Chapter 14 – Accounting for Not-for-Profit Organizations
14-32
Ch. 14, Solutions, Exercise 14-23 (Cont’d)
11. CONTRIBUTIONS—WITHOUT DONOR RESTRICTIONS 38,861
(trans. 1 and 4)
MEMBERSHIP DUES 16,285
GRANT REVENUE 3,120
TUITION & FEES 6,974
Chapter 14 – Accounting for Not-for-Profit Organizations
14-33
Ch. 14, Solutions, Exercise 14-23 (Cont’d)
c. ART LEAGUE
STATEMENT OF ACTIVITIES
INVESTMENT INCOME 686 $ 1,269 1,955
NET ASSETS RELEASED
FROM RESTRICTION
SATISFACTION OF PURPOSE 3,660 (3,660)
TOTAL REVENUE & OTHER
Chapter 14 – Accounting for Not-for-Profit Organizations
14-34
Ch. 14, Solutions, Exercise 14-23 (Cont’d)
d. ART LEAGUE
STATEMENT OF FINANCIAL POSITION
Chapter 14 – Accounting for Not-for-Profit Organizations
14-35
Ch. 14, Solutions, Exercise 14-23 (Cont’d)
14-24. Some of the corrections or modifications that should be made to the
Center to Advance Student Learning’s statement of financial position
include:
• Short and long-term investments should be separated since the
FASB indicates that assets should be reported in terms of nearness
Chapter 14 – Accounting for Not-for-Profit Organizations
14-36
Ch. 14, Solutions, Exercise 14-24 (Cont’d)
There is at least $1,225,000 in net assets restricted for permanent
endowment that should be classified in the asset section as Assets
14-37
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consent of McGraw-Hill Education.
Ch. 14, Solutions (Cont’d)
14-25.
a. KARE COUNSELING CENTER
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2020
ASSETS LIABILITIES AND NET ASSETS
Chapter 14 – Accounting for Not-for-Profit Organizations
Ch. 14, Solutions, Exercise 14-25 (Cont’d)
KARE COUNSELING CENTER
STATEMENT OF EXPENSES BY NATURE AND FUNCTION
Chapter 14 – Accounting for Not-for-Profit Organizations
Ch. 14, Solutions, Exercise 14-25 (Cont’d)
c.
KARE COUNSELING CENTER
STATEMENT OF ACTIVITIES
Chapter 14 – Accounting for Not-for-Profit Organizations
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Ch. 14, Solutions, Exercise 14-25 (Cont’d)
d.
KARE COUNSELING CENTER
STATEMENT OF CASH FLOWS
PROCEEDS FROM CONTRIBUTIONS RESTRICTED FOR:
INVESTMENT IN CAPITAL ASSETS 38,100
NET INCREASE IN CASH (38,814)
CASH, JULY 1, 2019 165,314
CASH, JUNE 30, 2020 $ 126,500
Chapter 14 – Accounting for Not-for-Profit Organizations
14-41
Ch. 14, Solutions, Exercise 14-25 (Cont’d)