Transcript
CHAPTER 16 NONPROFIT ORGANIZATIONS The title of each problem is followed by the estimated time in minutes required for completion and by a difficulty rating. The time estimates are applicable for students using the partially filled-in working papers. Pr. 16–1
Seaside Hospital (30 (30 minutes, easy)
Preparation of statement of activities for a nonprofit hospital that has only a general fund. Pr. 16–2 Holley School (30 (30 minutes, minutes, medium) medium) Journal Journal entries entries for transactio transactions ns and event eventss of a nonpro nonprofit fit private private secon secondary dary schoo school, l, in unrestricted fund, quasi-endowment fund, and plant fund. Pr. 16–3 Nonprofit Trade Trade Association Association (30 minutes, minutes, medium) medium) Preparation of a statement of activities and a statement of financial position for a nonprofit trade association that does not use fund accounting. Pr. 16–4 Suburban Welfare Welfare Services (50 Services (50 minutes, minutes, medium) Working paper to compute original and revised equity percentages for funds of a nonprofit volu volunta ntary ry heal health th and and welf welfare are organ organi iati ation on in an inve invest stme ment nt pool pool.. Jou Journa rnall entri entries es for for unrestricted fund for operations of the investment pool. Pr. 16–5 Harbor Hospital (50 (50 minutes, minutes, medium) medium) Journal entries for transactions and events of general fund, restricted fund, and annuity fund of a nonprofit hospital. Pr. 16–6 Wigstaff Wigstaff Foundation (50 Foundation (50 minutes, medium) Preparation of a statement of cash flows for a nonprofit research and scientific organiation, in the indirect method format. Pr. 16–7 Mid-City Sports Club (50 Club (50 minutes, minutes, medium) medium) Preparation of !ournal entries "e#planations omitted$ for events and transactions of a nonprofit social club. %lso, preparation of a statement of activities and a statement of financial position. Pr. 16–8 State University (60 University (60 minutes, strong) Journal Journal entrie entriess for transactio transactions ns and event eventss of a nonpro nonprofit fit univer university sity&s &s unrestric unrestricted ted fund, fund, restricted fund, and endowment fund. Pr. 16–9 esthaven Hospital (60 (60 minutes, strong) Journal Journal entrie entriess for transactio transactions ns and event eventss of a nonpro nonprofit fit hospit hospital&s al&s genera generall fund, fund, plant plant replacement and e#pansion fund, and endowment fund. Pr. Pr. 16–10 1 6–10 !ibra College (60 College (60 minutes, strong) Journal entries for unrestricted fund and restricted fund of a nonprofit college' preparation of statement of changes in fund balances. Pr. 16–11 "isadvantaged Children Association (60 Association (60 minutes, strong) Preparation Preparation of financ financial ial stateme statements nts,, e#clud e#cludin ing g a stateme statement nt of cash flows, flows, for a nonpro nonprofit fit voluntary health and welfare organiation.
The © The
()*
McGraw-Hill McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
ANSWERS TO REVIEW QUESTIONS (.
.
8.
*.
=.
>.
The © The
()=
% nonproit organi!atio or gani!ation n is an entity that is usually operated for the benefit of society as a whole, rather than for the benefit of an individual proprietor or a group of partners or stockholders. The concept of +net income+ is not meaningful for a nonprofit organiation. %mon %m ong g the the types types of of nonp nonprof rofit it org organi aniati ations ons in the nite nited d tates are the follow followin ing g "on "only ly four required$/ 0emetery organiations Private and community foundations 0ivic organiations Private elementary and secondary schools 0olleges and universities Professional associations 0ultural institutions Public broadcasting stations 1raternal organiations 2eligious organiations 3ospitals 2esearch and scientific organiations 4abor unions ocial and country clubs 4ibraries Trade associations 5useums 6oluntary health and welfare organiations Performing arts organiations 7oological and botanical societies Political parties 9ach of the %:0P% Accounting and Auditing #uides or $ndustry $ndustry Audit #uides dealing with nonprofit organiations contains a section that indicates that the accounting concepts included therein have the substantial authoritative support required for generally accepted accounting principles. principles. 0haracteris 0haracteristics tics of nonpro nonprofit fit organi organiati ations ons resemb resemblin ling g thos thosee of of gov govern ernme mental ntal entit entities ies includ includee the the following "only three are required$/ "($ #ervice to societ$ . ;onprofit organiations render services to society as a whole. "$ %o pro&it motivation motivation . ;onprofit organiations do not operate with the ob!ective of earning a net income. "8$ 'inancin ($ the citi)enr$ citi)enr$ . 5ost nonprofit organiations depend on the general population for a substantial portion of their support because revenues from services generally do not cover all their operating costs. "*$ #tewardship &or resources .
