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please plug in you cant answer it on here ? The Watson Foundation, a private not-for profit entity, starts 2020 with cash of $100,000, contributians
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The Watson Foundation, a private not-for profit entity, starts 2020 with cash of $100,000, contributians racelvoble (riet) of $200,000, investments of $300,000, and land, buldings, and equipment (net) of $200000 Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, 5300,000 was purpose restricted whereos the other $100,000 had to be held permanently, although the subsequently earned income is without restriction Fifty percent of the purpose restricted net assets had to be used to help poy for a new building. The remoinder wos restricted to the payment of otficer selaries. Donors mude no stipulations about the eventual reporting of buildings and other long-fived assets when acquired. Wotson has one program service (health care) and two supporting services (fundraising and administrative) During the current year, Watson Foundation has the following transactions 1. Computed interest of $20,000 on the unrestictied contribution recelvable 2 Recelved cash of $100,000 from the contributions recewable and wroto off another $4,000 as uncollectible 3. Recelved unrestricted cosh donations of $180,000 4. Receved $23,000 in cash that must be spent for a particular type of office machine within the next year or the money must be returned 5. Paid salorles of $90,000. Of that amount, $16,000 came from restncted funds. The payment was made to individuals doing health care work: 6 Spent the $23,000 in (4) for the eppropriate office machine. 7. Recelved a cash gift of $12,000 that Watson must convey to another specifued chanty However, Watson has the right to give this money to a different organization if officials so choose. 8. Bought a building for $500,000 by signing a long-term note for $450,000 and using restricted funds for the remainder 9 Collected annual membership dues of $30,000 Individuals teceive substantial benefits from their mernberships. By the end of the year, two-thirds of the time for the average membership has passed 10 Received unrestricted income of $41,000 generated by net assets that must be held permanently 11. The board of directors of the Watson Foundation vote to set aside $9.000 of its imestments for ernorgency purposes 12. Paid rent of $12,000 for the past month, odvertising of $15,000, and utilies of $16,000. These were half for the program service and onefourth each for the two supporting services 13. Received an unrestricted pledge of $200,000. Wotson will collect the money in five years and does not expect any part to be uncollectible. Present value at inception is $149,000, but interest for the year to date is $6,000. 14. Computed depreciation of $40.000,60 percent for health care, 30 percent for adrinistrative, and to percent for fundraising 15. Paid $15,000 in interest on the note signed in (8) All of this cost is assumed to be related to health care Required: a. Prepare a statement of activities for the Watson Foundation for this year (Negative amounts should be indicated by a minus sign.) a. Prepare a statement of activities for the Watson Foundation for this year (Negative amounts should be indicated by a minus sign.) b. Prepare a statement of financial position for the Watson Foundation at the end of this year. (Negative amounts should be indicated by a minus sign.) Step by Step Solution
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