Question

In: Accounting

The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $111,000; contributions receivable (net)...

The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $111,000; contributions receivable (net) of $211,000; investments of $311,000; and land, buildings, and equipment of $211,000. In addition, its unrestricted net assets were $422,000, temporarily restricted net assets were $111,000, and permanently restricted net assets were $311,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted.

During the current year, the entity has the following transactions:

  • Computed interest of $31,000 on the contributions receivable.
  • Received cash of $111,000 on the contributions and wrote off another $5,100 as uncollectible.
  • Received unrestricted cash gifts of $191,000.
  • Paid salaries of $101,000 with $26,000 of that amount coming from restricted funds.
  • Received a cash gift of $23,000 that the entity must convey to another charity. However, Watson has the right to give the money to a different organization if it so chooses.
  • Bought a building for $511,000 by signing a long-term note for $455,500 and using restricted funds for the remainder.
  • Collected membership dues of $41,000. Individuals receive substantial benefits from the memberships.
  • Received income of $41,000 generated by the permanently restricted net assets.
  • Paid rent of $23,000, advertising of $26,000, and utilities of $27,000.
  • Received an unrestricted pledge of $211,000; it will be collected in five years. The organization expects to collect the entire amount. Present value is $160,000. It then recognized interest of $7,100 for the year.
  • Computed depreciation as $51,000.
  • Paid $26,000 in interest on the note signed to acquire the building.

  1. Prepare a statement of activities for this entity for this year.

  2. Prepare a statement of financial position for this entity at the end of this year.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $105,000; contributions receivable (net)...
The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $105,000; contributions receivable (net) of $205,000; investments of $305,000; and land, buildings, and equipment of $205,000. In addition, its unrestricted net assets were $410,000, temporarily restricted net assets were $105,000, and permanently restricted net assets were $305,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for...
The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $109,000; contributions receivable (net)...
The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $109,000; contributions receivable (net) of $209,000; investments of $309,000; and land, buildings, and equipment of $209,000. In addition, its unrestricted net assets were $418,000, temporarily restricted net assets were $109,000, and permanently restricted net assets were $309,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for...
The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $123,000; contributions receivable (net)...
The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $123,000; contributions receivable (net) of $223,000; investments of $323,000; and land, buildings, and equipment of $223,000. In addition, its unrestricted net assets were $446,000, temporarily restricted net assets were $123,000, and permanently restricted net assets were $323,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for...
The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net)...
The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose restricted...
The Edison Foundation, a not-for-profit organization, begins the fiscal year with $200,000 cash, Net Pledges Receivable...
The Edison Foundation, a not-for-profit organization, begins the fiscal year with $200,000 cash, Net Pledges Receivable of $200,000, Investments of $300,000 and PPE of $200,000. 80% of the net assets are Without donor restrictions (all Undesignated). All net assets with donor restrictions are Purpose restricted. During the year the foundation had the following transactions: a. Received cash of $100,000 on the pledges and wrote off another $4,000 as uncollectible. b. Received $200,000 in cash gifts that are unconditional and not...
The Ombudsman Foundation is a private not for profit organization providing training in dispute resolution and...
The Ombudsman Foundation is a private not for profit organization providing training in dispute resolution and conflict management. The Foundation had the following preclosing trial balance at December 31, 2017, the end of its fiscal year: Trial Balance December 31, 2017________________________________Debits_____________Credits Accounts payable______________credit_______________________________23500 Accounts receivable (net) debit_______________45000 Accrued interest receivable debit______________15500 Accumulated depreciation ______credit______________________________________________3250500 Cash___debit__________________________________109000 Contributed services unrestricted____credit____________________________________________25000 Contributed unrestricted____credit____________________________________________________2300000 Contributions temporarily restricted______credit__________________________________________780000 Contributions permanently restricted_____credit__________________________________________2650000 Current pledges receivable (net)______debit_______________75000 Education program expenses____debit___________________1505000 Fund raising expense_____debit________________________116000 Grant revenue temporarily restricted____credit____________________________________________86000...
The University of Danville is a private not-for-profit university that starts the current year with $700,000...
The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must be held permanently. The following transactions occurred during the year. Charged students $1.2 million for tuition and fees. Received a donation of equity investments that had cost the owner $100,000 but is worth $300,000 currently. According to the terms...
You are preparing a statement of activities for the University of Richland, a private not-for-profit entity....
You are preparing a statement of activities for the University of Richland, a private not-for-profit entity. The following questions should be viewed as independent of each other. Part 1 During the current year, a donor gives $386,000 in cash to the school and stipulates that it must hold this money forever. However, any investment income earned on this money must be used for faculty salaries. During the current year, the investment earned $42,000 and, of that amount, the school has...
A private not-for-profit entity is working to create a cure for a deadly disease. The charity...
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $739,000. Of this amount, unrestricted net assets total $413,000, temporarily restricted net assets total $213,000, and permanently restricted net assets total $113,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net...
A private not-for-profit entity is working to create a cure for a deadly disease. The charity...
A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $775,000. Of this amount, unrestricted net assets total $425,000, temporarily restricted net assets total $225,000, and permanently restricted net assets total $125,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT