revenues while conditional pledges are not recorded until
they become unconditional. An example of unconditional pledges is when a donor makes a
nonrevocable offer to give one million dollars to a hospital. An example of conditional pledges is
when a donor offers to contribute one million dollars if the hospital receives less than ten million
dollars from government funding in the next fiscal year.
6. Nonmandatory transfers are transfers by Colleges and Universities of Board Designated Funds
from the resources of the Unrestricted Current Fund to Quasi-Endowment, Loan, Plant or other
funds maintained by the College or University.
7. Yes, board designated funds should be accounted for in the Unrestricted Current Fund (General
Fund of a hospital). The procedure for formal recognition of such designations in the Unrestricted
Current Fund by NNO's other than hospitals is similar to an appropriation of retained earnings.
Hospitals classify resources that have been designated by the board for a specific use in a separate
section of the Statement of Financial Position of the General Fund entitled Assets Whose Use is
Limited.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 2
8. Prior to the effective date of SFAS No. 116, donated services were recorded under different circumstances for each of the NNOs. The necessary conditions to be met for each NNO were Colleges:
When operated by a religious group, donated services rendered by members of the religious group should be recorded at their monetary values.
Hospitals: (1) The organization controls the employment and duties of the persons donating the service and (2) The organization has a clearly measurable basis for determining the amount of revenue and expenses to be recorded.
VHWOs: (1) and (2) from above and (3) The services performed are significant and form an integral part of the efforts of the organization and the services would be performed by salaried personnel if the donated services were not available.
ONNOs: (1), (2), (3), from above and (4) The services of the reporting organization are not principally intended for the benefit of its members.
Under the provisions of SFAS NO. 116, donated services are recognized by all NNOs only if the services received (a) create or enhance nonfinancial assets or (b) require professional skills, are provided by individuals possessing those skills, and typically would need to be purchased if not provided by donation. The provisions of SFAS 116 are effective for financial statements issued by larger NNOs for years beginning after December 15, 1994. Thus, in terms of annual financial statements, these changes will appear in financial statements distributed beginning in 1996 by larger NNOs and in 1997 by smaller NNOs.
9. Voluntary services rendered for fund raising campaigns are usually not recognized in the accounting records because of the difficulty of measuring a market value for them and because it is extremely difficult for the organization to implement effective controls over the performance of volunteer solicitors.
10. The revenue is recorded at the standard rate and any waivers or discounts are reported separately as expenditures or as reductions of gross revenue.
11. Library books owned by a university are accounted for in the Plant Fund. Depreciation expense should be recorded in the investment in plant fund. Note, prior to the issuance of SFAS No. 97 by the FASB, colleges and universities were not required to record depreciation expense.
12. Medical equipment and long-term obligations are accounted for in the General Fund of a hospital. VHWOS would use a Plant Fund to account for such equipment and the related obligation.
13. ONNOs need not record depreciation on historical treasures and works of art that have estimated useful lives that are extraordinarily long. To qualify, such assets must have cultural, historical or aesthetic value that is worth preserving perpetually and the holder must have the financial and technological ability to protect and preserve the asset.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 3
14. (1) Pure Endowment Fund - the principal is donated and must be maintained in perpetuity. (2) Term Endowment Fund - the donor specifies a particular date or event after which the
principal may be expended. (3) Quasi-Endowment Fund - board designated resources that are transferred from the Unrestricted
Current Fund by a college or university. Maintenance or expenditure of the principal is at the discretion of the governing board.
15. The difference between an Annuity Fund and a Life Income Fund is that under an Annuity Fund,
the beneficiary receives periodic payments of a stated amount while the beneficiary of a Life Income Fund receives periodic payments of varying amounts (depending on the fund's earnings).
Business Ethics
Business ethics solutions are merely suggestions of points to address. The objective is to raise the
students' awareness of the topics, and to invite discussion. In most cases, there is clear room for
disagreement or conflicting viewpoints.
