Chapter 19, Problem 19.12P

(a)

To determine

Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.

The journal entries for the transactions in March 20X3

Answer to Problem 19.12P

Journal Entries

S.no	Date	Particulars	Debit (in $)	Credit (in$)
1		Cash	20,000
		Revenue- Annual dues		20,000
2		Cash	28,000
		Revenue- Snack bar		28,000
3		Cash	6,000
		Investment income		6,000
4		Expense- House	17,000
		Expense- Snack bar	26,000
		Expense- General	11,000
		Accounts payable		54,000
5		Accounts payable	55,000
		Cash		55,000
6		Assessment receivable	10,000
		Deferred capital support		10,000
7		Cash	5,000
		Support unrestricted		5,000

Explanation of Solution

1. Recording the cash received by donors
2. Recording the cash collected from snack bar
3. Recording the amount if income received from investment
4. Recording the expenses paid by the company
5. Recording the cash paid against the vouchers
6. Recording the assessment receivable and deferred capital account
7. Recording the increase in assets.

(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 the year ended March 31, 20X3

Answer to Problem 19.12P

Statement of Activities for the year ended December 31, 20X2

Particulars	Amount (in $)	Amount (in $)
Revenues, gains and other support:
Sales: snack bar and soda fountain		28,000
Annual dues		20,000
Investment income		6,000
B unrestricted		5,000
Total revenues, gains and other support:		59,000
Less: Expenses
Snack bar and soda fountain	32,000
House	26,000
General and administrative	12,000
Total expenses		70,000
Change in net assets		(11,000)
Less: unrealized gain on investment		7,000
Change in net assets		(4,000)
Add: net assets on April 1, 20X2		12,000
Net assets on March 31, 20X3		8,000

Explanation of Solution

The statement of activities is the financial statement for a no- profit organization. In the above presented statement of activities, E’s various revenues and expenses are shown under their respective heads. The amount of net assets as on March 31, 20X3 is $8,000