. a ?. a
). a @. c (A. e "B>A,AAA C B)A,AAA D B=*A,AAA$ ((. c (. c (8. d
+. 16–2
Journal entries for ;eighborhood 3ospital, 5ay 8(, AA>/ %ccounts 2eceivable Patient ervice 2evenues © The
#olutions Manual, Chapter !6
)>A,AAA )>A,AAA McGraw-Hill Companies, Inc., 2006 ()>
%ccounts 2eceivable Patient ervice 2evenues
=A,AAA =A,AAA
0ontractual %d!ustments %ccounts 2eceivable
(*A,AAA (*A,AAA
Eoubtful %ccounts 9#pense %llowance for Eoubtful %ccounts +. 16–3
+. 16–4
A,AAA A,AAA
1inancial statement presentation of 2edwood 3ospital for month of ept., AA>/ -n statement o a"tiities Patient service revenues "net of contractual ad!ustments, B(),=AA$
B8,AAA
-n statement o inan"ia# position %ccounts receivable "net of allowance for doubtful accounts, B(*,>AA$
BA),*AA
Journal entries for 2ecuperative 3ospital, Fct. 8(, AA>/ %ccounts 2eceivable Patient ervice 2evenues
AA,AAA AA,AAA
%ccounts 2eceivable Patient ervice 2evenues
+. 16–5
+. 16–6
+. 16–7
© The
()?
>,AAA >,AAA
0ontractual %d!ustments %ccounts 2eceivable
8,AAA
Eoubtful %ccounts 9#pense %llowance for Eoubtful %ccounts
*,AAA
8,AAA *,AAA
Journal entry for niversity of outh Park nrestricted 1und, June (=, AA>/ 4ibrary ,AAA 0ontributions 2evenue To record contribution of library books by various publishers. Journal entry for 0ordova 3ospital General 1und, 5ar. 8(, AA>/ :nventories 0ontributions 2evenue To record difference between current fair value "B>,*AA$ and nominal cost "BAA$ of medicine and drugs as support from contributed material. Journal entry for Warner 0ollege nrestricted 1und, Fct. 8(, AA>/ alaries 9#pense "B8,*AA C B()A$ 0ontributions 2evenue To record contributed services at current fair value, less value of meals provided to donors. "Ta# withholdings are disregarded.$
(>,AAA
>,AA >,AA
8,A 8,A
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
+. 16–8
Journal entries for 5odern 5useum, June 8A, AA>/ alaries 9#pense 0ontributions 2evenue To record contributed services of docents for the year.
>),AAA >),AAA
2ent 9#pense 0ontributions 2evenue To record current fair value of rental of storage facilities whose use was contributed. +. 16–9
@>,AAA @>,AAA
Journal entries for 0ommunity Welfare, :nc. nrestricted 1und, ;ov. 8A, AA>/ Pledges 2eceivable 0ontributions 2evenue
=AA,AAA
Provision for Eoubtful Pledges "B=AA,AAA # A.A$ %llowance for Eoubtful Pledges
(AA,AAA
=AA,AAA (AA,AAA
%llowance for Eoubtful Pledges Pledges 2eceivable
8A,AAA 8A,AAA
0ash
*A,AAA Pledges 2eceivable
*A,AAA
+. 16–10 %d!usting entry for Wabash 3ospital General 1und, June 8A, AA>/
Pledges 2eceivable Provision for Eoubtful Pledges %llowance for Eoubtful Pledges "B>A,AAA # A.($ 0ontributions 2evenue "B8AA,AAA C B?=,AAA$ 1und A,AAA ?,AA ?,AA =,AAA 8=,AAA
+. 16–11 Journal entries for Wilmington 0ollege 2estricted 1und, June 8A, AA>/
:nvestments in ecurities "B(A,AAA # A.=$ Gains on ecurities :nvestments To record =H share "B@A,AAA ÷ B8>A,AAA D =H$ of realied and unrealied gains of investment pool for the year.
,=AA ,=AA
0ash "B(),AAA # A.=$ *,=AA :nterest and Eividends 2evenue To record =H share of earnings of investment pool for the year. Journal entries for Wilmington 0ollege Iuasi-9ndowment 1und, June 8A, AA>/ :nvestments in ecurities "B(A,AAA # A.8=$ 8,=AA Gains on ecurities :nvestments To record 8=H "B(>,AAA ÷ B8>A,AAA D 8=H$ of realied and unrealied gains of investment pool for the year. 0ash "B(),AAA # A.8=$ :nterest and Eividends 2evenue To record 8=H share of earnings of investment pool for the year. Journal entry for Wilmington 0ollege %nnuity 1und, June 8A, AA>/ :nvestments in ecurities "B(A,AAA # A.*A$ 0ash "B(),AAA # A.*A$ %nnuity Payable © The
#olutions Manual, Chapter !6
*,=AA
8,=AA
>,8AA >,8AA
*,AAA ?,AA ((,AA
McGraw-Hill Companies, Inc., 2006 ())
To record *AH share "B(**,AAA ÷ B8>A,AAA D *AH$ of realied and unrealied gains and earnings of investment pool for the year. +. 16–12 Journal entries for %rtistry nlimited/
AA> July (
0ash
=A,AAA
0ontribution 2evenue To record gift restricted to scholarships for students of ballet. ept. (
Grants 9#pense 0ash To record grants awarded to nine students of ballet.
