A9 !Required information[The following information applies to the questions displayed below.]For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarilyconform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financialstatements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000,and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets withpurpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statementsshow total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assetswith donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictionsand $80,000 in net assets that must be permanently held. Total expenses for Year 2 were $500,000 and reported undernet assets without donor restrictions. Each part that follows should be viewed as an independent situation.Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members get nothing in return for their dues.The entity consistently records the cash collections as an increase in cash and an increase in exchange revenues under net assetswithout donor restrictions. The board of trustees approved a policy several years ago that 10 percent of the money collected frommembership fees be set aside and invested with the money held for emergency purposes. Cash is decreased and "investments heldfor emergencies are increased with each purchase.Required:a. What is the appropriate amount of net assets without donor restrictions at the end of Year 1?b. What is the appropriate amount of net assets without donor restrictions at the end of Year 2?c. What is the appropriate amount of net assets with donor restrictions at the end of Year 2?Answer is complete but not entirely correct.a. Net assets without donor restrictions at the end of Year 1b. Net assets without donor restrictions at the end of Year 2c. Net assets with donor restrictions at the end of Year 2$ 240,000$400,000$ 400,000

Net assets with donor restrictions represent funds within a nonprofit organization designated by…

a. Net assets without donor restrictions at the end of Year 1 b. Net assets without donor restrictions at the end of Year 2 c. Net assets with donor restrictions at the end of Year 2 $ $ $ 240,000 400,000 400,000

a. Net assets without donor restrictions at the end of Year 1 b. Net assets without donor restrictions at the end of Year 2 c. Net assets with donor restrictions at the end of Year 2 $ $ $ 240,000 400,000 400,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information Skip to question [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be…
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Required information Skip to question [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be…
[The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total expenses for Year 2 were…
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