Question
Description of the Organization: The Kids Planet Club is a (fictitious), tax-exempt entity under IRC Sec. 501(c)3 whose mission is educate students in K-12 grades
Description of the Organization: The Kids Planet Club is a (fictitious), tax-exempt entity under IRC Sec. 501(c)3 whose mission is educate students in K-12 grades to think about traveling to another planet. The organization files an annual IRS Form 990 but has never prepared GAAP financial statements. You are the board member with financial expertise and have decided that you will move the organization closer to being in compliance with GAAP by at least drafting a balance sheet and operating statement for now, and next year adding the statement of cash flows and statement of functional expenses.
Prepare the statement of financial position and statement of activities for this NFP in good form following the examples in Module 3 of the coursepack based on the adjusted trial balance provided below. Open a new tab (worksheet) for each of the statements and name them "XSFP" and "XSoA" where X is your last name; for example, "ConverySFP".
Kids Planet Club | |||
Adjusted (pre-closing) Trial Balance | |||
as of December 31, 2018 | |||
Debit | Credit | ||
Cash and cash equivalents | $ 201,460 | ||
Contributions receivable, net of uncollectible accounts | 32,421 | ||
Grants receivable | 20,000 | ||
Inventory - supplies | 25,985 | ||
Prepaid expenses | 13,000 | ||
Long-term investments, at fair value | 61,442 | ||
Capital assets, net of accumulated depreciation | 76,010 | ||
Accounts payable | $ 26,890 | ||
Capital lease obligations payable | 6,500 | ||
Notes payable | 17,000 | ||
Net assets without donor restrictions | 131,492 | ||
Net assets with donor restrictions | 94,813 | ||
Contributions - without donor restrictions | 129,956 | ||
Contributions - with donor restrictions | 57,875 | ||
In-kind contributions - unrestricted | 54,365 | ||
In-kind donations - temporarily restricted | 36,005 | ||
Government grants - unrestricted | 32,154 | ||
Interest and dividend income | 1,080 | ||
Realized and unrealized loss on investments | 220 | ||
Net assets released from restrictions | 28,697 | 28,697 | |
Program service expenses* | 117,035 | ||
Supporting service expenses* | 40,557 | - | |
Totals | $ 616,827 | $ 616,827 | |
NOTE: * Only functional, not natural (line-item) expense categories provided here. |
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