Concept explainers
(a)
Introduction: The balance sheet of a company discloses the financial position of a company at the end of the year. With the help of a balance sheet one can know the financial capacity of a company at any given point of time.
The comparative balance sheet for F for the year ended June 30, 20X3 and 20X2
(a)
Answer to Problem 19.10P
Comparative Balance Sheet for the year ended June 30, 20X3 and 20X2
Particulars | 20X3 | 20X2 |
Assets: | ||
Cash | 824,900 | 217,000 |
Accounts receivable | 137,000 | 341,000 |
State appropriations receivable | 50,000 | 75,000 |
Investment | 89,000 | 60,000 |
Total assets: | 1,100,900 | 693,000 |
Liabilities: | ||
Accounts payable | 59,000 | 45,000 |
Deferred revenue | 158,000 | 66,000 |
Net assets: | ||
Unrestricted | 716,000 | 515,000 |
Temporarily restricted | 117,900 | 67,000 |
Permanently restricted | 50,000 | 0 |
Total liabilities and net assets | 1,100,900 | 693,000 |
Explanation of Solution
Calculation of accounts receivable for the year ended 20X3
Particulars | Amount |
Opening balance | 1,834,000 |
Less: collections | 1,686,000 |
Closing balance | 148,000 |
Less: estimate uncollectibles | (11,000) |
Accounts receivables | 137,000 |
Calculation for the amount of investment:
(b)
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:
- Without donor restriction funds
- With donor restriction funds
- The aggregate amount
The statement of activities for F for the year ended June 30, 20X3
(b)
Answer to Problem 19.10P
Statement of activities for the year ended June 30, 20X3
Particulars | Unrestricted | Temporarily restricted | Permanently restricted | Total |
Revenues, gains and other support: | ||||
Tuition and fees | 1,900,000 | 1,900,000 | ||
State appropriation | 50,000 | 50,000 | ||
Interest income | 6,000 | 7,000 | 13,000 | |
Contributions | 25,000 | 50,000 | 50,000 | 125,000 |
Gain on sale of investment | 5,000 | 5,000 | ||
Investment income | 1,900 | 1,900 | ||
Net assets released | 13,000 | (13,000) | 0 | |
Total (B): | 1,994,000 | 50,900 | 50,000 | 2,094,900 |
Expenses and other deductions (A) | 1,793,000 | 1,793,000 | ||
Change in net assets (A-B) | 201,000 | 50,900 | 50,000 | 301,900 |
Add: net assets at the beginning of the year | 515,000 | 67,000 | 582,000 | |
Net assets at the end of the year: | 716,000 | 117,900 | 50,000 | 883,900 |
Explanation of Solution
The statement of activities is the financial statement for a no- profit organization. In the above presented statement of activities, Fâs various revenues and expenses are shown under their respective heads. The total amount of net assets at the end of the year June 30, 20X3 is $883,900
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Chapter 19 Solutions
Advanced Financial Accounting
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