=A,AAA
*=,AAA *=,AAA
+. 16–13 Journal entry for Technology pecialists, July l, AA>/
Grants 9#pense 0ash To record payment of first installment of revocable three-year grant to 5artin Grey. +. 16–14
(A,AAA (A,AAA
/P% P- tatement o %inan"ia# Position une 30, 2006 (amounts in t'ousands) ssets
0ash and cash equivalents %ccounts receivable "net$ :nventory of supplies hort-term prepayments 0ash and investments restricted to acquisition of plant assets Plant assets "net$ Total assets iai#ities /et ssets 4iabilities/ ;otes payable %ccounts payable and accrued liabilities %dvances from third-party payors Eeferred revenues 3ousing and mortgage bonds payable Total liabilities ;et %ssets "unrestricted$/ 1und balance designated for plant assets ndesignated fund balance Total net assets Total liabilities and net assets
B (AA @AA AA =A >AA 8,(AA B*,@=A
B 8AA ==A AA (AA @AA B,A=A B >AA ,8AA B,@AA B*,@=A
CASES ase 16–1 The action by the board of directors of 2oakdale %ssociation is unsupportable' it might be interpreted as a deliberate attempt to mislead users of the organiation&s financial statements. %ll unrestricted revenues, regardless of source, must be recorded in the nrestricted 1und of 2oakdale %ssociation. A,AAA estimated value of services rendered by fundraising volunteers. ection 9T A8.A= of A$C*A *rofessional Standards, vol. , states that %:0P% members who sign communications such as a transmittal letter accompanying financial statements are sub!ect to 2ule A8 of the A$C*A Code of *rofessional Conduct , which in essence requires members to comply with generally accepted accounting principles. :ncluded in those principles is FAS% State&ent No' (() , +%ccounting for 0ontributions 2eceived and 0ontributions 5ade,+ paragraph @ of which limits the recognition of contributions of services to services that create or enhance nonfinancial assets or require specialied skills, such as those of accountants. 1und-raising activities require no such specialied skills. The president&s request to transfer a substantial part of his B(AA,AAA annual salary to program e#penses and fund-raising e#penses from management and general e#penses may be complied with if the chief accountant can obtain evidence supporting the president&s participation in programs and fund raising. % source of evidence might be the president&s appointments calendar or e#pense reimbursement requests. 3owever, the chief accountant should point out to the president that 6ol-Wel, as a voluntary health and welfare organiation, is also required to © The
#olutions Manual, Chapter !6
McGraw-Hill Companies, Inc., 2006 (@A
report e#penses by their natural classification, in accordance with paragraph > of FAS% State&ent No' ((+ , +1inancial tatements of ;ot-for-Profit Frganiations.+ "ee also paragraph l=@, ;ote 1, thereof.$
© The
(@(
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
8A 5inutes, 9asy Seaside Hospita
P!" 16#1 Seaside Hospita State$e%t o& A'ti(ities Fo! )ea! E%ded *+%e ,-. /--6 0a$o+%ts i% to+sa%ds2
Revenues: Patient service revenue (net) Other operating revenue
$ 1 4 2 0 1 8 0
Contributions Investent revenue
3 8 0 2 8 0
!ota" revenues
$ 2 2 # 0
%penses: &ursing services Other proessiona" services
$ ' # 0 2 # 0
enera" services *isca" services
3 # 0 1 8 0
+,inistrative services -epreciation -oubtu" accounts
2 8 0 3 4 0 8 0
!ota" e%penses
2 0 # 0
Increase in unrestricte, net assets
$
© The