An important aspect of the job of a president of a university is fund raising and maintaining the
visibility of the university. University presidents are hired because of the skills needed to accomplish
this goal. The president should be allowed some flexibility in choosing the strategies to implement in
pursuing this objective. This, however, does not mean that the president has unlimited spending
authority. Without proper oversight, inappropriate spending could go unchecked. Clearly, procedures
need to be developed to oversee the spending of the president. This can be accomplished through the
board of trusts of the university. Encourage students to discuss whether Gordon Gee was, or was not
within acceptable limits in the instance cited in the article.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 4
ANSWERS TO EXERCISES Exercise 191 Part A Current Unrestricted Fund
Part B Unexpended Plant Fund
Exercise 192 General Fund
General Services Expense Donated Services (Nonoperating Revenue)
5,500
5,500
Exercise 193 Restricted Current Fund
Cash Contribution Revenue Poetry Collection
Net Assets Released from Restrictions
Cash Unrestricted Current Fund Cash Net Assets Released from Restrictions Expenses Poetry Collection
Cash
300,000
100,000
100,000
100,000
300,000
100,000
100,000
100,000
Exercise 194 Loan Fund
(1) Cash Revenue Contributions Restricted
100,000 100,000
(2) Loans Receivable Students Loans Receivable Faculty
Cash Bad Debt Expense
Allowance for Uncollectible Loans Students Allowance for Uncollectible Loans Faculty
60,000 40,000
10,000
100,000
6,000 4,000
(3) Allowance for Uncollectible Loans Students
Loans Receivable Students
1,000 1,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 5
Exercise 19-4 (continued)
(4) Cash Loans Receivable Students Loans Receivable Faculty Interest Income
16,300 10,000 5,000 1,300
Exercise 195 Proportional Interest Interest and Dividends
Realized
Gains
Restricted Fund (105/420)
Quasi-Endowment (147/420)
Life Income (168/420)
Total
Loan Fund
25%
35%
40%
100%
$ 7,500
10,500
12,000
$ 30,000
$ 5,000
7,000
8,000
$ 20,000
Cash
Investments
Investment Income
Quasi-Endowment Fund
7,500
5,000
12,500
Cash
Investments
Investment Income
Life Income Fund
10,500
7,000
17,500
Cash
Investments
Investment Income
12,000
8,000
20,000
Exercise 196 2008 Current Unrestricted Fund
(1)
(2)
Pledges Receivable
Revenue - Contributions
Expense - Provision for Uncollectible Pledges
Allowance for Uncollectible Pledges
1,000,000
250,000
1,000,000
250,000
2009 (3)
(4)
Cash
Pledges Receivable
Provision for Uncollectible Pledges
Allowance for Uncollectible Pledges
Pledges Receivable
700,000
50,000
250,000
700,000
300,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 6
Exercise 197
Endowment Fund
(1)
Cash Revenue Contribution - Restricted
2,000,000 2,000,000
(2)
Investments Cash
2,000,000 2,000,000
(3)
Cash Due to General Fund Due to Specific Purpose Fund
400,000 300,000 100,000
(4)
Due to General Fund Due to Specific Purpose Fund
Cash
300,000 100,000
400,000
(8) Transfer to Plant Replacement and Expansion Fund Cash
2,000,000 2,000,000
General Fund
(3)
Due from Endowment Fund Unrestricted Income from Endowment Fund
300,000 300,000
(4)
Cash Due from Endowment Fund
300,000 300,000
(5)
Other Professional Services - Research Other Operating Revenue
80,000 80,000
(6)
Assets Whose Use is Limited Cash
80,000 80,000
(7) Loans Receivable Cash
180,000 180,000
Specific Purpose Fund
(3) (4)
Due from Endowment Fund Fund Balance
Cash Due from Endowment Fund
Fund Balance Cash
100,000
100,000
80,000
100,000
100,000
80,000
Plant Replacement and Expansion Fund
(8)
Cash Transfer from Endowment Fund - Restricted
2,000,000
2,000,000
Endowment Fund
(1)
Fund Balance Term Cash
2,000,000 2,000,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 7
Exercise 198 Endowment Fund (1) Endowment fund balance 3,000,000 Cash 3,000,000 Unexpended Plant Fund
(1) (2) (3) (4) (4)
Cash Fund Balance - Restricted
Construction in Process
