Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2017, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. Statements of financial position for both charities at that date appear below.The buildings and equipment reported by Help & Save have a fair value of $900,000. The buildings and equipment reported by Swim For Safety have a fair value of $730,000.Assume Help & Save pays $1 million in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained?Assume Help & Save pays $990,000 in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained?Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help–Swim–Save. A new governing body will be formed to manage and operate this new organization. What balances will appear on the combined balance sheet immediately after control is gained? SWIM FOR SAFETYStatement of Financlal PositionJanuary 1, 2017Assets$ 500,000210,000170,000590,000CashContributions receivable (net).Investments .Buildings & equipment (net)Total assets$1,470,000LlabilitlesAccounts payable and accrued liabilities.Notes payable....$ 70,000620,000Total liabilities$ 690,000Net AssetsUnrestricted..$ 420,000Temporarily restrictedPermanently restricted..190,000170,000Total net assets...$ 780,000$1,470,000Total liabilities and net assets. HELP & SAVEStatement of FInancial PositionJanuary 1, 2017Assets$1,600,00070,000300,000CashContributions receivable (net).Investments......Buildings & equipment (net) .700,000Total assets...$2,670,000LlabilitlesAccounts payable and accrued liabilities..Notes payable...Total liabilities.$ 110,0001,100,000$1,210,000Net Assets$1,100,000Unrestricted....Temporarily restricted.Permanently restricted.Total net assets...250,000110,000$1,460,000Total liabilities and net assets.$2,670,000

Answered: SWIM FOR SAFETY Statement of Financlal…

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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Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2017, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. Statements of financial position for both charities at that date appear below.

The buildings and equipment reported by Help & Save have a fair value of $900,000. The buildings and equipment reported by Swim For Safety have a fair value of $730,000.

Assume Help & Save pays $1 million in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained?
Assume Help & Save pays $990,000 in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained?
Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help–Swim–Save. A new governing body will be formed to manage and operate this new organization. What balances will appear on the combined balance sheet immediately after control is gained?

SWIM FOR SAFETY
Statement of Financlal Position
January 1, 2017
Assets
$ 500,000
210,000
170,000
590,000
Cash
Contributions receivable (net).
Investments .
Buildings & equipment (net)
Total assets
$1,470,000
Llabilitles
Accounts payable and accrued liabilities.
Notes payable....
$ 70,000
620,000
Total liabilities
$ 690,000
Net Assets
Unrestricted..
$ 420,000
Temporarily restricted
Permanently restricted..
190,000
170,000
Total net assets...
$ 780,000
$1,470,000
Total liabilities and net assets.

HELP & SAVE
Statement of FInancial Position
January 1, 2017
Assets
$1,600,000
70,000
300,000
Cash
Contributions receivable (net).
Investments......
Buildings & equipment (net) .
700,000
Total assets...
$2,670,000
Llabilitles
Accounts payable and accrued liabilities..
Notes payable...
Total liabilities.
$ 110,000
1,100,000
$1,210,000
Net Assets
$1,100,000
Unrestricted....
Temporarily restricted.
Permanently restricted.
Total net assets...
250,000
110,000
$1,460,000
Total liabilities and net assets.
$2,670,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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