Modern Advanced Accounting

8/9/2019 Modern Advanced Accounting

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CHAPTER 16NONPROFIT ORGANIZATIONS

The title of each problem is followed by the estimated time in minutes required for completion and by adifficulty rating. The time estimates are applicable for students using the partially filled-in working papers.

Pr. 161 Seaside Hospital(30 minutes, easy)

Preparation of statement of activities for a nonprofit hospital that has only a general fund.

Pr. 162 Holley School(30 minutes, medium)

Journal entries for transactions and events of a nonprofit private secondary school, inunrestricted fund, quasi-endowment fund, and plant fund.

Pr. 163 Nonprofit Trade Association(30 minutes, medium)

Preparation of a statement of activities and a statement of financial position for a nonprofittrade association that does not use fund accounting.

Pr. 164 Suburban Welfare Services(50 minutes, medium)

Working paper to compute original and revised equity percentages for funds of a nonprofitvoluntary health and welfare organiation in an investment pool. Journal entries forunrestricted fund for operations of the investment pool.

Pr. 165 Harbor Hospital(50 minutes, medium)

Journal entries for transactions and events of general fund, restricted fund, and annuity fund ofa nonprofit hospital.

Pr. 166 Wigstaff Foundation(50 minutes, medium)

Preparation of a statement of cash flows for a nonprofit research and scientific organiation, inthe indirect method format.

Pr. 167 Mid-City Sports Club(50 minutes, medium)

Preparation of !ournal entries "e#planations omitted$ for events and transactions of a nonprofitsocial club. %lso, preparation of a statement of activities and a statement of financial position.

Pr. 168 State University(60 minutes, strong)

Journal entries for transactions and events of a nonprofit university&s unrestricted fund,restricted fund, and endowment fund.

Pr. 169 esthaven Hospital(60 minutes, strong)

Journal entries for transactions and events of a nonprofit hospital&s general fund, plantreplacement and e#pansion fund, and endowment fund.

Pr. 1610 !ibra College(60 minutes, strong)

Journal entries for unrestricted fund and restricted fund of a nonprofit college' preparation ofstatement of changes in fund balances.

Pr. 1611 "isadvantaged Children Association(60 minutes, strong)

Preparation of financial statements, e#cluding a statement of cash flows, for a nonprofitvoluntary health and welfare organiation.

The McGraw-Hill Companies, Inc., 2006

()* Modern Advanced Accountin, !0"e


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ANSWERS TO REVIEW QUESTIONS

(. % nonproit organi!ationis an entity that is usually operated for the benefit of society as a whole,rather than for the benefit of an individual proprietor or a group of partners or stockholders. Theconcept of +net income+ is not meaningful for a nonprofit organiation.

. %mong the types of nonprofit organiations in the nited tates are the following "only fourrequired$/0emetery organiations Private and community foundations

0ivic organiations Private elementary and secondary schools0olleges and universities Professional associations0ultural institutions Public broadcasting stations1raternal organiations 2eligious organiations3ospitals 2esearch and scientific organiations4abor unions ocial and country clubs4ibraries Trade associations5useums 6oluntary health and welfare organiationsPerforming arts organiations 7oological and botanical societiesPolitical parties

8. 9ach of the %:0P%Accounting and Auditing #uidesor$ndustry Audit #uidesdealing withnonprofit organiations contains a section that indicates that the accounting concepts includedtherein have the substantial authoritative support required for generally accepted accountingprinciples.

*. 0haracteristics of nonprofit organiations resembling those of governmental entities include thefollowing "only three are required$/

"($ #ervice to societ$. ;onprofit organiations render services to society as a whole.

"$ %o pro&it motivation. ;onprofit organiations do not operate with the ob!ective of earning anet income.

"8$ 'inancin ($ the citi)enr$. 5ost nonprofit organiations depend on the general population fora substantial portion of their support because revenues from services generally do not cover alltheir operating costs.

"*$ #tewardship &or resources. .


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?. a. % nonprofit organiation records contributed material in its accounting records at the currentfair value of the material when contributed. 1ailure to record contributed material wouldunderstate assets and revenues at the time of the contribution and would understate e#penseswhen the material was used in operations.