#olutions Manual, Chapter !6
2 0 0
McGraw-Hill Companies, Inc., 2006 (@
8A 5inutes, 5edium Hoe3 S'oo
P!" 16#/ Hoe3 S'oo Q+asi4E%do5$e%t F+%d *o+!%a E%t!3 Fo! )ea! E%ded *+%e ,-. /--6
(3) Cash
1 1 0 0 0 0
Investents in .ecurities Pa/ab"e to nrestricte, *un, !o recor, sa"e o investents at a gain the use o
1 0 0 0 0 0 1 0 0 0 0
hich is unrestricte,
Hoe3 S'oo Pa%t F+%d *o+!%a E%t!ies Fo! )ea! E%ded *+%e ,-. /--6 (1) uipent *un, 5a"ance !o recor, acuisition o coputers b/ nrestricte,
' 0 0 0 0 ' 0 0 0 0
*un, (4) 5ui",ings
2 0 0 0 0 0 0 Cash
2 ' 0 0 0 0
6ortgage &ote Pa/ab"e !o recor, construction o ne bui",ing inance, in part b/ ' ortgage note pa/ab"e
1 7 ' 0 0 0 0
Hoe3 S'oo U%!est!i'ted F+%d *o+!%a E%t!ies Fo! )ea! E%ded *+%e ,-. /--6 (1) n,esignate, *un, 5a"ance Cash !o recor, acuisition o coputers to be carrie, in
' 0 0 0 0 ' 0 0 0 0
P"ant *un, (2) Cash
2 0 0 0 0 0 Contributions Revenue
2 0 0 0 0 0
!o recor, receipt o unrestricte, git (3) Receivab"e ro 9uasin,oent *un, Investent Incoe !o recor, investent gain receivab"e ro 9uasi
1 0 0 0 0 1 0 0 0 0
n,oent *un,
© The
(@8
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
8A 5inutes, 5edium No%p!o&it T!ade Asso'iatio%
P!" 16#, No%p!o&it T!ade Asso'iatio% State$e%t o& A'ti(ities Fo! )ea! E%ded *+%e ,-. /--6
Revenues an, gains 6ebership ,ues Conerences an, eetings Pub"ication an, a,vertising sa"es
$ 1 8 4 0 0 0 3 2 1 0 0 0 1 4 3 0 0 0
.pecia" assessents Investent revenue an, net gains
' 0 0 0 0 1 1 0 0 0
!ota" revenues an, gains %penses:
$ 7 0 ; 0 0 0
6eber services Conerences an, eetings
$
' # 0 0 0 1 # # 0 0 0
!echnica" services Counications enera" a,inistration
2 1 8 0 0 0 # 1 0 0 0 1 ' 4 0 0 0
6ebership ,eve"opent
2 7 0 0 0
!ota" e%penses
# 8 2 0 0 0
Increase in unrestricte, net assets &et assets beginning o /ear
$
2 7 0 0 0 2 8 ' 0 0 0
&et assets en, o /ear
$ 3 1 2 0 0 0
No%p!o&it T!ade Asso'iatio% State$e%t o& Fi%a%'ia Positio% *+%e ,-. /--6 Assets
Current assets: Cash
$
.hortter investents in securities +ccounts receivab"e "ess a""oance or ,oubtu" accounts $3000
7 0 0 0 2 1 7 0 0 0 2 ' 0 0 0
Pub"ications inventor/
# 1 0 0 0
!ota" current assets ($1'000 % 022) ? $'3300 (2) $300000 % 022 ? $##000 (3) $80000 > ($1'000 % 033) ? $84;'0 (4) $300000 % 033 ? $;;000 (') $100000 > ($1'000 % 03;) ? $10'8'0 (#) $300000 % 03; ? $117000
© The
(@=
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
S++!a% We&a!e Se!(i'es 0'o%'+ded2
P!" 16#8
S++!a% We&a!e Se!(i'es U%!est!i'ted F+%d
b.
*o+!%a E%t!ies 20 0' -ec 31 Investents in .ecurities Cash ains on .ecurities Investents ($1'000 % 022)
1 ' 0 0 0 2 ' 0 0 0 3 3 0 0
Interest an, -ivi,en,s Revenue ($2'000 % 022) Pa/ab"e to Restricte, *un, @($1'000 > $2'000)
' ' 0 0
% 00#A Pa/ab"e to P"ant *un, @($1'000 > $2'000) % 033A
2 4 0 0 1 3 2 0 0
Pa/ab"e to +rno", $2'000) % 03;A
1 ' # 0 0
!o recor, rea"iBe, an, unrea"iBe, gains an, earnings o investent poo" or si% onths en,e, -ec 31 200' an, "iabi"ities to other un,s 31 Pa/ab"e to Restricte, *un, Pa/ab"e to P"ant *un, Pa/ab"e to +rno", $#0000) % 027'0A
2 7 ' 0 0
Pa/ab"e to +rno", $#0000) % 032'0A Pa/ab"e to ,ar,s n,oent *un, @($40000 >
3 2 ' 0 0
$#0000) % 021#7A !o recor, rea"iBe, an, unrea"iBe, gains an, earnings
2 1 # 7 0
o investent poo" or si% onths en,e, une 30 200# an, "iabi"ities to other un,s 30 Pa/ab"e to P"ant *un, Pa/ab"e to +rno",
=A 5inutes, 5edium Ha!o! Hospita
P!" 16#; Ha!o! Hospita Ge%e!a F+%d
a.
