I NEED HELP ON 10-16
10-15. The American Research Council for Humanities (ARCH) had the following financial events during the current year: 1. January 12. Received a $300,000 pay- 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 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 in the current fiscal year. 4. May 29. Paid a $5,000 deposit for the partitions ordered on February 4. 5. June 12. Collected $80,000 in new donations. 6. September 1. Bought $60,000 of books 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. 8. November 10. Borrowed $75,000 from its bank on a note payable. 9. December 5. Repaid $25,000 on the note payable and also $3,000 in inter- est expenses. 10. December 28. Paid its employees. $75,000 of wages in cash for the year, $70,000 of which was for the cur- rent year and $5,000 of which was for the outstanding balance owed. Employees earned $90,000 in wages for the year. 11. December 31. Book sales from the Internet bookstore totaled $110,000, and the cost of the books sold was $58,000. ARCH has not collected $12,000 of the sales. The balance owed for the inventory was paid. 12. ARCH expects that of the $12,000 not collected to date, it will collect $10,000. 13. December 31. Depreciation on ARCH's building for the year is $40,000. Record these transactions and any other required adjusting entries by showing their impact on the fundamental equation of accounting or journal entries. 10-16. ARCH began the year with the following balances (shown in alphabetical order) in their accounts: Accounts Payable $ 27,000 Accounts Receivable, Net 26,000 Cash 10,000 Inventory 25,000 Notes Payable 270,000 Permanently Restricted Net Assets 100,000 Pledges Receivable 350,000 Property, Plant, and Equipment, Net 350,000 "Temporarily Restricted Net Assets 30,000 Unrestricted Net Assets 302,000 Wages Payable 32,000 Record this information and the transac- tions from Problem 10-15 in a worksheet similar to Exhibit 10-7. PROBLEM 10-16 TEMPLATE (Transactions Worksheet) (000's omitted) Assets Liabilities and Net Assets Net Assets Notes Pledges Cash Receivable Acc. Rec. Net PPE net Accounts Wages Payable Payable Payable Unrestricted Tempo- rarily Restricted Perma- nently Restricted Inventory Deposits Beginning Balance Transaction #1 1 Transaction #2 Transaction #3 3 Transaction #4 Transaction #5 Transaction #6 Transaction #7 Transaction #8 Transaction #9 Transaction #10 Transaction #11 Transaction #11 licon't) Transaction lcon't) Transaction #12 Transaction #13 Ending Balance SO SO SO SO SO SO SO SO SO SO SO SO 10-15. The American Research Council for Humanities (ARCH) had the following financial events during the current year: 1. January 12. Received a $300,000 pay- 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 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 in the current fiscal year. 4. May 29. Paid a $5,000 deposit for the partitions ordered on February 4. 5. June 12. Collected $80,000 in new donations. 6. September 1. Bought $60,000 of books 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. 8. November 10. Borrowed $75,000 from its bank on a note payable. 9. December 5. Repaid $25,000 on the note payable and also $3,000 in inter- est expenses. 10. December 28. Paid its employees. $75,000 of wages in cash for the year, $70,000 of which was for the cur- rent year and $5,000 of which was for the outstanding balance owed. Employees earned $90,000 in wages for the year. 11. December 31. Book sales from the Internet bookstore totaled $110,000, and the cost of the books sold was $58,000. ARCH has not collected $12,000 of the sales. The balance owed for the inventory was paid. 12. ARCH expects that of the $12,000 not collected to date, it will collect $10,000. 13. December 31. Depreciation on ARCH's building for the year is $40,000. Record these transactions and any other required adjusting entries by showing their impact on the fundamental equation of accounting or journal entries. 10-16. ARCH began the year with the following balances (shown in alphabetical order) in their accounts: Accounts Payable $ 27,000 Accounts Receivable, Net 26,000 Cash 10,000 Inventory 25,000 Notes Payable 270,000 Permanently Restricted Net Assets 100,000 Pledges Receivable 350,000 Property, Plant, and Equipment, Net 350,000 "Temporarily Restricted Net Assets 30,000 Unrestricted Net Assets 302,000 Wages Payable 32,000 Record this information and the transac- tions from Problem 10-15 in a worksheet similar to Exhibit 10-7. PROBLEM 10-16 TEMPLATE (Transactions Worksheet) (000's omitted) Assets Liabilities and Net Assets Net Assets Notes Pledges Cash Receivable Acc. Rec. Net PPE net Accounts Wages Payable Payable Payable Unrestricted Tempo- rarily Restricted Perma- nently Restricted Inventory Deposits Beginning Balance Transaction #1 1 Transaction #2 Transaction #3 3 Transaction #4 Transaction #5 Transaction #6 Transaction #7 Transaction #8 Transaction #9 Transaction #10 Transaction #11 Transaction #11 licon't) Transaction lcon't) Transaction #12 Transaction #13 Ending Balance SO SO SO SO SO SO SO SO SO SO SO SO
