(a)
Introduction:
The journal entries for the transactions in March 20X3
(a)
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
- Recording the cash received by donors
- Recording the cash collected from snack bar
- Recording the amount if income received from investment
- Recording the expenses paid by the company
- Recording the cash paid against the vouchers
- Recording the assessment receivable and deferred capital account
- Recording the increase in assets.
(b)
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:
- Without donor restriction funds
- With donor restriction funds
- The aggregate amount
The statement of activities for the year ended March 31, 20X3
(b)
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
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Chapter 19 Solutions
Advanced Financial Accounting
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