*o+!%a E%t!ies O'toe!. /--6 (1)
+ccounts Receivab"e Patient .ervice Revenues !o recor, gross patient service revenue or onth o October at u"" rates +ccounts Receivab"e
8 0 0 0 0 8 0 0 0 0
2 ' 0 0
Patient .ervice Revenues !o recor, aount receivab"e ro 5ovar, Fe"are
2 ' 0 0
OrganiBation or charit/ care Contractua" +,Gustents +ccounts Receivab"e !o recor, contractua" a,Gustents a""oe, to 6e,icai,
# 0 0 0 # 0 0 0
or October -oubtu" +ccounts %pense +""oance or -oubtu" +ccounts
8 0 0 0 8 0 0 0
!o provi,e or ,oubtu" accounts or October (2) .a"aries %pense
; 8 0 0
Contributions Revenue !o recor, ,onate, services b/ vo"unteer nurses or
; 8 0 0
October at going sa"ar/ rates ($10000) "ess cost o ea"s serve, to vo"unteer nurses at no charge ($200) (3) P"e,ges Receivab"e Contributions Revenue
' 0 0 0 ' 0 0 0
!o recor, p"e,ges receive, ro ,onors ,uring October Cash
3 ' 0 0
P"e,ges Receivab"e !o recor, p"e,ges co""ecte, in cash ,uring October Provision or -oubtu" P"e,ges +""oance or -oubtu" P"e,ges
3 ' 0 0
8 0 0 8 0 0
!o provi,e or ,oubtu" p"e,ges or October (4) Receivab"e ro +r"ine Fa"ters +nnuit/ *un, Cash !o recor, pa/ent o +r"ine Fa"ters annuit/ or
' 0 0 ' 0 0
October
0Co%ti%+ed o% pa9e 8;8"2
© The
(@?
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
Ha!o! Hospita 0'o%'+ded2
P!" 16#; Ha!o! Hospita Ge%e!a F+%d *o+!%a E%t!ies 0'o%'+ded2 O'toe!. /--6
(') Cash
3 0 0 0
*un, 5a"ance !o recor, receipt o cash ro Char"es Fatson Restricte, *un, or ne surgica" euipent P"ant +ssets
3 0 0 0
3 0 0 0
Cash !o recor, acuisition o ne surgica" euipent
3 0 0 0
Ha!o! Hospita A!i%e E" Wate!s A%%+it3 F+%d
b.
*o+!%a E%t!3 O'toe!. /--6 +nnuit/ Pa/ab"e Pa/ab"e to enera" *un, !o recor, "iabi"it/ to enera" *un, or pa/ent o
' 0 0 ' 0 0
+r"ine Fa"ters annuit/ or October
Ha!o! Hospita Ca!es Watso% Rest!i'ted F+%d *o+!%a E%t!3 O'toe!. /--6 *un, 5a"ance Cash !o recor, pa/ent to enera" *un, or acuisition o
3 0 0 0 3 0 0 0
ne surgica" euipent
© The
#olutions Manual, Chapter !6
McGraw-Hill Companies, Inc., 2006 (@)
=A 5inutes, 5edium Wi9sta&& Fo+%datio%
P!" 16#6 Wi9sta&& Fo+%datio% State$e%t o& Cas Fo5s 0i%di!e't $etod2 Fo! )ea! E%ded *+%e ,-. /--6
&et cash provi,e, b/ operating activities 0E=iit 12
$ 2 # # 0 0 0
Cas &o5s &!o$ i%(esti%9 a'ti(ities>
+cuisition o urniture an, euipent +cuisition o "ongter investents in securities &et cash use, in investing activities
$
2 2 0 0 0 # 0 0 0 0 ( 8 2 0 0 0 )
Cas &o5s &!o$ &i%a%'i%9 a'ti(ities>
Pa/ent o "ongter ,ebt &et cash use, in inancing activities
$ 1 # 4 0 0 0 H ( 1 # 4 0 0 0 )
&et increase in cash Cash beginning o /ear Cash en, o /ear
$
2 0 0 0 0 # 3 0 0 0 0 $ # ' 0 0 0 0
H($1#4000 > $7;4000) ($17#000 > $#18000) ? $1#4000 E=iit 1 Cash "os ro operating activities:
Increase in unrestricte, net assets +,Gustents to reconci"e increase in unrestricte, net assets to net cash provi,e b/ operating activities: -epreciation e%pense Increase in accounts receivab"e (net) Increase in unbi""e, contract revenue an, reibursab"e grant costs Increase in shortter prepa/ents Increase in accounts pa/ab"e an, accrue, "iabi"ities Increase in restricte, grant a,vances &et cash provi,e, b/ operating activities
© The
(@@
$ 1 8 8 0 0 0
1 4 8 0 ( 3 2 0 ( 1 ; # 0 ( 4 0 # 0 0 1 0 2 0
0 0 0 0 0 0
0 0 ) 0 ) 0 ) 0 0 $ 2 # # 0 0 0
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
=A 5inutes, 5edium ?id4Cit3 Spo!ts C+
P!" 16#@ ?id4Cit3 Spo!ts C+
a.