(. % nonprofit organiation records contributed services in its accounting records only if theservices were rendered to the organiation under specified conditions. The contributed servicesare recorded as salaries e#pense and as revenues at an appropriate rate, less any meals orliving costs incurred by the organiation for the donor of the services.

). 9#penses of a nonprofit organiation that receives significant support from the public are classifiedon a un"tiona#basis that differentiates between program services e#penses and supportingservices e#penses.

@. npaid amounts of grants that may be revoked by the board of trustees of a nonprofit performingarts organiation are not recognied as e#penses until they are paid.

(A. 0ollections often are not assigned a value in the financial statements of a nonprofit museum.:nstead, the +0ollections+ caption in the statement of financial position is referenced to a note in thefinancial statements that describes the collections.

((. % nonprofit organiation&s annuity undrecords assets contributed with the requirement that theorganiation pay specified fi#ed amounts periodically to named recipients, for a stipulated timeperiod. % nonprofit organiation&s #ie in"ome undrecords assets contributed with the stipulationthat income from the assets be paid periodically to named recipients during their lifetimes.

(. a. $esignated %und &a#an"eis a ledger account in a nonprofit organiation&s unrestricted fundthat is used to record the board of directors& earmarking of unrestricted fund resources for aspecific purpose.

(. % t'irdparty payoris an organiation that is liable for payment of many hospital receivables,instead of the patients receiving the hospital&s services. 9#amples of third-party payors are the.. government "5edicare and 5edicaid programs$,


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%ccounts 2eceivable =A,AAAPatient ervice 2evenues =A,AAA

0ontractual %d!ustments (*A,AAA%ccounts 2eceivable (*A,AAA

Eoubtful %ccounts 9#pense A,AAA%llowance for Eoubtful %ccounts A,AAA

+. 163 1inancial statement presentation of 2edwood 3ospital for month of ept., AA>/

-n statement o a"tiitiesPatient service revenues "net of contractual ad!ustments, B(),=AA$ B8,AAA

-n statement o inan"ia# position%ccounts receivable "net of allowance for doubtful accounts, B(*,>AA$ BA),*AA

+. 164 Journal entries for 2ecuperative 3ospital, Fct. 8(, AA>/

%ccounts 2eceivable AA,AAAPatient ervice 2evenues AA,AAA

%ccounts 2eceivable >,AAAPatient ervice 2evenues >,AAA

0ontractual %d!ustments 8,AAA

%ccounts 2eceivable 8,AAA

Eoubtful %ccounts 9#pense *,AAA%llowance for Eoubtful %ccounts *,AAA

+. 165 Journal entry for niversity of outh Park nrestricted 1und, June (=, AA>/

4ibrary ,AAA0ontributions 2evenue (>,AAA

To record contribution of library books by various publishers.

+. 166 Journal entry for 0ordova 3ospital General 1und, 5ar. 8(, AA>/

:nventories >,AA0ontributions 2evenue >,AA

To record difference between current fair value "B>,*AA$ andnominal cost "BAA$ of medicine and drugs as support fromcontributed material.

+. 167 Journal entry for Warner 0ollege nrestricted 1und, Fct. 8(, AA>/

alaries 9#pense "B8,*AA C B()A$ 8,A0ontributions 2evenue 8,A

To record contributed services at current fair value, less value ofmeals provided to donors. "Ta# withholdings are disregarded.$


()? Modern Advanced Accountin, !0"e


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+. 168 Journal entries for 5odern 5useum, June 8A, AA>/

alaries 9#pense >),AAA0ontributions 2evenue >),AAA

To record contributed services of docents for the year.

2ent 9#pense @>,AAA0ontributions 2evenue @>,AAA

To record current fair value of rental of storage facilities whoseuse was contributed.

