Chapter 19, Problem 19.10P

(a)

To determine

Introduction: The balance sheet of a company discloses the financial position of a company at the end of the year. With the help of a balance sheet one can know the financial capacity of a company at any given point of time.

The comparative balance sheet for F for the year ended June 30, 20X3 and 20X2

Answer to Problem 19.10P

Comparative Balance Sheet for the year ended June 30, 20X3 and 20X2

Particulars	20X3	20X2
Assets:
Cash	824,900	217,000
Accounts receivable	137,000	341,000
State appropriations receivable	50,000	75,000
Investment	89,000	60,000
Total assets:	1,100,900	693,000
Liabilities:
Accounts payable	59,000	45,000
Deferred revenue	158,000	66,000
Net assets:
Unrestricted	716,000	515,000
Temporarily restricted	117,900	67,000
Permanently restricted	50,000	0
Total liabilities and net assets	1,100,900	693,000

Explanation of Solution

Calculation of accounts receivable for the year ended 20X3

Particulars	Amount
Opening balance	1,834,000
Less: collections	1,686,000
Closing balance	148,000
Less: estimate uncollectibles	(11,000)
Accounts receivables	137,000

Calculation for the amount of investment:

  $\begin{array}{l}investment=beginningbalance+certificateofdeposit+saleofrestrictedinvestment\\ =(60,000+50,000)-21,000\\ =110,000-21,000\\ =\$89,000\end{array}$

(b)

To determine

Introduction: The statement of activities is the financial statement of a non- profit organization or otherwise. The statement of activities has multiple columns for reporting the amounts for the following net assets:

1. Without donor restriction funds
2. With donor restriction funds
3. The aggregate amount

The statement of activities for F for the year ended June 30, 20X3

Answer to Problem 19.10P

Statement of activities for the year ended June 30, 20X3

Particulars	Unrestricted	Temporarily restricted	Permanently restricted	Total
Revenues, gains and other support:
Tuition and fees	1,900,000			1,900,000
State appropriation	50,000			50,000
Interest income	6,000	7,000		13,000
Contributions	25,000	50,000	50,000	125,000
Gain on sale of investment		5,000		5,000
Investment income		1,900		1,900
Net assets released	13,000	(13,000)		0
Total (B):	1,994,000	50,900	50,000	2,094,900
Expenses and other deductions (A)	1,793,000			1,793,000
Change in net assets (A-B)	201,000	50,900	50,000	301,900
Add: net assets at the beginning of the year	515,000	67,000		582,000
Net assets at the end of the year:	716,000	117,900	50,000	883,900

Explanation of Solution

The statement of activities is the financial statement for a no- profit organization. In the above presented statement of activities, F’s various revenues and expenses are shown under their respective heads. The total amount of net assets at the end of the year June 30, 20X3 is $883,900