Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for- profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2020, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. The following are statements of financial position for both charities at that date. HELP & SAVE Statement of Financial Position January 1, 2020 Assets $1,800,000 110,000 400,000 800,000 $3,110,000 Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities $210,000 1,200,000 $1,410,000 Net Assets Net assets without donor restrictions $1,300,000 400,000 $1,700,000 $3,110,000 Net assets with donor restrictions Total net assets Total liabilities and net assets SWIM FOR SAFETY Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) $700,000 250,000 270,000 690,000 $1,910,000 Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable $270,000 720,000 $990,000 Total liabilities Net Assets Net assets without donor restrictions $520,000 400,000 $920,000 $1,910,000 Net assets with donor restrictions Total net assets Total liabilities and net assets The buildings and equipment reported by Help & Save have a fair value of $1,020,000. The buildings and equipment reported by Swim For Safety have a fair value of $810,000.
Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for- profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2020, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. The following are statements of financial position for both charities at that date. HELP & SAVE Statement of Financial Position January 1, 2020 Assets $1,800,000 110,000 400,000 800,000 $3,110,000 Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities $210,000 1,200,000 $1,410,000 Net Assets Net assets without donor restrictions $1,300,000 400,000 $1,700,000 $3,110,000 Net assets with donor restrictions Total net assets Total liabilities and net assets SWIM FOR SAFETY Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) $700,000 250,000 270,000 690,000 $1,910,000 Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable $270,000 720,000 $990,000 Total liabilities Net Assets Net assets without donor restrictions $520,000 400,000 $920,000 $1,910,000 Net assets with donor restrictions Total net assets Total liabilities and net assets The buildings and equipment reported by Help & Save have a fair value of $1,020,000. The buildings and equipment reported by Swim For Safety have a fair value of $810,000.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-
profit entity that operates in Missouri. The leaders of these two organizations have decided to combine
forces on January 1, 2020, in order to have a bigger impact from their work. They are currently discussing
ways by which this combination can be created. The following are statements of financial position for both
charities at that date.
HELP & SAVE
Statement of Financial Position
January 1, 2020
Assets
Cash
$1,800,000
110,000
400,000
800,000
$3,110,000
Contributions receivable (net)
Investments
Buildings & equipment (net)
Total assets
Liabilities
Accounts payable and accrued liabilities
Notes payable
Total liabilities
$210,000
1,200,000
$1,410,000
Net Assets
$1,300,000
400,000
$1,700,000
$3,110,000
Net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
SWIM FOR SAFETY
Statement of Financial Position
January 1, 2020
Assets
Cash
$700,000
250,000
270,000
690,000
$1,910,000
Contributions receivable (net)
Investments
Buildings & equipment (net)
Total assets
Liabilities
Accounts payable and accrued liabilities
Notes payable
$270,000
720,000
$990,000
Total liabilities
Net Assets
Net assets without donor restrictions
$520,000
400,000
$920,000
$1,910,000
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
The buildings and equipment reported by Help & Save have a fair value of $1,020,000. The buildings and
equipment reported by Swim For Safety have a fair value of $810,000.
Transcribed Image Text:b. Assume Help & Save pays $1,089,000 in cash from its net assets without donor restrictions to gain
complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported
by contributions and investment income in the future. What balances will appear on the statement of
financial position immediately after control is gained?
HELP & SAVE
Statement of Financial Position
January 1, 2020
Assets
Cash
Contributions receivable (net)
Investments
Buildings & equipment (net)
Total assets
$
Liabilities
Accounts payable and accrued liabilities
Notes payable
Total liabilities
$
Net Assets
Net assets without donor restrictions
Net assets with donor restrictions
Total net assets
$
Total liabilities and net assets
$
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