+. 169 Journal entries for 0ommunity Welfare, :nc. nrestricted 1und, ;ov. 8A, AA>/

Pledges 2eceivable =AA,AAA0ontributions 2evenue =AA,AAA

Provision for Eoubtful Pledges "B=AA,AAA # A.A$ (AA,AAA%llowance for Eoubtful Pledges (AA,AAA

%llowance for Eoubtful Pledges 8A,AAAPledges 2eceivable 8A,AAA

0ash *A,AAAPledges 2eceivable *A,AAA

+. 1610 %d!usting entry for Wabash 3ospital General 1und, June 8A, AA>/

Pledges 2eceivable >A,AAAProvision for Eoubtful Pledges ?,AA

%llowance for Eoubtful Pledges "B>A,AAA # A.($ ?,AA0ontributions 2evenue "B8AA,AAA C B?=,AAA$ =,AAA1und /

:nvestments in ecurities "B(A,AAA # A.8=$ 8,=AAGains on ecurities :nvestments 8,=AA

To record 8=H "B(>,AAA B8>A,AAA D 8=H$ of realied and

unrealied gains of investment pool for the year.

0ash "B(),AAA # A.8=$ >,8AA:nterest and Eividends 2evenue >,8AA

To record 8=H share of earnings of investment pool for the year.

Journal entry for Wilmington 0ollege %nnuity 1und, June 8A, AA>/

:nvestments in ecurities "B(A,AAA # A.*A$ *,AAA0ash "B(),AAA # A.*A$ ?,AA

%nnuity Payable ((,AA


#olutions Manual, Chapter !6 ())


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To record *AH share "B(**,AAA B8>A,AAA D *AH$ of realied

and unrealied gains and earnings of investment pool for the year.

+. 1612 Journal entries for %rtistry nlimited/

AA>July ( 0ash =A,AAA

0ontribution 2evenue =A,AAATo record gift restricted to scholarships for students ofballet.

ept. ( Grants 9#pense *=,AAA0ash *=,AAA

To record grants awarded to nine students of ballet.

+. 1613 Journal entry for Technology pecialists, July l, AA>/

Grants 9#pense (A,AAA0ash (A,AAA

To record payment of first installment of revocable three-yeargrant to 5artin Grey.

+. 1614 /P% P-tatement o %inan"ia# Position

une 30, 2006(amounts in t'ousands)

ssets

0ash and cash equivalents B (AA%ccounts receivable "net$ @AA:nventory of supplies AAhort-term prepayments =A0ash and investments restricted to acquisition of plant assets >AAPlant assets "net$ 8,(AA

Total assets B*,@=A

iai#ities /et ssets

4iabilities/

;otes payable B 8AA%ccounts payable and accrued liabilities ==A%dvances from third-party payors AAEeferred revenues (AA3ousing and mortgage bonds payable @AA

Total liabilities B,A=A

;et %ssets "unrestricted$/1und balance designated for plant assets B >AAndesignated fund balance ,8AA

Total net assets B,@AATotal liabilities and net assets B*,@=A

CASES

ase 161 The action by the board of directors of 2oakdale %ssociation is unsupportable' it might beinterpreted as a deliberate attempt to mislead users of the organiation&s financial statements.%ll unrestricted revenues, regardless of source, must be recorded in the nrestricted 1und of2oakdale %ssociation.


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purpose, the directors may designatea portion of the ndesignated 1und


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report e#penses by their natural classification, in accordance with paragraph > of FAS%State&ent No' ((+,+1inancial tatements of ;ot-for-Profit Frganiations.+ "ee alsoparagraph l=@, ;ote 1, thereof.$


(@( Modern Advanced Accountin, !0"e


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8A 5inutes, 9asySeaside Hospita P!" 16#1

Seaside Hospita

State$e%t o& A'ti(ities

Fo! )ea! E%ded *+%e ,-. /--6

0a$o+%ts i% to+sa%ds2

Revenues:

Patient service revenue (net) $ 1 4 2 0

Other operating revenue 1 8 0

Contributions 3 8 0

Investent revenue 2 8 0

!ota" revenues $ 2 2 # 0

%penses:

&ursing services $ ' # 0

Other proessiona" services 2 # 0

enera" services 3 # 0

*isca" services 1 8 0

+,inistrative services 2 8 0

-epreciation 3 4 0

-oubtu" accounts 8 0

!ota" e%penses 2 0 # 0Increase in unrestricte, net assets $ 2 0 0


#olutions Manual, Chapter !6 (@


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11/25

8A 5inutes, 5ediumNo%p!o&it T!ade Asso'iatio% P!" 16#,

No%p!o&it T!ade Asso'iatio%


Fo! )ea! E%ded *+%e ,-. /--6

Revenues an, gains

6ebership ,ues $ 1 8 4 0 0 0

Conerences an, eetings 3 2 1 0 0 0

Pub"ication an, a,vertising sa"es 1 4 3 0 0 0

.pecia" assessents ' 0 0 0 0

Investent revenue an, net gains 1 1 0 0 0

!ota" revenues an, gains $ 7 0 ; 0 0 0

%penses:

