CHAPTER 19 Reporting the Resuita of Operatios a9a Problems 10-14. For each of the transactions below, reeord 4 May 29. Paid a $5,000 deposit for the S. June 12. Collected $80,0oo in new 6. September 1. Bought $60,000 of books whether it would result in an increase or partitions ordered on Pebruary 4 decrease in assets, liabilities, and/or net assets. An organization: donations. Earns revenue z. Receives a donor pledge. 3. Purchases supplies with cash. 4. Purchases supplies on account. 5. Takes out a loan. 6. Repays loan principal 7. Receives payment on a pledge. 8. Makes a payment on an amount it owes. 9. Prepays for insurance 1o. Uses prepaid insurance. 11. Uses supplies. ARCH has sponsored in the past to sell in its online bookstore. It paid half now and still owes the other half, to be paid at the end of the year. ARCH has bud- geted to sell the books for $100,000 total. 7. October 15. The partitions ordered on February 4 arrived, and ARCH paid for the balance owed. November 10. Borrowed $75,000 from 8. 12. Uses a capital asset. 13. Receives cash in advance of providing its bank on a note payable. 9. December 5. Repaid $25,0oo on the goods or services to a client. note payable and also $3,000 in inter est expenses. 14. Provides goods and services to a client in exchange for a cash payment that was made in advance. 10. December 28. Paid its employees $75,000 of wages in cash for the year 15. Employs workers who earn wages $70,000 of which was for the cur- rent year and $5,0oo of which was for the outstanding balance owed. Employees earned $90,000 in wages 16. Pays employee wages that have been earned. 17. Deems a portion of a pledge is uncollectible. 18. Pays interest on a loan. 11. December 31. Book sales from the 10-15. The American Research Council for Humanities (ARCH) had the following Internet bookstore totaled $110,000, and the cost of the books sold was $58,000. ARCH has not collected financial events during the current year: January 12. Received a $300,000 pay- $12,000 of the sales. The balance owed 1. aid. ment from a pledge made last year. 2. February 4. Placed an order for new cubicle partitions with 5-year useful lives, for $15,000. ARCH uses straight- line depreciation. Payment was not yet made, and the partitions have not yet 12. ARCH expects that of the $12,000 not collected to date, it will collect $10,000 13. December 31. Depreciation orn ARCH's building for the year is $40,000 been delivered. 3. March 1. Paid out a $50,000 grant to the Governmental Archeologi cal Research Committee for History (GARCH). This was a new grant made Record these transactions and any other required adjusting entries by showing their impact on the fundamental equation of accounting or our l entries. in the current fiscal year