Cash Accounts Payable
Construction in Process Accounts Payable
Cash Building
Work in Process Fund Balance - Restricted Fund Balance - Unrestricted
Building Investment in Plant Fund
Building Net Investment in Plant
3,000,000
1,000,000
2,100,000 30,000
3,100,000
3,000,000 100,000
3,100,000
3,000,000
970,000 30,000
2,130,000
3,100,000
3,100,000
3,100,000 Exercise 19-9 Exercise 19-10 Exercise 19-11
1. b 1. d 1. d 2. a 2. c 2. c 3. c 3. a 3. a 4. d 4. c 4. c 5. C 5. C
Exercise 19-12 Exercise 19-13 Exercise 19-14
1. d 1. b 1. a 2. b 2. b 2. d 3. b 3. c 3. d 4. c 4. c 4. d 5. A
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 8
ANSWERS TO PROBLEMS
Problem 191
Statement of Activities
Patient Service Revenue
Allowances and Uncollectible Accounts
Net Patient Service Revenue
$16,000,000
(3,400,000)
12,600,000
Other Operating Revenue (includes $160,000 from specific purpose funds)
Total Operating Revenue
346,000
12,946,000
Operating Expenses (includes depreciation of $500,000)
Loss from Operations
13,370,000
(424,000)
Nonoperating Revenue:
Unrestricted Gifts and Requests
Unrestricted Income from Endowment Funds
Income from Board-Designated Funds
Total Nonoperating Revenue
Excess of Revenue over Expenses
410,000
160,000
82,000
652,000
$228,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 9
Problem 192
Trial Balance
Adjustments
General Fund
Endowment Fund
Plant Replacement
Fund
Account Description Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash $50,000 $50,000
Investment in U.S. Treasury Bills 105,000 $105,000
Investment in Common Stock 417,000 $ 417,000
Interest Receivable 4,000 4,000
Accounts Receivable 40,000 40,000
Inventory 25,000 25,000
Land 407,000 (2)$385,000 22,000
Building 245,000 (3)$100,000 345,000
Equipment 283,000 283,000
Allowance for Depreciation 376,000 (4) $62,000 $438,000
Accounts Payable 70,000 70,000
Bank Loan 150,000 150,000
Endowment Fund Balance 119,500 (1) 14,500 $105,000
Other Fund Balances 860,500 (2) 385,000 (1) 14,500
(4) 62,000 (3) 100,000
(5) 528,000
Plant Replacement Fund Balance (5) 417,000 $417,000
General Fund Balance (5) 111,000 111,000
Totals $1,576,000 $1,576,000 $1,089,500 $1,089,500 $769,000 $769,000 $105,000 $105,000 $417,000 $417,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 10
Problem 192 (continued)
Adjusting Entries (not required)
(1) Endowment Fund Balance
Other Fund Balances
To eliminate from the Endowment Fund Balance the investment
income earned on U.S. Treasury Bills
14,500
14,500
(2)
Other Fund Balance
Land
To eliminate from the land account the $380,000 appraisal increase and
the $5,000 cost of the old building which was demolished.
385,000
385,000
(3) Building
Other Fund Balance
To eliminate the appraisal decrease and restate the hospital building at
its actual cost.
100,000
100,000
(4) Other Fund Balances
Allowance for Depreciation
To correct the allowance for depreciation through December 31, 2008
in accordance with the following computation:
Building - $300,000 at 2% times 41 years
Elevator - $45,000 at 5% times 15 years
Equipment ascertained to be accurate Total accumulated depreciation, as computed
Less accumulated depreciation per books
Understatement of accumulated depreciation
62,000
$246,000
33,750
158,250
438,000
376,000
$62,000
62,000
(5) Other Fund Balances
Plant Replacement Fund
General Fund
To close out Other Fund Balances and to allocate its balance to the
General Fund and the Plant Replacement Fund.
528,000
417,000
111,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 11
Problem 193 CENTURY UNIVERSITY Transactions for the Year Ended June 30, 2008
Part A Current Funds
Endowment Fund Unrestricted Restricted
Account Debit Credit Debit Credit Debit Credit
(1) Cash
Contribution Revenue
To record receipt of cash gift for purchase of books
50,000
50,000
Cash
Contribution Revenue
To record receipt of cash gift to establish scholarship fund
50,000
50,000
Investment in Savings Certificates
Cash
To record purchase of savings certificates
50,000