6eber services $ ' # 0 0 0

Conerences an, eetings 1 # # 0 0 0

!echnica" services 2 1 8 0 0 0

Counications # 1 0 0 0

enera" a,inistration 1 ' 4 0 0 0

6ebership ,eve"opent 2 7 0 0 0

!ota" e%penses # 8 2 0 0 0

Increase in unrestricte, net assets $ 2 7 0 0 0

&et assets beginning o /ear 2 8 ' 0 0 0&et assets en, o /ear $ 3 1 2 0 0 0

No%p!o&it T!ade Asso'iatio%

State$e%t o& Fi%a%'ia Positio%

*+%e ,-. /--6

Assets

Current assets:

Cash $ 7 0 0 0

.hortter investents in securities 2 1 7 0 0 0

+ccounts receivab"e "ess a""oance or ,oubtu" accounts

$3000 2 ' 0 0 0Pub"ications inventor/ # 1 0 0 0

!ota" current assets $ 3 1 0 0 0 0


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=A 5inutes, 5ediumS++!a% We&a!e Se!(i'es P!" 16#8

a. 012 S++!a% We&a!e Se!(i'es

Co$p+tatio% o& O!i9i%a E:+it3 Pe!'e%ta9es &o! I%(est$e%t Poo

*+3 1. /--;

C+!!e%t O!i9i%a

Cost &ai! (a+e e:+it3. ($1'000 % 033) ? $84;'0

(4) $300000 % 033 ? $;;000(') $100000 > ($1'000 % 03;) ? $10'8'0

(#) $300000 % 03; ? $117000


(@= Modern Advanced Accountin, !0"e


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S++!a% We&a!e Se!(i'es 0'o%'+ded2 P!" 16#8

b. S++!a% We&a!e Se!(i'es U%!est!i'ted F+%d

*o+!%a E%t!ies

20 0'

-ec 31 Investents in .ecurities 1 ' 0 0 0

Cash 2 ' 0 0 0

ains on .ecurities Investents ($1'000 % 022) 3 3 0 0

Interest an, -ivi,en,s Revenue ($2'000 % 022) ' ' 0 0

Pa/ab"e to Restricte, *un, @($1'000 > $2'000)

% 00#A 2 4 0 0

Pa/ab"e to P"ant *un, @($1'000 > $2'000) % 033A 1 3 2 0 0

Pa/ab"e to +rno", $#0000) %027'0A 2 7 ' 0 0

Pa/ab"e to +rno",

$#0000) % 032'0A 3 2 ' 0 0

Pa/ab"e to ,ar,s n,oent *un, @($40000 >

$#0000) % 021#7A 2 1 # 7 0

!o recor, rea"iBe, an, unrea"iBe, gains an, earnings

o investent poo" or si% onths en,e, une 30

200# an, "iabi"ities to other un,s

30 Pa/ab"e to P"ant *un, 2 7 ' 0 0

Pa/ab"e to +rno",


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=A 5inutes, 5ediumHa!o! Hospita P!" 16#;

a. Ha!o! Hospita Ge%e!a F+%d

*o+!%a E%t!ies

O'toe!. /--6

(1) +ccounts Receivab"e 8 0 0 0 0

Patient .ervice Revenues 8 0 0 0 0

!o recor, gross patient service revenue or onth o

October at u"" rates

+ccounts Receivab"e 2 ' 0 0

Patient .ervice Revenues 2 ' 0 0

!o recor, aount receivab"e ro 5ovar, Fe"are

OrganiBation or charit/ care

Contractua" +,Gustents # 0 0 0

+ccounts Receivab"e # 0 0 0

!o recor, contractua" a,Gustents a""oe, to 6e,icai,

or October

-oubtu" +ccounts %pense 8 0 0 0

+""oance or -oubtu" +ccounts 8 0 0 0!o provi,e or ,oubtu" accounts or October

(2) .a"aries %pense ; 8 0 0

Contributions Revenue ; 8 0 0

!o recor, ,onate, services b/ vo"unteer nurses or

October at going sa"ar/ rates ($10000) "ess cost o

ea"s serve, to vo"unteer nurses at no charge ($200)

