Question;Preparation;of journal entries and financial statement for not-for-profit;Tomorrows World is a not -for- profit;organization. At the end of last year, the organization reported the following;trail balance.;Debit;credit;Cash;Investments;Contribution receivable;PPE,net;Payables;Long term liabilities;Net asset-unrestricted;Net asset-temporarily restricted;Net assets-permanently restricted;$360,000;4,800,000;1,040,000;2,400,000;-;-;-;-;$800,000;1,600,000;3,200,000;2,200,000;800,000;$8,600,000;$8,600,000;The investments are allocated as follows;45% are unrestricted, 40% are temporarily restricted (use of thses funds is;stipulated by the donors) and 15% are permanently restricted (only the interest;income may be used to fund operating expenses if so directed by the;organization?s Board of Trustees, and no such designation was made for this;year). Investment income (paid in cash) is 5% for the current year.;During the year, the organization received;$5,600,000 in unrestricted donation and $ 560,000 in donations whose use is;temporarily restricted as to use by donors. All of these donation are account.In;addition, it recognized program expenses of $ 400,000 is spent using;temporarily restricted funds for approved purposes, thus receiving the;appropriate release from the donors restrictions.;Tomorrows World collected $6,000,000of;contributions receivable, paid $ 5,800,000 of payable and purchased additional;land in the amount of $ 260,000 (depreciation expense of $180,000 is recognized;related to the depreciable assets). Interest expense on the long term debt is;included in the expenses referenced above, and no repayment of the principal is;recognized during the year.;Required;a.;Prepare journal entries for the;organization financial activities during the year.;b.;Prepare the year end statement;of activities and statement of financial position.;Preparation;of journal entries and financial statements for not for profit;Brave Hearts is a not-for-profit;organization that reported the following post -closing trial balance at the end;of last year.;Beginning balances;DR;CR;Cash;Instatement;Contribution receivable;PPE, net;Payables;Long term liabilities;Net asset-unrestricted;Net asset-temporarily restricted;Net assets-permanently restricted;$ 144,000;1,920,000;416,000;960,000;-;-;-;-;-;-;-;-;-;$320,000;640,000;1,280,000;880,000;320,000;$3,440,000;$3,440,000;The organization reported a cash return of;4% during the subsequent year, and the investments are allocated as follows;Investment-Unrestricted;Investment-Temporarily restricted;Investment- permanently;45%;40%;15%;In addition to the recognition of;investment returns, the organization reported the following revenues and;expenses, all on account;Revenues-constructions (unrestricted);Revenues- contributions(temporarily restricted);Revenues-constructions (permanently restricted);Expenses-program;Expenses-support;$2,240,000;224,000;36,000;2,080,000;296,000;Of the total expenses, $160,000 relate to uses that are;paid from temporarily restricted funds in accordance with the stipulations of;the donors and are therefore, released from restriction.;During the year, the organization;collected $ 2,400,000 of receivables and paid $2,320,000 of accounts;payable. In addition it purchased long term assets for cash in the amount of;$104,000 and recognized depreciation expense of $ 72,000. The orgnization also;purchased additional investments with excess cash in the amount $96,000 and;repaid $ 92,000 principal amount of long term debt.;Required;a.;Prepare journal entries for the;organization?s financial activities during the year;b.;Prepare the year end statement;of activities and statement of financial position.
Paper#49774 | Written in 18-Jul-2015Price : $27