18/4
please fix Req B
. The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $120,000; contributions receivable (net) of $220,000; investments of $320,000; and land, buildings, and equipment of $220,000. In addition, its unrestricted net assets were $440,000, temporarily restricted net assets were $120,000, and permanently restricted net assets were $320,000. 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 $40,000 on the contributions receivable. Received cash of $120,000 on the contributions and wrote off another $6,000 as uncollectible. Received unrestricted cash gifts of $200,000. Paid salaries of $110,000 with $35,000 of that amount coming from restricted funds. Received a cash gift of $32,000 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 $520,000 by signing a long-term note for $460,000 and using restricted funds for the remainder. Collected membership dues of $50,000. Individuals receive substantial benefits from the memberships. Received income of $50,000 generated by the permanently restricted net assets. Paid rent of $32,000, advertising of $35,000, and utilities of $36,000. Received an unrestricted pledge of $220,000; it will be collected in five years. The organization expects to collect the entire amount. Present value is $169,000. It then recognized interest of $8,000 for the year. Computed depreciation as $60,000 Paid $35,000 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, Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a statement of activities for this entity for this year. WATSON FOUNDATION Statement of Activities For Year Ending December 31, 2017 Unrestricted Temporarily Restricted Net Assets Net Assets Permanently Restricted Net Assets 200,000 201,000 50,000 50,000 40,000 8,000 340,000 $ 209,000 95,000 (95,000) 435,000 $ 114,000 $ Contributed support Membership revenue Investment revenue Contributions - interest Total support and revenues Net assets released from restriction Total support, revenues, and net assets released from restriction Expenses: General and administrative: Rent expense Salary expense Advertising expense It is ANCA 0 $ 0 OOO 32,000 110,000 35,000 ISIC 26 non 50,000 50,000 40,000 340,000 95,000 8,000 209,000 (95,000) $ $ 435,000 $ 114,000 $ PO Membership revenue Investment revenue Contributions - interest Total support and revenues Net assets released from restriction Total support, revenues, and net assets released from restriction Expenses: General and administrative: Rent expense Salary expense Advertising expense Utilities expense Depreciation expense Interest expense 32,000 110,000 35,000 36,000 60,000 35,000 $ 308,000 s 0 0 Total expenses Excess of total support, revenues and net assets released from restriction over expenses Net assets at beginning of year Net assets at end of year $ 127,000 $ 114,000 440,000 567,000 $ $ 120,000 234,000 320,000 320,000 $ Required A Required B Prepare a statement of financial position for this entity at the end of this year. WATSON FOUNDATION Statement of Financial Position December 31, 2017 Assets Cash Contributions receivable (net) Investments Land, buildings and equipment (net) $ 264,000 317,000 320,000 60,000 Total assets 680,000 $ 1,581,000 $ 460,000 Liabilities Notes payable Net Assets Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets $ 567,000 Total liabilities and net assets 567,000 $ 1,027,000