(3) P"e,ges Receivab"e ' 0 0 0

Contributions Revenue ' 0 0 0

!o recor, p"e,ges receive, ro ,onors ,uring

October

Cash 3 ' 0 0

P"e,ges Receivab"e 3 ' 0 0

!o recor, p"e,ges co""ecte, in cash ,uring October

Provision or -oubtu" P"e,ges 8 0 0

+""oance or -oubtu" P"e,ges 8 0 0

!o provi,e or ,oubtu" p"e,ges or October

(4) Receivab"e ro +r"ine Fa"ters +nnuit/ *un, ' 0 0

Cash ' 0 0

!o recor, pa/ent o +r"ine Fa"ters annuit/ or

October

0Co%ti%+ed o% pa9e 8;8"2


(@? Modern Advanced Accountin, !0"e


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Ha!o! Hospita 0'o%'+ded2 P!" 16#;

Ha!o! Hospita Ge%e!a F+%d

*o+!%a E%t!ies 0'o%'+ded2

O'toe!. /--6

(') Cash 3 0 0 0

*un, 5a"ance 3 0 0 0

!o recor, receipt o cash ro Char"es Fatson

Restricte, *un, or ne surgica" euipent

P"ant +ssets 3 0 0 0

Cash 3 0 0 0

!o recor, acuisition o ne surgica" euipent

b. Ha!o! Hospita A!i%e E" Wate!s A%%+it3 F+%d

*o+!%a E%t!3

O'toe!. /--6

+nnuit/ Pa/ab"e ' 0 0

Pa/ab"e to enera" *un, ' 0 0

!o recor, "iabi"it/ to enera" *un, or pa/ent o

+r"ine Fa"ters annuit/ or October

Ha!o! Hospita Ca!es Watso% Rest!i'ted F+%d

*o+!%a E%t!3

O'toe!. /--6

*un, 5a"ance 3 0 0 0

Cash 3 0 0 0

!o recor, pa/ent to enera" *un, or acuisition o

ne surgica" euipent


#olutions Manual, Chapter !6 (@)


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=A 5inutes, 5ediumWi9sta&& Fo+%datio% P!" 16#6

Wi9sta&& Fo+%datio%

State$e%t o& Cas Fo5s 0i%di!e't $etod2

Fo! )ea! E%ded *+%e ,-. /--6

&et cash provi,e, b/ operating activities 0E=iit 12 $ 2 # # 0 0 0

Cas &o5s &!o$ i%(esti%9 a'ti(ities>

+cuisition o urniture an, euipent $ 2 2 0 0 0

+cuisition o "ongter investents in securities # 0 0 0 0

&et cash use, in investing activities ( 8 2 0 0 0 )

Cas &o5s &!o$ &i%a%'i%9 a'ti(ities>

Pa/ent o "ongter ,ebt $ 1 # 4 0 0 0 H

&et cash use, in inancing activities ( 1 # 4 0 0 0 )

&et increase in cash $ 2 0 0 0 0

Cash beginning o /ear # 3 0 0 0 0

Cash en, o /ear $ # ' 0 0 0 0

H($1#4000 > $7;4000) ($17#000 > $#18000) ? $1#4000

E=iit 1Cash "os ro operating activities:

Increase in unrestricte, net assets $ 1 8 8 0 0 0

+,Gustents to reconci"e increase in unrestricte, net assets to net cash

provi,e b/ operating activities:

-epreciation e%pense 1 4 8 0 0 0

Increase in accounts receivab"e (net) ( 3 2 0 0 0 )

Increase in unbi""e, contract revenue an, reibursab"e grant costs ( 1 ; # 0 0 0 )

Increase in shortter prepa/ents ( 4 0 0 0 )

Increase in accounts pa/ab"e an, accrue, "iabi"ities # 0 0 0 0

Increase in restricte, grant a,vances 1 0 2 0 0 0

&et cash provi,e, b/ operating activities $ 2 # # 0 0 0


(@@ Modern Advanced Accountin, !0"e


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18/25

?id4Cit3 Spo!t C+ 0'o%'+ded2 P!" 16#@

b. ?id4Cit3 Spo!ts C+


Fo! )ea! E%ded *+%e ,-. /--6

Revenues an, gains:

