The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $118,000; contributions receivable (net) of $218,000; investments of $318,000; and land, buildings, and equipment of $218,000. In addition, its unrestricted net assets were $436,000, temporarily restricted net assets were $118,000, and permanently restricted net assets were $318,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted. During the current year, the entity has the following transactions: • Computed interest of $38,000 on the contributions receivable. • Received cash of $118,000 on the contributions and wrote off another $5,800 as uncollectible. • Received unrestricted cash gifts of $198,000. Paid salaries of $108,000 with $33,000 of that amount coming from restricted funds. • Received a cash gift of $30,000 that the entity must convey to another charity. However, Watson has the right to give the money to a different organization if it so chooses. • Bought a building for $518,000 by signing a long-term note for $459,000 and using restricted funds for the remainder. Collected membership dues of $48,000. Individuals receive substantial benefits from the memberships. • Received income of $48,000 generated by the permanently restricted neț assets. Paid rent of $30,000, advertising of $33,000, and utilities of $34,000. • Received an unrestricted pledge of $218,000; it will be collected in five years. The organization expects to collect the entire amount. Present value is $167,000. It then recognized interest of $7,800 for the year. Computed depreciation as $58,000. Paid $33,000 in interest on the note signed to acquire the building. a. Prepare a statement of activities for this entity for this year. b. Prepare a statement of financial position for this entity at the end of this year. < Prev 6 of 6 Next> Photos (1).zip ZUP MacBook Pro

The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $118,000; contributions receivable (net) of $218,000; investments of $318,000; and land, buildings, and equipment of $218,000. In addition, its unrestricted net assets were $436,000, temporarily restricted net assets were $118,000, and permanently restricted net assets were $318,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted. During the current year, the entity has the following transactions: • Computed interest of $38,000 on the contributions receivable. • Received cash of $118,000 on the contributions and wrote off another $5,800 as uncollectible. • Received unrestricted cash gifts of $198,000. Paid salaries of $108,000 with $33,000 of that amount coming from restricted funds. • Received a cash gift of $30,000 that the entity must convey to another charity. However, Watson has the right to give the money to a different organization if it so chooses. • Bought a building for $518,000 by signing a long-term note for $459,000 and using restricted funds for the remainder. Collected membership dues of $48,000. Individuals receive substantial benefits from the memberships. • Received income of $48,000 generated by the permanently restricted neț assets. Paid rent of $30,000, advertising of $33,000, and utilities of $34,000. • Received an unrestricted pledge of $218,000; it will be collected in five years. The organization expects to collect the entire amount. Present value is $167,000. It then recognized interest of $7,800 for the year. Computed depreciation as $58,000. Paid $33,000 in interest on the note signed to acquire the building. a. Prepare a statement of activities for this entity for this year. b. Prepare a statement of financial position for this entity at the end of this year. < Prev 6 of 6 Next> Photos (1).zip ZUP MacBook Pro

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 39P

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