Required: a. Prepare closing entries for the year-end, using separate entries fo
ID: 2525930 • Letter: R
Question
Required:
a. Prepare closing entries for the year-end, using separate entries for each net asset classification.
b. Prepare a Statement of Activities for the year ended December 31, 2017.
c. Prepare a Statement of Financial Position as of December 31, 2017.
a1) - Record the year end closing entry for Unrestricted net assets
a2) - Record the year end closing entry for Temporarily restricted net assets
a3) - Record the year end closing entry for Permanently restricted net assets
Trial Balance—December 31, 2017 Debits Credits Accounts payable $ 23,500 Accounts receivable (net) $ 45,000 Accrued interest receivable 15,500 Accumulated depreciation 3,250,500 Cash 109,000 Contributed services—unrestricted 25,000 Contributions—unrestricted 2,300,000 Contributions—temporarily restricted 780,000 Contributions—permanently restricted 2,650,000 Current pledges receivable (net) 75,000 Education program expenses 1,505,000 Fund-raising expense 116,000 Grant revenue—temporarily restricted 86,000 Training seminar expenses 4,456,000 Land, buildings, and equipment 5,500,000 Long-term investments 2,690,000 Management and general expense 365,000 Net assets: Unrestricted (January 1) 458,000 Temporarily restricted (January 1) 659,000 Permanently restricted (January 1) 1,250,000 Net gains on endowmentinvestments—unrestricted 17,500 Noncurrent pledge receivables (net) 365,000 Program service revenue—unrestricted 5,592,000 Postemployment benefits payable
(noncurrent) 188,000 Reclassifications: Satisfaction of program restrictions 250,000 Satisfaction of time restrictions 205,000 Satisfaction of program restrictions 250,000 Satisfaction of time restrictions 205,000 Research program expenses 1,256,000 Short-term investments 750,000 Supplies inventory 32,000 Totals $ 17,734,500 $ 17,734,500 Required Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs belaw. ?.»repero szetement of Act N estor the yoerendad December 31 2017. Journal cntry workshcct Racor d the yeor end dlocing entry for Urestricted ne nt Required D
Explanation / Answer
Temporarily Restricted Net Assets – Reclassification Out 475000
Unrestricted Net Assets – Reclassification In 475000
To record reclassification of net assets for which the temporary restriction is satisfied
Since no individual transactions are listed, checking account need not be opened.
Statement of Activities
for the year ended 31st December 2015
Particulars
Unrestricted
Temporarily Restricted
Permanently Restricted
Total
REVENUE
Contributions
2,250,500
777,000
2,650,000
5,677,500
Program Fees
5,595,000
-
-
5,595,000
Contributed services
25,000
-
-
25,000
Grants
-
86,000
-
86,000
Net gain on endowment investments
17,500
-
-
17,500
Reclassification when net assets are released from restrictions
475,000
(475,000)
-
-
TOTAL
8,363,000
388,000
2,650,000
11,401,000
LESS: EXPENSES
Education Program Expense
1,505,000
-
-
1,505,000
Fund Raising Expense
116,000
-
-
116,000
Training Seminar Expense
4,456,000
-
-
4,456,000
Management and General Expense
365,000
-
-
365,000
Research Program Expense
1,256,000
-
-
1,256,000
Change in Net Assets
665,000
388,000
2,650,000
3,703,000
Add: Net Assets (Opening)
358,000
759,000
1,250,000
2,367,000
Net Assets (Closing)
1,023,000
1,147,000
3,900,000
6,070,000
Statement of Financial Position
as at 31st December 2015
Assets
Amt.
Liabilities & Net Assets
Amt.
Cash
109,000
Net Assets - Closing
Accounts Receivable
75,000
Unrestricted
1,023,000
Accrued Interest Receivable
15,500
Temporarily Restricted
1,147,000
Current Pledges Receivable
45,000
Permanently Restricted
3,900,000
Short term investments
750,000
Accounts Payable
88,000
Supplies inventory
32,000
Accumulated Depreciation
3,300,000
Noncurrent pledge receivables
365,000
Post employment benefits payable
123,500
Land, Building & Equipment
5,500,000
Long Term Investment
2,690,000
9,581,500
9,581,500
Statement of Activities
for the year ended 31st December 2015
Particulars
Unrestricted
Temporarily Restricted
Permanently Restricted
Total
REVENUE
Contributions
2,250,500
777,000
2,650,000
5,677,500
Program Fees
5,595,000
-
-
5,595,000
Contributed services
25,000
-
-
25,000
Grants
-
86,000
-
86,000
Net gain on endowment investments
17,500
-
-
17,500
Reclassification when net assets are released from restrictions
475,000
(475,000)
-
-
TOTAL
8,363,000
388,000
2,650,000
11,401,000
LESS: EXPENSES
Education Program Expense
1,505,000
-
-
1,505,000
Fund Raising Expense
116,000
-
-
116,000
Training Seminar Expense
4,456,000
-
-
4,456,000
Management and General Expense
365,000
-
-
365,000
Research Program Expense
1,256,000
-
-
1,256,000
Change in Net Assets
665,000
388,000
2,650,000
3,703,000
Add: Net Assets (Opening)
358,000
759,000
1,250,000
2,367,000
Net Assets (Closing)
1,023,000
1,147,000
3,900,000
6,070,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.