-ues $ 2 0 0 0 0

.nacJ bar an, so,a ountain 2 8 0 0 0

Interest # 0 0 0

its an, contributions ($10000 > $'000) 1 ' 0 0 0

!ota" revenues an, gains $ # ; 0 0 0

%penses:

C"ubhouse ($17000 > $;000) $ 2 # 0 0 0

.nacJ bar an, so,a ountain ($2000 > $30000) 3 2 0 0 0

enera" an, a,inistrative ($11000 > $1000) 1 2 0 0 0

!ota" e%penses $ 7 0 0 0 0

(-ecrease) in unrestricte, net assets $ ( 1 0 0 0 )

Cuu"ative increase in net assets beginning o /ear 1 2 0 0 0

Cuu"ative increase in net assets en, o /ear $ 1 1 0 0 0

?id4Cit3 Spo!ts C+


*+%e ,-. /--6

Assets

Current assets:

Cash ($;000 > $20000 > $28000 > $#000 $''000 > $'000) $ 1 3 0 0 0

Investents in securities ' 8 0 0 0

+ssessents receivab"e 1 0 0 0 0

Inventories 1 0 0 0

!ota" current assets $ 8 2 0 0 0

P"ant assets:

$'4000 $''000) $ 1 1 0 0 0

&et assets:

6ebership certiicates 100 at $1000 each (no change ,uring the /ear) $ 1 0 0 0 0 0

Cuu"ative increase in net assets 1 1 0 0 0

!ota" net assets (unrestricte,) $ 1 1 1 0 0 0

!ota" "iabi"ities = net assets $ 1 2 2 0 0 0


A( Modern Advanced Accountin, !0"e


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>A 5inutes, trongState U%i(e!sit3 P!" 16#

State U%i(e!sit3

*o+!%a E%t!ies

Fo! )ea! E%ded *+%e ,-. /--6

U%!est!i'ted Rest!i'ted E%do5$e%t

T!a%sa'tio% F+%d F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2 d! 0'!2

(1) Cash ' 0 0 0 0 ' 0 0 0 0

*un, 5a"ance ( ' 0 0 0 0 ) ( ' 0 0 0 0 )

Investent in .ecurities ' 0 0 0 0

Cash ( ' 0 0 0 0 )

(2) Cash 1 # 8 # 0 0 0

-eerre, Revenue # # 0 0 0

+ccounts Receivab"e @$1;00000

($1#8#000 > $##000)A 1 4 8 0 0 0

Revenues (1 ; 0 0 0 0 0 )

Cash 1 ' 8 0 0 0

-eerre, Revenues ( 1 ' 8 0 0 0 )

(3) Cash 3 4 ; 0 0 0

+""oance or -oubtu" +ccounts 1 0 0 0

+ccounts Receivab"e ( 3 ' 0 0 0 0 )

%penses 3 0 0 0

+""oance or -oubtu" +ccounts ( 3 0 0 0 )

(4) Cash # 0 0 0

Revenues ( # 0 0 0 )

(') Cash 7 ' 0 0 0

.tate +ppropriation Receivab"e ( 7 ' 0 0 0 )

.tate +ppropriation Receivab"e ' 0 0 0 0

Revenues ( ' 0 0 0 0 )

(#) Cash 2 ' 0 0 0

Revenues ( 2 ' 0 0 0 )

(7) Cash 2 # 0 0 0

Investents in .ecurities ( 2 1 0 0 0 )

*un, 5a"ance ( ' 0 0 0 )

Cash 1 ; 0 0

*un, 5a"ance ( 1 ; 0 0 )

(8) %penses 1 7 7 7 0 0 0

Cash ($1777000 $';000) (1 7 1 8 0 0 0 )

+ccounts Pa/ab"e ( ' ; 0 0 0 )

