Preparation of not$-$for$-$profit journal entries and financial statements

Music and Math Camp, Inc. is a not$-$for$-$profit organization dedicated to the development of music skills in kids through weekend and summer camp experiences. Research shows that learning to read music and play an instrument helps the brain work with the body leading to stronger memory and math skills.

The organization reported the following post$-$closing trial balance at the end of last year:

Beginning Balances: DR CR

Cash $$187,200$

Investments $2,496,000$

Contributions receivable $540,800$

Property, plant and equipment, net $1,248,000$

Payables $$416,000$

Long$-$term liabilities $832,000$

Net assets$$without donor restrictions $1,664,000$

Net assets$$with donor restrictions $1,560,000$

$$4,472,000$ $$4,472,000$

The organization reported a cash investment return of $5\%$ during the subsequent year, and the investments are allocated as follows:

Investment$$Without Donor Restrictions $=20\%$

Investment$$With Donor Restrictions $=80\%$

In addition to the recognition of investment returns, the organization reported the following revenues and expenses, all on account:

Support$$contributions $($without donor restrictions$)$ $$2,912,000$

Support$$contributions $($with donor restrictions$)338,000$

Expenses$$program $2,704,000$

Expenses$$support $384,800$

Of the total expenses, $$208,000$ relate to uses that are paid from net assets with donor restrictions in accordance with the stipulations of the donors and are, therefore, released from restriction.

During the year, the organization collected $$3,120,000$ of receivables and paid $$3,016,000$ of accounts payable. In addition, it purchased long$-$term assets for cash in the amount of $$135,200$ and recognized depreciation expense of $$93,600($of which $90\%$ relates to program expenses and $10\%$ relates to support expenses$).$ The organization also purchased additional investments with excess cash in the amount of $$124,800$ and repaid $$119,600$ principal amount of long$-$term debt.

a$.$ Prepare journal entries for the organization$$s financial activities during the year.

General Journal

Description Debit Credit

Cash Answer $1$

Answer $2$

Answer $3$

Investments

Answer $4$

Answer $5$

Support$$contributions $($without donor restrictions$)$ Answer $6$

Answer $7$

Support$$contributions $($with donor restrictions$)$ Answer $8$

Answer $9$

Revenues$$investment $($without donor restrictions$)$ Answer $10$

Answer $11$

Answer $12$

Answer $13$

Answer $14$

To record recognition of support and revenues.

Answer $15$

Answer $16$

Answer $17$

Answer $18$

Answer $19$

Answer $20$

To release net assets from restrictions.

Answer $21$

Answer $22$

Answer $23$

Expenses$-$support Answer $24$

Answer $25$

Answer $26$

Answer $27$

Answer $28$

To record recognition of expenses.

Answer $29$

Answer $30$

Answer $31$

Answer $32$

Answer $33$

Answer $34$

To record collection of receivables.

Answer $35$

Answer $36$

Answer $37$

Answer $38$

Answer $39$

Answer $40$

To record payment on account payables.

Answer $41$

Answer $42$

Answer $43$

Expenses$-$program Answer $44$

Answer $45$

Expenses$-$support Answer $46$

Answer $47$

Answer $48$

Answer $49$

Answer $50$

To record purchase of long$-$term assets and recognize depreciation.

Answer $51$

Answer $52$

Answer $53$

Answer $54$

Answer $55$

Answer $56$

To record purchase of investments.

Answer $57$

Answer $58$

Answer $59$

Answer $60$

Answer $61$

Answer $62$

To record payment on debt.

b$.$ Prepare the year$-$end statement of activities and statement of financial position.

Note: Use a negative sign with your answer to indicate a decrease in net assets or release of net assets from restriction.

Statement of Activities

Without

Donor Restrictions With

Donor Restrictions Total

Support$$contributions Answer $63$

Answer $64$

Answer $65$

Revenues$$investment Answer $66$

Answer $67$

Answer $68$

Net assets released from restrictions Answer $69$

Answer $70$

Answer $71$

Total support and revenue Answer $72$

Answer $73$

Answer $74$

Expenses$$program Answer $75$

Answer $76$

Answer $77$

Expenses$$support Answer $78$

Answer $79$

Answer $80$

Total expenses Answer $81$

Answer $82$

Answer $83$

Change in net assets Answer $84$

Answer $85$

Answer $86$

Net assets beginning of year Answer $87$

Answer $88$

Answer $89$

Net assets end of year Answer $90$

Answer $91$

Answer $92$

Statement of Financial Position

Cash Answer $93$

Investments Answer $94$

Contributions receivable Answer $95$

Total current assets Answer $96$

Property plant and equipment net Answer $97$

Total assets Answer $98$

Payables Answer $99$

Total current liabilities Answer $100$

Long$-$term Liabilities Answer $101$

Total liabilities Answer $102$

Net assets$$without donor restrictions Answer $103$

Net assets$$with donor restrictions Answer $104$

Total net assets Answer $105$

Total liabilities and net assets Answer $106$