*o+!%a E%t!ies Fo! )ea! E%ded *+%e ,-. /--6 (1) Cash
2 0 0 0 0 -ues Revenue
(2) Cash
2 0 0 0 0 2 8 0 0 0
.nacJ 5ar an, .o,a *ountain Revenue (3) Cash
2 8 0 0 0 # 0 0 0
Interest Revenue (4) C"ubhouse %pense Inventories enera" an, +,inistrative %pense +ccounts Pa/ab"e (') +ccounts Pa/ab"e
# 0 0 0 1 7 0 0 0 2 # 0 0 0 1 1 0 0 0 ' 4 0 0 0 ' ' 0 0 0
Cash (#) +ssessents Receivab"e
' ' 0 0 0 1 0 0 0 0
Contributions Revenue (7) Cash
1 0 0 0 0 ' 0 0 0
its Revenue (8) C"ubhouse %pense .nacJ 5ar an, .o,a *ountain %pense enera" an, +,inistrative %pense +ccuu"ate, -epreciation o 5ui",ing
' 0 0 0 ; 0 0 0 2 0 0 0 1 0 0 0 4 0 0 0
+ccuu"ate, -epreciation o *urniture an, uipent (;) .nacJ 5ar an, .o,a *ountain %pense ($'000 > $2#000 $1000)
8 0 0 0
3 0 0 0 0
Inventories
3 0 0 0 0
© The
#olutions Manual, Chapter !6
McGraw-Hill Companies, Inc., 2006 AA
?id4Cit3 Spo!t C+ 0'o%'+ded2
P!" 16#@ ?id4Cit3 Spo!ts C+
b.
State$e%t o& A'ti(ities Fo! )ea! E%ded *+%e ,-. /--6 Revenues an, gains: -ues .nacJ bar an, so,a ountain Interest its an, contributions ($10000 > $'000) !ota" revenues an, gains %penses: C"ubhouse ($17000 > $;000) .nacJ bar an, so,a ountain ($2000 > $30000) enera" an, a,inistrative ($11000 > $1000) !ota" e%penses (-ecrease) in unrestricte, net assets Cuu"ative increase in net assets beginning o /ear Cuu"ative increase in net assets en, o /ear
$
$ $
$ $ $
2 0 0 2 8 0 # 0 1 ' 0 # ; 0
0 0 0 0 0
0 0 0 0 0
2 3 1 7 ( 1 1
0 0 0 0 0 0 0
0 0 0 0 0 ) 0 0
# 2 2 0 1 2 1
0 0 0 0 0 0 0
?id4Cit3 Spo!ts C+ State$e%t o& Fi%a%'ia Positio% *+%e ,-. /--6 Assets
Current assets: Cash ($;000 > $20000 > $28000 > $#000 $''000 > $'000) Investents in securities +ssessents receivab"e Inventories !ota" current assets P"ant assets: $4000 > $4#000 > $8000) &et p"ant assets !ota" assets
$
1 3 0 0 ' 8 0 0 1 0 0 0 1 0 0 8 2 0 0
0 0 0 0 0
$ 2 1 $ $ 1
1 # ' 2 8 4 2
0 0 0 0 0 0 0
$
1 1 0 0 0
$ $ 1
0 4 4 8 8 0 2
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Liaiities 7 Net Assets
Current "iabi"ities: +ccounts pa/ab"e ($12000 > $'4000 $''000) &et assets: 6ebership certiicates 100 at $1000 each (no change ,uring the /ear) Cuu"ative increase in net assets !ota" net assets (unrestricte,) !ota" "iabi"ities = net assets
© The
A(
$ 1 0 1 $ 1 1 $ 1 2
0 1 1 2
0 0 0 0
0 0 0 0
0 0 0 0
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
>A 5inutes, trong State U%i(e!sit3
P!" 16# State U%i(e!sit3 *o+!%a E%t!ies Fo! )ea! E%ded *+%e ,-. /--6 U%!est!i'ted
T!a%sa'tio% %o"
(1)
Led9e! a''o+%ts
Rest!i'ted
F+%d
F+%d
F+%d
d! 0'!2
d! 0'!2
d! 0'!2
Cash *un, 5a"ance
' 0 0 0 0 ( ' 0 0 0 0 )
Investent in .ecurities Cash (2)
Cash
1 # 8 # 0 0 0
($1#8#000 > $##000)A Revenues
1 ' 8 0 0 0 ( 1 ' 8 0 0 0 )