50,000
(2) Cash
Deferred Revenue
Accounts Receivable
Revenue
To record tuition and fees revenue
1,686,000
66,000
148,000
1,900,000
Cash
Deferred Revenue
To record deferred revenue at June 30, 2008
158,000
158,000
(3) Cash
Allowance for Uncollectible Accounts
Accounts Receivable
349,000
1,000
350,000
(4) Cash
Revenue
6,000
6,000
To record interest earned on late student fee payments
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 12
Problem 193 (continued)
Current Funds Endowment Fund
Unrestricted Restricted
Account Debit Credit Debit Credit Debit Credit
(5) Cash
State Appropriation Receivable
Revenue
State Appropriation Receivable
75,000
50,000
50,000
75,000
To record receipt of regular appropriation and to record
additional appropriation
(6) Cash
Revenue
To record receipt of unrestricted gift
25,000
25,000
(7) Cash
Investment
Fund Balance
To record sale of investments
Cash
Investment Income
To record income earned on investments
26,000
1,900
21,000
5,000
1,900
(8) Expenses
Accounts Payable
Cash
1,777,000
59,000
1,718,000
(9) Expenditures
Cash
To record payment of authorized expenditures
Fund Balance
Revenue
To record as revenue amounts expended for restricted
purposes
13,000
13,000
13,000
13,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 13
Problem 193 (continued) Current Funds
Endowment Fund Unrestricted Restricted
Account Debit Credit Debit Credit Debit Credit
(10) Accounts Payable Cash
45,000 45,000
(11) Cash Due to Current Restricted Fund
To record receipt of interest income on savings certificates purchased by Endowment Fund
7,000 7,000
Due from Endowment Fund Fund Balance
7,000 7,000
To record income due from Endowment Fund for Scholarships Part B CENTURY UNIVERSITY
Statement of Activities For the Year Ended June 30, 2008
Current Funds Endowment Fund
Unrestricted Restricted
Revenue and additions: Unrestricted current fund revenues Private gifts restricted Endowment income - restricted Realized gains on investments restricted Investment income restricted
Total revenue & additions
$1,981,000
$1,981,000
$50,000 7,000 5,000
1,900 $63,900
$50,000
50,000 $0
Expenditures: Educational & general
Total expenditures
$1,780,000 $1,780,000
$13,000 $13,000
0
Net increase for the year Fund balance at beginning of year Fund balances at end of year
201,000 515,000 $716,000
50,900 67,000 $117,900
50,000 0 $50,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 14
Problem 193 (continued)
Part C
CENTURY UNIVERSITY
Statement of Activities
For the Year Ended June 30, 2008
Current Funds Total
Revenue and additions:
Tuition and fees
State appropriations
Private gifts and grants
Interest on deferred tuition
Total current revenue
Expenditures:
Educational and general
Total expenditures
Unrestricted
$1,900,000
50,000
25,000
6,000
1,981,000
1,780,000
1,780,000
Restricted
$13,000
13,000
13,000
13,000
$1,900,000
50,000
38,000
6,000
1,994,000
1,780,000
1,780,000
Excess of restricted receipts over transfers to revenue 50,900 50,900
Net increase in fund balance $201,000 $50,900 $264,900
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 15
Problem 194
Event Fund Journal Entry
1 Endowment Fund Brown
Cash
Revenue
10,000
10,000
2 Endowment Fund Gross
Cash
Revenue
20,000
20,000
3 Endowment Fund Norton
Cash
Revenue
30,000
30,000
4 Annuity Fund
Cash
Revenue-contribution
Annuity Payable
($10,000 8.1109)
205,000
123,891
81,109
5 Endowment Fund Jackson
Investments (1,000)($150)
Revenue
150,000
150,000
6A Endowment Fund Brown
Investments (1/3)($30,000)
Cash
10,000
10,000
6B Endowment Fund Gross
Investments (2/3)($30,000)
Cash
20,000
20,000
7 Endowment Fund Norton
Investments
Cash
30,000
30,000
8 Annuity Fund
Investments
Cash
200,000
200,000
Interest computations ($30,000)(.12) = $3,600, 1/3 of $3,600, or $1,200 to Brown, 2/3 of $3,600, or $2,400 to Gross
($30,000)(.10)=$3,000 to Norton
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 16
Problem 19-4 (continued)
Event Fund Journal Entry
9A1 Endowment Fund Brown
Cash
