Assume that a non$-$profit organization Louisiana Natural History Center $($LNHS$)$ started its fiscal year with the following balances $($shown in alphabetical order$)$:

tem

$ Amount

Accounts Payable

$$5,000$

Accounts Receivable

$$9,000$

Buildings and Equipment, NET

$$550,000$

Cash

$$70,000$

Inventory

$$10,000$

Notes Payable

$$300,000$

Permanently Restricted Net Assets

$$300,000$

Pledges Receivable

$$361,000$

Temporarily Restricted Net Assets

$$30,000$

Unrestricted Net Assets

$$360,000$

Wages Payable

$$5,000$

LNHC had the following highly summarized financial events during the current year:

$3$ Ordered new equipment with a useful life of $5$ years, for $$40,000.$ No payment was made and no equipment has been delivered.

$10$ Received $$200,000$ from a donor. The donor had pledged the money the prior year and the donation was treated as revenue in that year.

$17$ Purchased $$30,000$ of books and posters that will be sold in its store. A payment of $$5,000$ was made on that date, and the balance is owed to the supplier. LNHC expects to sell the inventory for $$65,000.$

$4$ Paid $$10,000$ deposit for the equipment ordered on Jan. $3.$

$30$ Received the equipment ordered on Jan. $3$ and paid the balance owed to the supplier in full.

$1$ Paid $$75,000$ of its debt on bills sent by its creditors.

$3$ Purchased a bus that will be used for LNHC operational activity. Full payment of $$50,000$ was made at the time of purchase.

$27$ Tour and admission fees for the year were $$90,000.$ They were all collected.

$27$ LNHC paid its employees $$65,000$ of wages. Wage expense for the year is $$82,000.$ The payment included $$5,000$ wages payable balance outstanding from the previous year plus some payment for the work done this year.

$28$ Negotiated the purchase of a second bus for its operational activities for $$50,000.$ They have not paid nor received the bus, but expect it to be delivered within next $20$ business days.

$29$ Book and poster sales for the year totaled $$50,000.$ All but $$5,000$ of that amount has been collected. $50\%$ of the balance of accounts receivable from the beginning of the year was also collected. The cost of goods sold was $$25,000.$

$29$ LNHC$$s accumulated bus depreciation is $$5,000.$

$29$ LNHC makes a payment on its long term mortgage $($notes payable$)$ of $$127,000.$ The note includes interest expense of $$12,000$

$31$ LNHC buildings are now one year older. Depreciation for the year is $$50,000.$

$31$ LNHC estimates that $$1,500$ of the receivables for book and poster sales made this year will never be collected.

Create the beginning balance sheet for LNHC$.$

Record all above mentioned transactions in a worksheet similar to Exhibit $10-7$ on page $393(3$rd edition of the book$).$

Prepare the ending balance sheet for LNHC$.$

Create a comparative statement of Financial Position LNHC $($Exhibit $10-5).$

Create a statement of Cash Flows for the fiscal year under analysis.

Create an activity statement $($operating statement$)$ for the fiscal year under analysis.

What do you learn from these statements about LNHC position for that year? What questions do these statements raise?

A medical lab uses medical substances for its tests. It started the year on January $1,$ with an inventory of $3,000$ doses of that medical substance that cost $$20$ per dose. On January $3$ it purchased another $1,000$ doses for $$24$ each. From January $3$ through June $30$ it used $2,600$ doses. On July $1$ it bought $700$ more doses at $$29$ each. From July $2$ through the end of the year it used $1,500$ doses.

Questions:

What is the inventory value at the end of the year, assuming LIFO?

What is the inventory value at the end of the year, assuming FIFO?