Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The

image text in transcribed
image text in transcribed
Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2020, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. The following are statements of financial position for both charities at that date. HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and net assets $1,790,000 188,888 395,000 795,eee $3,088,000 $285,000 1.195,000 $1,400,000 $1,290,000 398, eee $1,688,000 $3,688,000 SWIM FOR SAFETY Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipoent (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and net assets $690,000 248,000 265,000 685,000 $1,888, eee $260,000 715,000 $975.ee $515,eee 398,600 $913.000 $1,888,00 The buildings and equipment reported by Help & Save have a fair value of $1,014,000. The buildings and equipment reported by Swim For Safety have a fair value of $806,000 Required: a. Assume Help & Save pays $1.19 million in cash from its net assets without donor restrictions to gain complete control over Swim For Safety. If it is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. what balances will appear on the statement of financial position immediately after control is gained? (Enter your answers in dollars not in millions of dollars.) HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment inet) Goodwill Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Net assets without door restrictions Net assets with dono restrictions Total net assets Total liabilities and net assets $ 0 $ O 0 $ $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions