Exercise 10-13 (Algo)

The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following preclosing trial balance at December 31, 2020, the end of its fiscal year:

Trial BalanceDecember 31, 2020		Debits			Credits
Accounts payable				$	24,700
Accounts receivable (net)	$	46,500
Accrued interest receivable		16,700
Accumulated depreciation					3,417,300
Cash		115,900
Contributed services					27,600
Contributionsno restrictions					2,446,000
Contributionspurpose restrictions					830,000
Contributionsendowment					2,768,100
Current pledges receivable		79,600
Education program expenses		1,603,200
Fund-raising expenses		122,500
Investment revenuepurpose restrictions					91,100
Training seminars expenses		4,745,100
Land, buildings, and equipment		5,855,800
Long-term investments		2,862,300
Management and general expenses		406,600
Net assets without donor restrictions					479,800
Net assets with donor restrictions					2,045,000
Net gains on endowments - no restrictions					18,200
Noncurrent pledges receivable		390,200
Program service revenue - no restrictions					5,978,100
Post-employment benefits payable (long-term)					200,900
ReclassificationSatisfaction of program restrictions		267,400
ReclassificationSatisfaction of time restrictions		215,600
ReclassificationSatisfaction of program restrictions					267,400
ReclassificationSatisfaction of time restrictions					215,600
Research program expenses		1,296,800
Short-term investments		752,600
Supplies inventory		33,000
Totals	$	18,809,800		$	18,809,800

Required: a. Prepare closing entries for the year-end, using separate entries for each net asset classification. b. Prepare a Statement of Activities for the year ended December 31, 2020. c. Prepare a Statement of Financial Position as of December 31, 2020.

Journal entries possible:

• No Journal Entry Required
• Contributed Serviceswithout Donor Restrictions
• Contributions to Endowmentwith Donor Restrictions
• Contributions to Programswith Donor Restrictions
• Contributionswithout Donor Restrictions
• Education Program Expense
• Fund-Raising Expense
• Investment Revenuewith Donor Restrictions
• Management and General Expense
• Net Assetswith Donor Restrictions
• Net Assetswithout Donor Restrictions
• Net Gains on Endowment Investmentswithout Donor Restrictions
• Program Service Revenuewithout Donor Restrictions
• Reclassification from Net Assets with Donor RestrictionsExpiration of Time Restrictions
• Reclassification from Net Assets with Donor RestrictionsSatisfaction of Program Restrictions