Due to Unrestricted Current Fund
600
600
9A2 Unrestricted Current Fund
Due from Endowment Fund Brown Investment Income
600
600
9B1 Endowment Fund Gross
Cash
Due to Restricted Current Fund
1,200
1,200
9B2 Restricted Current Fund
Due from Endowment Fund - Gross
Investment Income
1,200
1,200
9C1 Endowment Fund - Norton
Cash
Due to Loan Fund
1,500
1,500
9C2 Loan Fund
Due From Endowment Fund - Norton
Investment Income
1,500
1,500
9D Annuity Fund
Cash (8%)($200,000)/2
Annuity payable
8,000
8,000
9E Endowment Fund - Jackson Cash
Investment Income (BIM
dividend)
4,000
4,000
9F1 Endowment Fund - Brown
Due to Unrestricted Current Fund
Cash
600
600
9F2 Unrestricted Current Fund
Cash
Due from Endowment Fund -
Brown
600
600
9G1 Endowment Fund - Gross
Due to Restricted Current Fund
Cash
1,200
1,200
9G2 Restricted Current Fund
Cash
Due from Endowment Fund -
Gross
1,200
1,200
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 17
Problem 194 (continued)
Event Fund Journal Entry
9H1 Endowment Fund - Norton
Due to Loan Fund
Cash
1,500
1,500
9H2 Loan Fund
Cash
Due from Endowment Fund Norton
1,500
1,500
10 Annuity Fund Annuity Payable
Cash
10,000
10,000
11 Endowment Fund - Brown
Cash
Investments
Fund Balance
6,800
6,667
133
Endowment Fund - Gross
Cash
Investments
Fund Balance
13,600
13,333
267
12 Loan Fund
Loan Receivable
Cash
300
300
13 Annuity Fund
Unexpended Plant Fund
Annuity Payable
Revenue
Due to Unexpended Plant Fund
Due from Annuity Fund
Fund Balance Restricted
79,109
123,891
203,000
203,000
203,000
14 Restricted Current Fund (1) Expenses Scholarship Cash
200
200
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 18
Problem 194 (continued)
Event Fund Journal Entry
15 Annuity Fund
Cash Investment income Investments
206,000 6,000
200,000
Annuity Fund Investment income) Due to unexpended plant fund
6,000 6,000
Unexpended Plant Fund Due from annuity fund Fund balance restricted
6,000 6,000
16 Endowment Fund Norton (1A) Cash Due to Loan Fund
(1B) Due to Loan Fund Cash
1,500
1,500
1,500
1,500
Loan Fund
(2A) Due from Endowment Fund - Norton
Investment income (2B) Cash
Due from Endowment Fund Norton
1,500
1,500
1,500
1,500 Endowment Fund-Brown Cash
Due to unrestricted current fund 200
200 Unrestricted current fund Due from endowment fund - Brown
Endowment income 200
200 Endowment Fund-Gross Cash
Due to restricted current fund 400
400 Restricted Current Fund -
Gross
Due from Endowment Fund - Gross
Investment Income
400 400
** Note: These entries assume the cash due on January 1 was received on December 31.
17 Loan Fund
Cash Loan Receivable Interest income
105 100
5
18 Annuity Fund
(1) Due to Unexpended Plant Fund Cash
209,000 209,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 19
Problem 194 (continued) Unexpended Plant Fund
Investment in Plant
(2) Cash Due from Annuity Fund Mortgage Payable
(3) Building
Cash (4) Fund Balance Restricted Mortgage Payable
Building (5) Building
Mortgage Payable Net Investment in Plant
250,000
250,000
209,000 41,000
250,000
209,000 41,000
250,000
250,000
41,000 209,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 20
Problem 195 Part A 1. Cash
Revenue - Service Fees
Revenue - Book Rentals & Fines
151,000
30,000
121,000
2. Cash
Grant Receivable
Grant Receivable
Support Grants
40,000
20,000
40,000
20,000
3. Cash (Unrestricted)
Cash Temporarily Restricted Contributions Gifts Contributions Restricted Support
215,000
108,000
215,000
108,000
4. Cash
Investment Income
75,000
75,000
5. Expenses - Circulating Library
Expenses - Research Library
Expenses - Exhibits
Expenses - Community Services
Expenses - General & Administrative
Expenses - Fund Raising
Accounts Payable
189,000
74,000
15,000
12,000
166,000
103,000
559,000
6. Accounts Payable
Cash
500,000
500,000
7. Expenses - Research Library
Expenses - General & Administrative
Accrued Expenses
5,000
3,000
8,000
8. Net Assets Released from Restrictions
Cash Temporarily Restricted Cash Unrestricted Net Assets Released from Restrictions
68,000
68,000
68,000
68,000
9.