0Co%ti%+ed o% pa9e 8;B"2


#olutions Manual, Chapter !6 A


20/25

State U%i(e!sit3 0'o%'+ded2 P!" 16#

State U%i(e!sit3


Fo! )ea! E%ded *+%e ,-. /--6

U%!est!i'ted Rest!i'ted E%do5$e%t

T!a%sa'tio% F+%d F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2 d! 0'!2

(;) %pen,itures 1 3 0 0 0

Cash ( 1 3 0 0 0 )

*un, 5a"ance 1 3 0 0 0

Revenues ( 1 3 0 0 0 )

(10) +ccounts Pa/ab"e 4 ' 0 0 0

Cash ( 4 ' 0 0 0 )

(11) Cash 7 0 0 0

*un, 5a"ance ( 7 0 0 0 )


A8 Modern Advanced Accountin, !0"e


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>A 5inutes, trongResta(e% Hospita P!" 16#B

Resta(e% Hospita

*o+!%a E%t!ies

Fo! )ea! E%ded e'e$e! ,1. /--6

Pa%t

Ge%e!a Repa'e$e%t a%d E%do5$e%t

T!a%sa'tio% F+%d E=pa%sio% F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2 d! 0'!2

(1) +ccounts Receivab"e 1 1 0 1 0 0 0

Patient .ervice Revenues (1 1 0 1 0 0 0 )

(2) -oubtu" +ccounts %pense 3 0 0 0 0

Contractua" +,Gustents 1 ' 0 0 0

+""oance or -oubtu" +ccounts ( 3 0 0 0 0 )

+ccounts Receivab"e ( 1 ' 0 0 0 )

(3) 6ortgage 5on,s Pa/ab"e 1 8 0 0 0

Cash ( 1 8 0 0 0 )

(4) Cash ' # ' 0 0

nrestricte, it Revenue ( ' 0 0 0 0 )nrestricte, Revenue ro

n,oent *un, ( # ' 0 0 )

Cash # ' 0 0

*un, 5a"ance ( # ' 0 0 )

*un, 5a"ance # ' 0 0

Cash ( # ' 0 0 )

(') *un, 5a"ance 2 # 0 0 0

Cash ( 2 # 0 0 0 )

uipent 2 # 0 0 0

*un, 5a"ance -esignate, or

P"ant +ssets ( 2 # 0 0 0 )

Cash ' 0 0

+ccuu"ate, -epreciation o

uipent ($24000 $2400) 2 1 # 0 0


22/25

Resta(e% Hospita 0'o%'+ded2 P!" 16#B

Resta(e% Hospita


Fo! )ea! E%ded e'e$e! ,1. /--6

Pa%t

Ge%e!a Repa'e$e%t a%d E%do5$e%t

T!a%sa'tio% F+%d E=pa%sio% F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2 d! 0'!2

(7) Cash ; 8 ' 0 0 0

+ccounts Receivab"e ( ; 8 ' 0 0 0 )

+""oance or -oubtu" +ccounts 1 1 0 0 0

+ccounts Receivab"e ( 1 1 0 0 0 )

(8) +ccounts Pa/ab"e 8 2 ' 0 0 0

Cash ( 8 2 ' 0 0 0 )

(;) &ursing .ervices %pense 3 7 0 0 0

Inventor/ o .upp"ies ( 3 7 0 0 0 )

(10) Interest Receivab"e 8 0 0*un, 5a"ance ( 8 0 0 )

(11) -epreciation %pense 1 1 7 0 0 0


5ui",ings ( 4 4 0 0 0 )


uipent ( 7 3 0 0 0 )

(12) Interest %pense # 1 0 0

+ccrue,


23/25

>A 5inutes, trongLi!a Coe9e P!" 16#1-

Li!a Coe9e

*o+!%a E%t!ies

Fo! )ea! E%ded *+%e ,-. /--6

U%!est!i'ted Rest!i'ted

T!a%sa'tio% F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2

(1) Cash 3 0 0 0 0 0 0

+ccounts Receivab"e !uition an, *ees ( 3 # 2 0 0 0 )

!uition an, *ees Revenue (2 ' 0 0 0 0 0 )

-eerre, Revenues ( 1 3 8 0 0 0 )

(2) -eerre, Revenues 2 ' 0 0 0

!uition an, *ees Revenue ( 2 ' 0 0 0 )

