Chapter 19, Problem 19.14P

(a)

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 19.14P

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

Particulars	Unrestricted	Temporarily restricted
Public support and revenue:
Public support:
Contributions (300,000-2,000)	298,000	15,000
Revenues:
Membership fees	25,000
Program service fees	30,000
Investment income	10,000
Net assets realized
Time restriction (endowment fund)	20,000	(20,000)
Use restriction	5,000	(5,000)
Total support and revenue (A)	388,000	10,000
Expenses:
Program services:
Deaf children	120,000
Blind children	150,000
Total program services	270,000
Supporting services:
Management and general	49,000
Fund raising	9,000
Total supporting services	58,000
Total expenses (B)	8,000
Change in net assets (A-B)	60,000	(10,000)
Add: Fund balance, July 1, 20X3	38,000	23,000
Fund balance, June 30, 20X4	98,000	13,000

Explanation of Solution

The statement of activities is the financial statement for a no- profit organization. In the above presented statement of activities, CA’s various revenues and expenses are shown under their respective heads. The amount of unrestricted fund balance is $98,000 and temporarily restricted fund is $13,000 as of June 30, 20X4

(b)

To determine

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

The financial statement of C for the year ended June 30, 20X4

Answer to Problem 19.14P

Financial statement for the year ended June 30, 20X4

Particulars	Amount	Amount
Assets:
Cash		40,000
Investments		100,000
Pledges receivable		9,000
Interest receivable		1,000
Restricted assets		13,000
Total assets		163,000
Liabilities:
Accounts payable		50,000
Deferred revenue		2,000
Net assets:
Unrestricted	98,000
Temporarily restricted	13,000
Total net assets		111,000
Total liabilities and net assets		163,000

Explanation of Solution

The total amount of assets and liabilities as of June 30, 20X4 is $163,000