Cash
3 4 ; 0 0 0
+""oance or -oubtu" +ccounts +ccounts Receivab"e %penses +""oance or -oubtu" +ccounts Cash
(#)
3 0 0 0 ( 3 0 0 0 )
( # 0 0 0 )
Cash .tate +ppropriation Receivab"e
7 ' 0 0 0 ( 7 ' 0 0 0 )
.tate +ppropriation Revenues
' 0 0 0 0 ( ' 0 0 0 0 )
Receivab"e
Cash Revenues
(7)
1 0 0 0 ( 3 ' 0 0 0 0 )
# 0 0 0
Revenues (')
# # 0 0 0 1 4 8 0 0 0 (1 ; 0 0 0 0 0 )
Cash -eerre, Revenues
(4)
2 ' 0 0 0 ( 2 ' 0 0 0 )
Cash
2 # 0 0 0
Investents in .ecurities *un, 5a"ance
( 2 1 0 0 0 ) ( ' 0 0 0 )
Cash
1 ; 0 0
*un, 5a"ance (8)
' 0 0 0 0 ( ' 0 0 0 0 ) ' 0 0 0 0 ( ' 0 0 0 0 )
-eerre, Revenue +ccounts Receivab"e @$1;00000
(3)
E%do5$e%t
%penses Cash ($1777000 $';000) +ccounts Pa/ab"e
( 1 ; 0 0 ) 1 7 7 7 0 0 0 (1 7 1 8 0 0 0 ) ( ' ; 0 0 0 ) 0Co%ti%+ed o% pa9e 8;B"2
© The
#olutions Manual, Chapter !6
McGraw-Hill Companies, Inc., 2006 A
State U%i(e!sit3 0'o%'+ded2
P!" 16# State U%i(e!sit3 *o+!%a E%t!ies 0'o%'+ded2 Fo! )ea! E%ded *+%e ,-. /--6 U%!est!i'ted
T!a%sa'tio% %o"
(;)
Led9e! a''o+%ts
F+%d
F+%d
d! 0'!2
d! 0'!2
*un, 5a"ance Revenues
1 3 0 0 0 ( 1 3 0 0 0 )
(11) Cash *un, 5a"ance
A8
F+%d
1 3 0 0 0 ( 1 3 0 0 0 )
Cash
E%do5$e%t
d! 0'!2
%pen,itures Cash
(10) +ccounts Pa/ab"e
© The
Rest!i'ted
4 ' 0 0 0 ( 4 ' 0 0 0 ) 7 0 0 0 ( 7 0 0 0 )
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
>A 5inutes, trong Resta(e% Hospita
P!" 16#B Resta(e% Hospita *o+!%a E%t!ies Fo! )ea! E%ded e'e$e! ,1. /--6 Pa%t
T!a%sa'tio% %o"
Led9e! a''o+%ts
(1)
+ccounts Receivab"e Patient .ervice Revenues
(2)
-oubtu" +ccounts %pense Contractua" +,Gustents +""oance or -oubtu" +ccounts +ccounts Receivab"e
Ge%e!a
Repa'e$e%t a%d
E%do5$e%t
F+%d
E=pa%sio% F+%d
F+%d
d! 0'!2
d! 0'!2
d! 0'!2
1 1 0 1 0 0 0 (1 1 0 1 0 0 0 ) 3 0 0 0 0 1 ' 0 0 0 ( 3 0 0 0 0 ) ( 1 ' 0 0 0 )
(3)
6ortgage 5on,s Pa/ab"e Cash
1 8 0 0 0 ( 1 8 0 0 0 )
(4)
Cash nrestricte, it Revenue
' # ' 0 0 ( ' 0 0 0 0 )
nrestricte, Revenue ro n,oent *un,
( # ' 0 0 )
Cash *un, 5a"ance
# ' 0 0 ( # ' 0 0 )
*un, 5a"ance
# ' 0 0
Cash (')
*un, 5a"ance Cash uipent *un, 5a"ance -esignate, or P"ant +ssets Cash +ccuu"ate, -epreciation o uipent ($24000 $2400) A 5inutes, trong Li!a Coe9e
P!" 16#1Li!a Coe9e *o+!%a E%t!ies Fo! )ea! E%ded *+%e ,-. /--6 U%!est!i'ted
T!a%sa'tio% %o"
Led9e! a''o+%ts
0 3 ' 1
0 # 0 3
F+%d
F+%d
d! 0'!2
d! 0'!2
(1)
Cash +ccounts Receivab"e !uition an, *ees !uition an, *ees Revenue -eerre, Revenues
(2)
-eerre, Revenues !uition an, *ees Revenue
2 ' 0 0 0 ( 2 ' 0 0 0 )
(3)
+""oance or -oubtu" +ccounts ($3#0000 > $1'000 $3#2000) +ccounts Receivab"e !uition an, *ees
1 3 0 0 0 ( 1 3 0 0 0 )
-oubtu" !uition an, *ees %pense @$10000 ($1'000 $13000)A +""oance or -oubtu" +ccounts
3 ( (2 (
