University plant funds can readily be recast from an AICPA to a FASB presentation. A university maintains several plant funds as shown in the condensed balance sheets presented below. The fund structure and presentation are consistent with the AICPA college and university reporting model. Although this model has been superseded by FASB ASU 2014-09, Financial Statements of Not-for-Profit Organizations, it is still used by many colleges and universities for internal purposes. Plant Funds (in thousands) Unexpended plant funds Assets Cash $ 9,000 Investments 27,000 Total assets $ 36,000 Liabilities and fund balances Bonds payable $ 24,000 Fund balance Restricted by donors for specified projects $ 4,000 Not restricted by donors 8,000 12,000 Total liabilities and fund balances $ 36,000 Funds for renewals and replacements Assets Cash $ 4,500 Investments 85,100 Total assets $ 89,600 Liabilities and fund balances Fund balance $ 89,600 Funds for retirement of indebtedness Assets Cash $ 21,600 Investments 25,600 Total assets $ 47,200 Liabilities and fund balances Fund balance $ 47,200 Investment in plant Assets Construction in process $ 3,500 Equipment 39,300 Land 12,000 Buildings 127,800 Total plant 182,600 Less accumulated depreciation (78,200) Total investment in plant $104,400 Liabilities and fund balances Notes payable $ 20,000 Bonds payable 39,000 Capital lease obligations 8,500 Net investment in plant 36,900 Total investment in plant $104,400 Recast the plant funds as they would appear in external reports in accord with ASU 2014-09. That is, show how each of the reported amounts would be shown in a balance sheet with one column each for without donor restrictions and another for with donor restrictions . Allocate the cash ($9,000) and investments ($27,000) of the unexpended plant funds to the donor-restricted category based on donor-restricted fund balance as a proportion of total liabilities and fund balances (e.g., $4,000/$36,000 to net assets with donor restrictions). Comment briefly on the advantages and disadvantages of each presentation.

University plant funds can readily be recast from an AICPA to a FASB presentation. A university maintains several plant funds as shown in the condensed balance sheets presented below. The fund structure and presentation are consistent with the AICPA college and university reporting model. Although this model has been superseded by FASB ASU 2014-09, Financial Statements of Not-for-Profit Organizations, it is still used by many colleges and universities for internal purposes. Plant Funds (in thousands) Unexpended plant funds Assets Cash $ 9,000 Investments 27,000 Total assets $ 36,000 Liabilities and fund balances Bonds payable $ 24,000 Fund balance Restricted by donors for specified projects $ 4,000 Not restricted by donors 8,000 12,000 Total liabilities and fund balances $ 36,000 Funds for renewals and replacements Assets Cash $ 4,500 Investments 85,100 Total assets $ 89,600 Liabilities and fund balances Fund balance $ 89,600 Funds for retirement of indebtedness Assets Cash $ 21,600 Investments 25,600 Total assets $ 47,200 Liabilities and fund balances Fund balance $ 47,200 Investment in plant Assets Construction in process $ 3,500 Equipment 39,300 Land 12,000 Buildings 127,800 Total plant 182,600 Less accumulated depreciation (78,200) Total investment in plant $104,400 Liabilities and fund balances Notes payable $ 20,000 Bonds payable 39,000 Capital lease obligations 8,500 Net investment in plant 36,900 Total investment in plant $104,400 Recast the plant funds as they would appear in external reports in accord with ASU 2014-09. That is, show how each of the reported amounts would be shown in a balance sheet with one column each for without donor restrictions and another for with donor restrictions . Allocate the cash ($9,000) and investments ($27,000) of the unexpended plant funds to the donor-restricted category based on donor-restricted fund balance as a proportion of total liabilities and fund balances (e.g., $4,000/$36,000 to net assets with donor restrictions). Comment briefly on the advantages and disadvantages of each presentation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

University plant funds can readily be recast from an AICPA to a FASB presentation.

A university maintains several plant funds as shown in the condensed balance sheets presented below. The fund structure and presentation are consistent with the AICPA college and university reporting model. Although this model has been superseded by FASB ASU 2014-09, Financial Statements of Not-for-Profit Organizations, it is still used by many colleges and universities for internal purposes.

Plant Funds (in thousands)

Unexpended plant funds
Assets
Cash	$ 9,000
Investments	27,000
Total assets	$ 36,000
Liabilities and fund balances
Bonds payable	$ 24,000
Fund balance
Restricted by donors for specified projects	$ 4,000
Not restricted by donors	8,000	12,000
Total liabilities and fund balances		$ 36,000
Funds for renewals and replacements
Assets
Cash		$ 4,500
Investments		85,100
Total assets		$ 89,600
Liabilities and fund balances
Fund balance		$ 89,600
Funds for retirement of indebtedness
Assets
Cash		$ 21,600
Investments		25,600
Total assets		$ 47,200
Liabilities and fund balances
Fund balance		$ 47,200
Investment in plant
Assets
Construction in process		$ 3,500
Equipment		39,300
Land		12,000
Buildings		127,800
Total plant		182,600
Less accumulated depreciation		(78,200)
Total investment in plant		$104,400
Liabilities and fund balances
Notes payable		$ 20,000
Bonds payable		39,000
Capital lease obligations		8,500
Net investment in plant		36,900
Total investment in plant		$104,400

Recast the plant funds as they would appear in external reports in accord with ASU 2014-09. That is, show how each of the reported amounts would be shown in a balance sheet with one column each for without donor restrictions and another for with donor restrictions . Allocate the cash ($9,000) and investments ($27,000) of the unexpended plant funds to the donor-restricted category based on donor-restricted fund balance as a proportion of total liabilities and fund balances (e.g., $4,000/$36,000 to net assets with donor restrictions).
Comment briefly on the advantages and disadvantages of each presentation.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.