Question

Rainforest Conservation Society is a not-for-profit organization that dedicated to the preservation of Central America’s rainforests. Prepare journal entries for each of the following activities:

Required:

Prepare journal entries for each of the following activities:

1. The organization recognized the following revenues (the contributions are all on account and the investment returns are in cash):

Revenues - Contributions (Unrestricted)	$1,143,200
Revenues - Contributions (Temporarily Restricted)	114,320
Revenues - Contributions (Permanently Restricted)	24,600
Revenues - Investment (Unrestricted)	12,450
Revenues - Investment (Temporarily Restricted)	9,790
Revenues - Investment (Permanently Restricted)	16,320

2. Rainforest Conservation Society recognized Program expenses of $996,000 and Expenses related to Support activities of $217,600, both on account. $86,000 of the Program Expenses was paid from Temporarily Restricted funds and used in compliance with the donor’s stipulations.

3. The organization purchased $52,300 of long-term assets during the year and recorded $40,800 of depreciation expense (record the net increase in long-term assets to the PPE, net account).

4.Rainforest Conservation Society purchased $51,700 of investments during the year.

5.The organization collected $1,201,000 of Contributions Receivable and used the cash to pay $1,163,300 of accounts payable.

6.The organization repaid $50,200 in long-term debt.

2. Rainforest Conservation Society reports the following trial balance at the beginning of the year:

	DR		CR
Cash	$   84,600
Investments	878,500
Contributions Receivable	267,400
PPE, net	711,500
Payables			$ 212,000
Long-term Liabilities			361,000
Net Assets - Unrestricted			633,000
Net Assets - Temporarily Restricted			473,000
Net Assets - Permanently Restricted			263,000
	$1,942,000		$1,942,000

Required: Prepare the Statement of Activities and the Statement of Financial Position at year-end.

Answer 1

	Non Profit Entries
	Particulars	DR	CR
1	Cash A/c	38560
	Contributions Receivable	1282120
	To Revenues - Contributions (unrestricted)		1143200
	To Revenues - Contributions (Temporarily restricted)		114320
	To Revenues - Contributions (Permanently restricted)		24600
	To Revenues - Investments (unrestricted)		12450
	To Revenues - Investments (Temporarily restricted)		9790
	To Revenues - Investments (Permanently restricted)		16320
2	Program Expenses	996000
	Support Activities Expenses	217600
	To Accounts Payable		1213600
3	Net Assets - Temporarily Restricted	86000
	Accounts Payable		86000
4	Cash A/c	1201000
	To contributions Receivable		1201000
5	Accounts payable	1163300
	To Cash		1163300
6	Long term Assets	52300
	To cash A/c		52300
7	Depreciation	40800
	To Long term Assets		40800
8	Long term Debt	50200
	To Cash		50200

Statement of Finacial Position
Particulars	DR	CR
Cash	58360
Investments	878500
Contributions Receivable	348520
PPE,net	723000
Accounts Payable		348300
Long Term Liabilities		310800
Net Assets - unrestricted		547000
Net Assets - Temporarily restricted		473000
Net Assets - Permanently restricted		263000
Retained Earnings		66280
Total	2008380	2008380
Income Statement
Particulars	Amount($)
Revenues	1320680
Less: Expenses
Program Expenses	996000
Support Activity Expenses	217600
Depreciation	40800
Net Income	66280