Investments
Investment Income
15,000
15,000
10. Expenses - Circulating Library
Expenses - Research Library
Expenses - General & Administrative
Accumulated Depreciation
3,500
2,900
2,600
9,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 21
Problem 195 (continued)
11. Expenses - Exhibits
Expenses - General & Administrative
Prepaid Expenses
3,700
1,300
5,000
Part B
PRESTON LIBRARY Statement of Financial Position, February 28, 2008
Assets
Current Assets Cash Grants Receivable Prepaid Expenses
Total Investments (at market) Land, Buildings, and Equipment
Less accumulated depreciation of $59,000 Total Assets
Liabilities and Fund Balances
Current Liabilities Accounts Payable & Accrued Expenses
Total Long-term Debt Fund Balances
Total Liabilities and Fund Balances
Unrestricted
$334,000 60,000
60,000 454,000
1,035,000
521,000 $2,010,000
$ 217,000 217,000 200,000
1,593,000 $2,010,000
Temporarily Restricted $120,000
________ $120,000
120,000 $ 120,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 22
Problem 195 (continued)
PRESTON LIBRARY Statement of Activities
For Year Ended February 28, 2008 Support & Revenue
Support Grants Gifts
Total Revenue
Service Fees Book Rental & Fines Investment Income
Total Net Assets Released from Restrictions
Total Revenue, Gains and Other Support Expenses
Program Services Circulating Library Research Library Exhibits Community Services
Total
Support Services General & Administrative Fund Raising
Total Total
Increase (decrease) in Net Assets Fund Balances Beginning of Year Fund Balances End of Year
Unrestricted
$20,000
215,000 235,000
30,000
121,000 90,000 241,000 68,000 $544,000
$192,500 81,900 18,700
12,000 305,100
172,900 103,000 275,900 $ 581,000
($37,000)
1,630,000 $1,593,000
Temporarily Restricted
108,000 108,000
(68,000) 40,000
40,000 80,000
$ 120,000
20-2
0
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 23
Problem 196 BLOOD DONORS OF AMERICA FOUNDATION
Statement of Financial Position, December 31, 2008 Current
Unrestricted Restricted Plant Endowment Total
ASSETS Cash $230,000 $155,000 $15,000 $70,000 $470,000 Accounts Receivable 160,000 160,000 Allowance for Doubtful Accounts (30,000) (30,000) Pledges Receivable 930,000 930,000 Allowance for Doubtful Pledges (130,000) (130,000) Inventories 400,000 400,000 Investments 8,205,000 6,380,000 935,000 3,780,000 19,300,000 Land 1,300,000 1,300,000 Buildings and Improvements 46,500,000 46,500,000 Equipment 2,700,000 2,700,000 Accumulated Depreciation (13,500,000) (13,500,000) Other Assets 200,000 200,000
Total Assets $9,165,000 $7,335,000 $37,950,000 $3,850,000 $58,300,000
LIABILITIES AND FUND BALANCES
Accounts Payable $665,000 $35,000 $700,000 Accrued Expenses 130,000 130,000 Deferred Revenue Unrestricted 100,000 100,000 Deferred Capital Additions 1,600,000 1,600,000 LongTerm Debt 7,350,000 7,350,000
Total Liabilities 895,000 35,000 8,950,000 9,880,000
Fund Balances Plant Fund 29,000,000 29,000,000 Endowment Fund 3,850,000 3,850,000 Restricted Fund 7,300,000 7,300,000 Unrestricted Fund 8,270,000 8,270,000
Total Fund Balances 8,270,000 7,300,000 29,000,000 3,850,000 48,420,000
Total Liabilities and Fund Balance $9,165,000 $7,335,000 $37,950,000 $3,850,000 $58,300,000
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
-
19 - 24
Problem 197
Part A January 1, 2009
Restricted Fund ($70,000/$500,000) 14%
Lambert Endowment Fund ($210,000/$500,000) 42%
Plant Fund ($220,000/$500,000)
44%
January 3, 2010
Current market value = $540,000 - 0.44 $540,000 + $117,600 = $420,000
Restricted Fund ((0.14 $540,000)/$420,000) 18%
Lambert Endowment Fund ((0.42 $540,000)/$420,000) 54%
Fargot Annuity Fund ($117,600/$420,000) 28%
Part B
Date Fund Journal Entry Debit Credit
12/31/2009 Restricted
Cash (($15,000 + $10,000) 0.14)
Investments ($20,000 0.14)
Deferred Support
3,500
2,800
6,300
Lambert
Endowment
Cash (($15,000 + $10,000) 0.42)
Investments ($20,000 0.42)
Investment Income
10,500
8,400
18,900
Plant
Cash (($15,000 + $10,000) 0.44)
Investments ($20,000 0.44)
Deferred Support
11,000
8,800
19,800
12/31/2010 Restricted
Cash (($25,000 + $15,000) 0.18)
Investments ($30,000 0.18)
Deferred Support
7,200
5,400
12,600
Lambert
Endowment
Cash (($25,000 + $15,000) 0.54)
Investments ($30,000 0.54)
Investment Income
21,600
16,200
37,800
Fargot
Annuity
Cash (($25,000 + $15,000) 0.28))
Investments ($30,000 0.28)
Investment Income
11,200
8,400
19,600
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
top related