Taking Stock of Where You Are: The Balance Sheet Situation Suppose a new nonprof
ID: 2546845 • Letter: T
Question
Taking Stock of Where You Are: The Balance Sheet Situation Suppose a new nonprofit organization named the Concern for Animal Shelter and Habitats (CASH) was started up on January in 2015. The organization places homeless animals in permanent homes. You are a financial manager. You need to record financial transactions on Transaction Work Sheet during the fiscal year, and then need to prepare (or generate) a Statement of Financial Position (i.e. Balance Sheet) based on the Transaction Work Sheet at the end of the fiscal year. Transactions during this fiscal year (January 1 to December 31, 2015) of operations were as follows th e opening balances (or beg Transaction 0. Because the CASH is a new balances) for all accounts were S0 Transaction 1. The CASH received a donation, $30,000, from IUSB. Because IUSB did not impose any restriction on the donation, CASH can use the donation for any purpose. Transaction 2. The CASH borrowed $60,000 from the Bank of America. The CASH wil1 pay back equal amount per year to the Bank for three year to pay off the loan. The Bank says that if he loan have paid back for thre e years, the Bank does not charge any interest. Transaction 3. The CASH bought 50 bags of dog food and 25 bags of cat food. Dog foot costs $20 per bag, while cat food costs $39 per bag. The pet food was bought on credit (i.e. CASH has not yet paid for the supplies). Transaction 4. The CASH bought a sign to hang in front of it building. The sign cost $5,000 and CASH paid for it when it was received Transaction 5. The CASH purchased and received an office computer, server, printer, and copier for 2016 operation. The total cost of the equipment was $10,000, half of which was paid and the other half was still owed Question 1. Complete the Transaction Work Sheet. Provide your transaction work sheet completed. (Note: Use the template 1). Question 2. Using the ending balances of transaction work sheet, prepare (or generate) a Statement of Financial Position (i.e. Balance Sheet) for the CASH for 2015. (Note: Use the template 2).Explanation / Answer
1. Transaction Worksheet.
$
Assets
Liabilities and Net Assets
Liabilities
Net Asset.
A
B
C
D
E
F
G
H
I
J
Opening Balance
0
0
0
0
0
0
0
0
0
0
Transaction 1
30,000
30,000
Transaction 2
60,000
20,000
40,000
Transaction 3
1,975
1,975
Transaction 4
-5,000
50,00
Transaction 5
-5,000
10,000
5,000
Closing Balance
80,000
1,975
10,000
50,00
6,975
20,000
40,000
30,000
0
0
Colum
Explanation
A
Cash
C
Suppliers
D
Office equipment
E
Office Sign
F
Accounts payable
G
Current loan portion
H
Long-term loan portion
I
Unrestricted
J
Temporary restricted
K
Permanently Restricted
2. Balance sheet
Asset
Current Asset
Cash
$ 80,000.00
Suppliers
$ 1,975.00
Total Current Asset
$ 81,975.00
Long Term Asset
Office Equipments
$ 10,000.00
Office sign
$ 5,000.00
Total long term Asset
$ 15,000.00
Total Asset
$ 96,975.00
Liabilities & Net Assets
Liabilities
Short term liabilities
Accounts payable
$ 6,975.00
Loan payable
$ 20,000.00
Total Short tem liability
$ 26,975.00
Loan payable
$ 40,000.00
Total long term liability
Total Liability
$ 40,000.00
$ 66,975.00
Net Asset
Un restricted
$ 30,000.00
temporary restricted
$ -
permanently Restricted
$ -
Total Net Asset
$ 30,000.00
Total liability &Net Asset
$ 96,975.00
$
Assets
Liabilities and Net Assets
Liabilities
Net Asset.
A
B
C
D
E
F
G
H
I
J
Opening Balance
0
0
0
0
0
0
0
0
0
0
Transaction 1
30,000
30,000
Transaction 2
60,000
20,000
40,000
Transaction 3
1,975
1,975
Transaction 4
-5,000
50,00
Transaction 5
-5,000
10,000
5,000
Closing Balance
80,000
1,975
10,000
50,00
6,975
20,000
40,000
30,000
0
0
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.