Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 The Brown Training Centre is charitable organization dedicated to providing computer training to unemployed people. Individuals must apply to the centre and indicate why
1 The Brown Training Centre is charitable organization dedicated to providing computer training to unemployed people. Individuals must apply to the centre and indicate why they would like to take the three-month training session. If their application is accepted, they must pay a $200 deposit. The deposit is refunded upon successful completion of the course or is forfeited as a processing fee if the individual does not complete the course. o points During the first year of operations in Year 3,90 individuals were accepted into the course. Of these 90 individuals, 50 completed the course, 10 dropped out, and 30 were still taking the course at the end of the fiscal year. eBook Print References The centre receives most of its funding from the provincial government. During the year, the government advanced $1,000,000 to cover operating costs. Within two months of the year-end, the centre must provide financial statements prepared in accordance with GAAP. The government will cover all operating costs. The excess of amounts advanced over the amount expended must be carried over and applied to operating costs of the next year Operating costs to be reimbursed are defined to exclude purchases of capital assets and are to be reduced by the amount of application fees forfeited. A private company donated computers and office equipment with a fair value of $320,000. The centre was fortunate to receive this donation. Otherwise, it would have had to raise money through other means to purchase these items. The capital assets were put into use as of April 1, Year 3, and have an estimated useful life of three years. The centre uses the straight-line method to amortize its capital assets The part-time bookkeeper for the centre prepared the following cash flow statement for the year ended December 31, Year 3 Cash receipts Government grant Deposits from course participants Total cash receipts $ 1,980,000 18,80 1,016,0 Cash expenditures Salaries and benefits Administration and supplies Rent and utilities Refund of deposits Total cash disbursements 620,000 220,000 160, 10,00 1.010,000 Cash receipts Government grant Deposits from course participants Total cash receipts $ 1,000,000 18,000 1,018,000 Cash expenditures Salaries and benefits Administration and supplies Rent and utilities Refund of deposits Total cash disbursements Cash balance at end of year 620,000 220,000 160,000 10,000 1,010,000 $ 8,000 nces At the end of the year, the following costs had been incurred but not yet paid: $ Salaries and benefits Utilities 8,000 6,000 . The executive director of the centre has asked you for assistance in preparing the financial statements for the centre for the first year of operations. The deferral method should be used in accounting for the contributions. Required: (a) Not available in Connect. (b) Prepare the statement of revenues and expenses for the centre for the year ended December 31, Year 3. (Leave no cell blank, be sure to enter "O" wherever required. Omit $ sign in your response.) V QUI LU CHILGE WHICIEVE ICYuw. Voy" w your TEOHDE. 1 2000 Ints BROWN TRAINING CENTRE Statement of Revenues and Expenses Year ended December 31, Year 3 Revenues : Grant revenue $ Application fees forfeited Donation of computer equipment Total revenues Expenses: Salaries and benefits Administration and supplies Rent and utilities Amortization of computer equipment Total expenses Excess of revenue over expenses $ eBook Print 220000 References 80000 (c) Compute the following liabilities on the statement of financial position for the centre at December 31. Year 3 (0) Accrued liabilities Accrued liabilities (1) Deposits from course participants Deposits from course participants (ili) Deferred contributions $ Deferred contributions
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started