0 2 0 8
0 0 0 0
0 0 0 0
0 0 ) 0 ) 0 )
8 0 0 0 ( 8 0 0 0 )
(4)
.tate +ppropriation Receivab"e overnent rants Revenue
# 0 0 0 0 ( # 0 0 0 0 )
(')
Cash Private its Revenue
8 0 0 0 0 ( 8 0 0 0 0 )
*un, 5a"ance Cash
3 0 0 0 0 ( 3 0 0 0 0 )
(#)
(7)
Rest!i'ted
Cash *un, 5a"ance
1 8 0 0 0 ( 1 8 0 0 0 )
Cash Investent in .ecurities *un, 5a"ance
3 1 0 0 0 ( 2 ' 0 0 0 ) ( # 0 0 0 )
Investents in .ecurities Cash
4 0 0 0 0 ( 4 0 0 0 0 )
,ucationa" an, enera" %penses +ccounts Pa/ab"e
2 ' 0 0 0 0 0 (2 ' 0 0 0 0 0 )
+ccounts Pa/ab"e ($100000 > $2'00000 $7'000) Cash
2 ' 2 ' 0 0 0 (2 ' 2 ' 0 0 0 )
0Co%ti%+ed o% pa9e 86,"2
© The
#olutions Manual, Chapter !6
McGraw-Hill Companies, Inc., 2006 A>
Li!a Coe9e 0'o%'+ded2
P!" 16#1Li!a Coe9e *o+!%a E%t!ies 0'o%'+ded2 Fo! )ea! E%ded *+%e ,-. /--6 U%!est!i'ted
T!a%sa'tio% %o"
F+%d
F+%d
d! 0'!2
d! 0'!2
(8)
+ccounts Pa/ab"e Cash
(;)
Pa/ab"e to Other *un,s Cash
4 0 0 0 0 ( 4 0 0 0 0 )
(10)
,ucationa" an, enera" %penses ($40000 % K) .hort!er Prepa/ents
1 0 0 0 0 ( 1 0 0 0 0 )
© The
A?
Led9e! a''o+%ts
Rest!i'ted
' 0 0 0 ( ' 0 0 0 )
McGraw-Hill Companies, Inc., 2006 Modern Advanced Accountin, !0"e
>A 5inutes, trong isad(a%ta9ed Cid!e% Asso'iatio%
P!" 16#11 isad(a%ta9ed Cid!e% Asso'iatio% State$e%t o& A'ti(ities Fo! )ea! E%ded *+%e ,-. /--6
Changes in unrestricte, net assets: Revenue an, gains: Contributions 6ebership ,ues
$ 3 2 0 0 0 0 2 ' 0 0 0
Progra service ees Investent revenue an, gains
3 0 0 0 0 1 0 0 0 0
!ota" unrestricte, revenues an, gains %penses: Progra 6anageent an, genera" ($4'000 > $2000)
$ 3 8 ' 0 0 0 $ 2 7 0 0 0 0 4 7 0 0 0
*un, raising
8 0 0 0
!ota" e%penses
$ 3 2 ' 0 0 0
Increase in unrestricte, net assets Changes in teporari"/ restricte, net assets: Contributions
$
# 0 0 0 0
$
1 ' 0 0 0
6anageent an, genera" e%penses *un,raising e%penses
( 4 0 0 0 ) ( 1 0 0 0 )
Increase in teporari"/ restricte, net assets Increase in net assets &et assets beginning o /ear ($12000 > $2#000 >
$ $
$3000)
1 0 0 0 0 7 0 0 0 0 4 1 0 0 0
&et assets en, o /ear
$ 1 1 1 0 0 0
isad(a%ta9ed Cid!e% Asso'iatio% State$e%t o& Fi%a%'ia Positio% *+%e ,-. /--6 Assets
Cash ($40000 > $;000)
$
5euest an, interest receivab"e ($'000 > $1000) P"e,ges receivab"e (net) ($12000 $3000)
4 ; 0 0 0 # 0 0 0 ; 0 0 0
Investents in securities at air va"ue
1 0 0 0 0 0
!ota" assets
$ 1 # 4 0 0 0
Liaiities 7 Net Assets
$1000) -eerre, revenues !ota" "iabi"ities &et assets: nrestricte, ($38000 > $#0000) !eporari"/ restricte, ($3000 > $10000) !ota" net assets !ota" "iabi"ities = net assets
' 1 0 0 0 2 0 0 0
$
' 3 0 0 0
$
; 8 0 0 0 1 3 0 0 0
$ 1 1 1 0 0 0 $ 1 # 4 0 0 0
© The
#olutions Manual, Chapter !6
$
McGraw-Hill Companies, Inc., 2006 A)
