• Limit question 10-17 to:
  "Use problems 10-15 and 10-16 to prepare an activity statement (operating statement) and a statement of cash flows (using the direct method)."

  

 

 

FINANCIAL MANAGEMENT FOR PUBLIC, HEALTH, AND NOT-FOR-PROFIT ORGANIZATIONS 14. provides goods and services to a client in exchange for a cash payment that was made in advance. 15. employs workers who earn wages. 16. pays employee wages that have been earned. 17. deems a portion of a pledge is uncollectible. 18. pays interest on a loan. 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 payment 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 Archeological Research Committee for History. 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 budgeted 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.