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nsactions. However, even beginnin ne Society has performed the foll e accounting equation. erous cash donation of $25,000 wa Society purchased a new piece c or it in 90 days, creating a liability. Transa resultin of $2,0 ent: Debits and

nsactions. However, even beginnin ne Society has performed the foll e accounting equation. erous cash donation of $25,000 wa Society purchased a new piece c or it in 90 days, creating a liability. Transa resultin of $2,0 ent: Debits and

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Module Overview: Understanding Financial Transactions Using the Accounting Equation** This module provides a foundation for the next segment on financial analysis. Students enrolling in an accounting course will gain insights into how organizations of various kinds record, classify, and report their transactions. Even beginners can grasp financial statements by studying these fundamentals. **Assignments** **1. The Seaside Humane Society Transactions** Summarize the following transactions using the accounting equation. - **Transaction A:** A generous cash donation of $25,000 was received. - **Transaction B:** The Society purchased a new piece of medical equipment (an asset) for $10,000 and will pay for it in 90 days, creating a liability. - **Transaction C:** Payroll was distributed, resulting in a decrease of cash in the amount of $2,000. Determine the balance sheet totals after these transactions, assuming the Society had initial balances of zero. **2. The Little League Organization Transactions** Summarize the following transactions using the accounting equation. - **Transaction A:** Registration for the upcoming baseball season generated $35,600 in revenues. All fees are paid in cash. - **Transaction B:** The League purchased new baseballs and uniforms on credit from a local sports store. The transaction total was $12,453. - **Transaction C:** Landscaping services amounting to $5,632 were purchased with cash to prepare the fields for play. Evaluate the balance sheet totals after these transactions, assuming the League had initial balances of zero. **3. Local Homeless Shelter Transactions** Summarize the following transactions using the accounting equation. **Table Analysis** **TABLE 25.4** **New Town Finance Department: Debits and Credits** | | New Town Finance Department | |-----------------------------------|----------------------------------| | **Date** | **Transaction** | **Amount (Debit)** | **Amount (Credit)** | |-----------------------------------|----------------------------------|--------------------|---------------------| | 2-Jan | Received $10,000 in education revenues from state | | | - Cash - State Education | $10,000 | | | | - Revenues, education | | $10,000 | | 5-Jan | Spent $5,000 in cash on supplies | | | - Expenses, Supplies | $5,000 | | | | - Cash | | $5,000 | | 8-Jan
Transcribed Image Text:**Module Overview: Understanding Financial Transactions Using the Accounting Equation** This module provides a foundation for the next segment on financial analysis. Students enrolling in an accounting course will gain insights into how organizations of various kinds record, classify, and report their transactions. Even beginners can grasp financial statements by studying these fundamentals. **Assignments** **1. The Seaside Humane Society Transactions** Summarize the following transactions using the accounting equation. - **Transaction A:** A generous cash donation of $25,000 was received. - **Transaction B:** The Society purchased a new piece of medical equipment (an asset) for $10,000 and will pay for it in 90 days, creating a liability. - **Transaction C:** Payroll was distributed, resulting in a decrease of cash in the amount of $2,000. Determine the balance sheet totals after these transactions, assuming the Society had initial balances of zero. **2. The Little League Organization Transactions** Summarize the following transactions using the accounting equation. - **Transaction A:** Registration for the upcoming baseball season generated $35,600 in revenues. All fees are paid in cash. - **Transaction B:** The League purchased new baseballs and uniforms on credit from a local sports store. The transaction total was $12,453. - **Transaction C:** Landscaping services amounting to $5,632 were purchased with cash to prepare the fields for play. Evaluate the balance sheet totals after these transactions, assuming the League had initial balances of zero. **3. Local Homeless Shelter Transactions** Summarize the following transactions using the accounting equation. **Table Analysis** **TABLE 25.4** **New Town Finance Department: Debits and Credits** | | New Town Finance Department | |-----------------------------------|----------------------------------| | **Date** | **Transaction** | **Amount (Debit)** | **Amount (Credit)** | |-----------------------------------|----------------------------------|--------------------|---------------------| | 2-Jan | Received $10,000 in education revenues from state | | | - Cash - State Education | $10,000 | | | | - Revenues, education | | $10,000 | | 5-Jan | Spent $5,000 in cash on supplies | | | - Expenses, Supplies | $5,000 | | | | - Cash | | $5,000 | | 8-Jan
### Government and Nonprofit Accounting #### Transactions: **Transaction A:** Utility bills were paid using cash and totaled $1,345. **Transaction B:** The city provides a subsidy of $1 for each breakfast provided by the shelter. A bill was generated and delivered to the city for 6,000 eligible meals. **Transaction C:** Volunteers and staff will be painting the inside of the shelter this weekend. Supplies were purchased on credit from the local hardware store, and the total cost was $1,500. **Transaction D:** Cash was used to pay the credit debt on the paint and supplies. #### Questions: 1. **What are the totals in the accounting equation after these transactions?** 2. **What are the ending balances on the balance sheet if the shelter had the following beginning balances:** - Assets = $20,000 - Liabilities = $5,000 - Net assets = $15,000 #### Additional Readings - Coe, C. K. (2007). *Governmental and nonprofit financial management*. Vienna, VA: Management Concepts. - Finkler, S. A. (2010). *Financial management for public, health, and not-for-profit organizations* (3rd ed.). Upper Saddle River, NJ: Prentice Hall. **Note:** This content is provided for educational purposes only, specifically for the use of Grand Canyon University students and faculty.
Transcribed Image Text:### Government and Nonprofit Accounting #### Transactions: **Transaction A:** Utility bills were paid using cash and totaled $1,345. **Transaction B:** The city provides a subsidy of $1 for each breakfast provided by the shelter. A bill was generated and delivered to the city for 6,000 eligible meals. **Transaction C:** Volunteers and staff will be painting the inside of the shelter this weekend. Supplies were purchased on credit from the local hardware store, and the total cost was $1,500. **Transaction D:** Cash was used to pay the credit debt on the paint and supplies. #### Questions: 1. **What are the totals in the accounting equation after these transactions?** 2. **What are the ending balances on the balance sheet if the shelter had the following beginning balances:** - Assets = $20,000 - Liabilities = $5,000 - Net assets = $15,000 #### Additional Readings - Coe, C. K. (2007). *Governmental and nonprofit financial management*. Vienna, VA: Management Concepts. - Finkler, S. A. (2010). *Financial management for public, health, and not-for-profit organizations* (3rd ed.). Upper Saddle River, NJ: Prentice Hall. **Note:** This content is provided for educational purposes only, specifically for the use of Grand Canyon University students and faculty.
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