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P13.14 Prepare Complete Financial Statements The information below was taken from the records of the Intemational Society of Accounting Professionals, a private NFP organization, for
P13.14 Prepare Complete Financial Statements The information below was taken from the records of the Intemational Society of Accounting Professionals, a private NFP organization, for the year 2020. The Society promotes the accounting profession through public events and member benefits. All dollar amounts below are in thousands The Society's trial balance at January 1, 2020, is as follows: Cash....... Investments ............ .. Contributions receivable, net......... Buildings and equipment, net .. Accounts payable...... Net assets without donar restrictions ........... Net assets with donor restrictions .. $ 225 850 200 4,000 (300) (2,300) (2.675) Activities for 2020 are listed below. The Society reports expenses in three categories on its statement of activities: programs, administrative, and fund-raising 1. Unrestricted cash contributions were $5,200. 2. Documented promises to contribute were received at the beginning of 2020. Their present value is S350, using a percent discount rate. No cash was received during 2020 on these promises. 3. The contributions receivable of $200 outstanding at the beginning of 2020 are promises that were discounted at a 3 percent rate. At the end of 2020, $75 in cash is received on these promises. There are no donor restrictions on these contributions. 4. Cash endowments of $250 were received in 2020. The cash was immediately invested in securities There are no donor restrictions on income or gains and losses. 5. The Society received a state grant of $500, restricted to the development of a special exhibit on accounting practice. The Society spent $100 in cash on the exhibit, all designated as program ex- penses. 6. Donor-restricted resources are accumulated for specific events. During the year, $200 of donor restricted cash, received in previous years, was spent. I lalf was for program expenses and the other hall was for equipment. 7. Out-of-pocket operating expenses for the year were $5,000. The year-e all related to operating expenses, was $280. Operating expenses are mostly joint costs, and are al located 60 percent to programs, 30 percent lo administrative, and 10 percent to fundraising 8. Depreciation for the year on buildings and equipment was $800. All depreciation is allocated as fol- lows: 60 percent to programs, 35 percent lo administrative, and 5 percent to fund raising. 9. The following donated services were provided in 2020: a Contractors donated services to build an addition to the building, fair value $160. b. CPAS donated services to handle payroll, taxes, and legal documents, fair value $75. These Services are considered administrative. 10. Investment income for the year is $25, all received in cash. There are no donor restrictions on invest ment income. 11. The securities with a balance of $850 at the beginning of the year are an endowment of securities; a clonor gave these securities to the Society with the stipulation that they were not to be sold. The fair value of these securities at year-end is $835. The securities, in 4. above, have a fair value of $270 al year-end. Required Prepare, in good form, the following financial statements for the International Society of Accounting Professionals. a. Statement of activities for 2020. b. Statement of financial position for 2020. C. Statement of cash flows for 2020. Use the indirect method for the operating activities
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