Avdanced Financial Accounting

The Far North Centre (the Centre) is an anti-poverty organization funded by contributions from governments and the general public. For a number of years, it has been run by a small group of permanent employees with the help of part-timers and dedicated volunteers. It owns its premises, which are in the process of being renovated. The funds for this were obtained through a special capital fund campaign carried out last year. Its main program is the daily provision of meals to the needy. It also distributes clothing, most of which is donated. Operating funds come from government grants, interest earned from endowment investments, and a public campaign held in the latter part of each year to raise funds for the needs of the next fiscal year. The Centre maintains its records in accordance with the restricted fund method of accounting for contributions, and prepares its financial statements using an operating fund, a capital fund (for all activities related to capital assets), and an endowment fund. The following are the fund trial balances as at January 1, Year 6: Debit Credit 5 702,800 75e.ee 3 be.ee Operating Fund cash Pledges receivable Allowance for uncollectible pledges Grants receivable Accounts payable wases payable Accrued 11bilitie Deferred contribution revenue Fund balance 291,00 463.88 169,00 1420 90.ee 116, Bea 51.753.ee 243 $1.753.000 dita Fund ash Grantiivable Land and building Funnicutangguplent Acented ortization Account Divable Hund balance 382, 154, 5ee 832 $60,000 s bee 13. 1.250 $1933,00 1953 Endo das MES and and be SS. Untano Real Estate Prime Videos Arco Wages payable Accrued liabilities Deferred contribution revenue Fund balance 169, de 14,200 930, eee 116 800 51,753, eee $1,753,000 Capital Fund Cash Grants receivable Land and building Furniture and equipment Accumulated amortization Accounts payable Fund balance $ 387,660 154, see 832,000 560,00 $ 670,000 13,30 2,250/200 $1,933, See $1,933,5e Endowment Fund Cash Investments Fund balance $ 46, 46.ee 5586, 56. Baa 3506, Bee The following transactions took place in Year 6: An amount of $43,800 from the endowment fund cash was invested in marketable securities office equipment costing $4,350 was purchased with operating fund cash. 3. Invoices totalling $1,505,000 were received for goods and services. These invoices were recorded as accounts payable and were allocated 5596 to food program 20 to clothing program and 25% to administration 4. The capital fund grants receivable of $154,500 were collected in fun, and the $13.300 in accounts payable was 0310. During Year 6. building renovations costing $394.000 and equipment purchases of $121,500 were made. Of these costs 90% was pald with the balance held back and still owing at yesnend 5. Operating una accounts payable amounting to $1.500.000 and the wages payable and accrued cities at the beginning of the Hem were ad BA of the operating indledes recevoler and grants receivable at the beginning of the year were collected 7 The deferred revenue franceses campanade to the following b. Operating fund accounts payable amounting to $1,600,000 and the wages payable and accrued tabulnies at the beginning of the year were all paid. 6. All of the operating fund pledges receivables and grants receivable at the beginning of the year were collected in full 7. The deferred revenue from the Year 5 fundraising campaign was made up of the following: Contributions for Year 6 activities Less! Campaign expense $ 1,368, Bee 438,00 $ 930,80 Ok The Centre runs the campaign with its own people and is fully responsible for al decisions made during the campaign it nes 8. Government grants for operating purposes totalled $824.000, of which $800,000 was received during the year, with the balance expected early in Year 7 9. The total wage costs for the year amounted to $362.500, of which $275.000 was paid and $87.500 is payable at year-end These costs are to be allocated 40% each to the food and clothing programs, with the balance to administration 10. The campaign to raise funds for next year's operations was held in December Cash of $608.000 was collected and pledges of $720.000 were recelved. It is expected that 5% of these pledges will be uncollectible. Total fundraising costs were $488.000, of which $116.500 is still owed to suppliers 11. An endowment contribution of $15,000 cash was received. In addition, the investments in the endowment fund earned $35.400 in Interest 12. The annual depreciation on the bulldings and equipment amounted to $101.000 Required: (o) Prepare the foumal entries necessary to relect the Year 6 events. If no entry is required for a transaction event select "No Journal entry required in the first account field.) Will (b) For each fund, prepare a Year 6 statement of financial position and statement of operations and changes in fund balance input amounts as positive values. Omit $ sign in your response.) The Far North Centre Operating Fund Statement of Financial Position Deceber 31, Year 6 Cash pledges receivable Allowance for uncollectible pledges Grants receivable Des Accounts payable Wages payable Deferred revenue Total liabilities Fund balance 5 Operating und Statement of Operations and Changes in Fund Balance for the Year Ended December 31, Year 6 Ratedbutions over FREE 1 Revenue perung und Statement of Operations and Changes in Fund Balance for the Year Ended December 31, Year 6 Contributions Government grants - Interest es klipped Book Expenses Food program - expenses Wages Clothing program - expenses - wages Administration Fundraising Print erences Excess of expenses over revenue Transfer to capital fund Excess of expenses and transfers over revenue Fund balance beginning of year Fund balance - end of year The Far North Centre Capital Fund Statement of financial position December 31 Year 6 ali Land and building and intent Amaten 1 Sints Skipped Capital Fund Statement of Revenue and Expenditure and Changes in Fund Balance for the Year Ended December 31, Year 6 Expenses Depreciation Excess of expenses over revenue Transfer from operating fund Excess of expenses and transfers over revenue Fund balance - beginning of year Fund balance end of year eBook Print References The Far North Centre Endowment Fund Statement of financial position December 31, Year 6 cash Investments Fund Balance Endowment Fund Statement of Revenue and Expenses and Changes in Fund Balance for the Year Ended December 31 Year 6 Henibution venue sexe denna (c) Prepare closing entries. (If no entry is required for a transaction/event, select "No Journal entry required in field.) View transaction list Journal entry worksheet