(3) +""oance or -oubtu" +ccounts ($3#0000 > $1'000

$3#2000) 1 3 0 0 0

+ccounts Receivab"e !uition an, *ees ( 1 3 0 0 0 )

-oubtu" !uition an, *ees %pense @$10000

($1'000 $13000)A 8 0 0 0

+""oance or -oubtu" +ccounts ( 8 0 0 0 )

(4) .tate +ppropriation Receivab"e # 0 0 0 0

overnent rants Revenue ( # 0 0 0 0 )

(') Cash 8 0 0 0 0

Private its Revenue ( 8 0 0 0 0 )

*un, 5a"ance 3 0 0 0 0

Cash ( 3 0 0 0 0 )

(#) Cash 1 8 0 0 0

*un, 5a"ance ( 1 8 0 0 0 )

Cash 3 1 0 0 0

Investent in .ecurities ( 2 ' 0 0 0 )

*un, 5a"ance ( # 0 0 0 )

Investents in .ecurities 4 0 0 0 0

Cash ( 4 0 0 0 0 )

(7) ,ucationa" an, enera" %penses 2 ' 0 0 0 0 0

+ccounts Pa/ab"e (2 ' 0 0 0 0 0 )

+ccounts Pa/ab"e ($100000 > $2'00000 $7'000) 2 ' 2 ' 0 0 0

Cash (2 ' 2 ' 0 0 0 )

0Co%ti%+ed o% pa9e 86,"2


#olutions Manual, Chapter !6 A>


24/25

Li!a Coe9e 0'o%'+ded2 P!" 16#1-

Li!a Coe9e


Fo! )ea! E%ded *+%e ,-. /--6

U%!est!i'ted Rest!i'ted

T!a%sa'tio% F+%d F+%d

%o" Led9e! a''o+%ts d! 0'!2 d! 0'!2

(8) +ccounts Pa/ab"e ' 0 0 0

Cash ( ' 0 0 0 )

(;) Pa/ab"e to Other *un,s 4 0 0 0 0

Cash ( 4 0 0 0 0 )

(10) ,ucationa" an, enera" %penses ($40000 % K) 1 0 0 0 0

.hort!er Prepa/ents ( 1 0 0 0 0 )


A? Modern Advanced Accountin, !0"e


25/25

>A 5inutes, trongisad(a%ta9ed Cid!e% Asso'iatio% P!" 16#11

isad(a%ta9ed Cid!e% Asso'iatio%


Fo! )ea! E%ded *+%e ,-. /--6

Changes in unrestricte, net assets:

Revenue an, gains:

Contributions $ 3 2 0 0 0 0

6ebership ,ues 2 ' 0 0 0

Progra service ees 3 0 0 0 0

Investent revenue an, gains 1 0 0 0 0

!ota" unrestricte, revenues an, gains $ 3 8 ' 0 0 0

%penses:

Progra $ 2 7 0 0 0 0

6anageent an, genera" ($4'000 > $2000) 4 7 0 0 0

*un, raising 8 0 0 0

!ota" e%penses $ 3 2 ' 0 0 0

Increase in unrestricte, net assets $ # 0 0 0 0

Changes in teporari"/ restricte, net assets:

Contributions $ 1 ' 0 0 0

6anageent an, genera" e%penses ( 4 0 0 0 )

*un,raising e%penses ( 1 0 0 0 )Increase in teporari"/ restricte, net assets $ 1 0 0 0 0

Increase in net assets $ 7 0 0 0 0

&et assets beginning o /ear ($12000 > $2#000 >

$3000) 4 1 0 0 0

&et assets en, o /ear $ 1 1 1 0 0 0

isad(a%ta9ed Cid!e% Asso'iatio%


*+%e ,-. /--6

Assets

Cash ($40000 > $;000) $ 4 ; 0 0 05euest an, interest receivab"e ($'000 > $1000) # 0 0 0

P"e,ges receivab"e (net) ($12000 $3000) ; 0 0 0

Investents in securities at air va"ue 1 0 0 0 0 0

!ota" assets $ 1 # 4 0 0 0

Liaiities 7 Net Assets

$10000) 1 3 0 0 0!ota" net assets $ 1 1 1 0 0 0

!ota" "iabi"ities = net assets $ 1 # 4 0 0 0

Documents

Modern Advanced Accounting