Chapter 18 Homework Help Save & Exit Submit Check my work 11 Part 6 7 Required information Problem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8) The following information applies to the questions displayed below) For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900.000, total abilities of $100.000, net assets without donor restriction of $400,000 and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total expenses for Year 2 were $500,000 and reported under net assets without donor restrictions. Each part that follows should be viewed as an independent situation Problem 18-45 Part Three Assume that at the beginning of Year 1, the entity received $50,000 in cash as a donation with the stipulation that the money be used to buy a bus or be returned to the donor. At that time, the entity increased cash and increased contributed revenue under net assets with donor restrictions. On the first day of Year 2, the $50,000 was spent on the bus. The entity reclassified $50,000 from net assets with donor restrictions to net assets without donor restrictions. At the end of Year 2. the entity recorded $5.000 as depreciation expense, a figure that was shown as a reduction under net assets without donor restrictions. Required: a. What was the appropriate amount of net assets with donor restrictions to be reported at the end of Year 1? Met assets with donor restrictions to be reported at the end of Your 1 ME Chapter 18 Homework Help Save & Exit Submit Check my work 11 Required information Part 3 7 b. What was the appropriate amount of net assets without donar restrictions to be reported at the end of Year 22 Met on without donar restrictions to be reported at the end of Year 2 What was the appropriate amount of expenses to be reported under net assets without donor restrictions for the year ending December 31 Year 2? perses to be reported d. What was the appropriate amount of net assets with donar restrictions to be reported at the end of Year 2? Niets with donor restrictors to be reported at the end of Year 2
