******Second Submission***** First answer was to a TOTALLY different problem. I need help......
Problem 18-46 (Algo) (LO 18-6) Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2020. In order to have a bigger Impact from their work. They are currently discussing ways by which this combination can be created. The following are statements of financial position for both charities at that date. HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash $1,650, eee Contributions receivable (net) 80.000 Investments 325,eee Buildings & equipment (net) 725.800 Total assets $2,780,000 Liabilities Accounts payable and accrued liabilities $135,eee Notes payable 1,125, eee Total liabilities $1,260,800 Net Assets Net assets without donor restrictions $1,150,000 Net assets with donor restrictions 370.000 Total net assets $1,520, eee Total liabilities and net assets $2,780.eee $550,000 220,eee 195, eee 615.ee $1,500,000 SWIM FOR SAFETY Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued 11abilities Notes payable Total liabilities Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and net assets $120,eee 645.890 $765, eee $445,eee 378.800 $815. eee $1,588.cee The buildings and equipment reported by Help & Save have a fair value of $930,000. The buildings and equipment reported by Swim For Safety have a fair value of $750,000. Required: a. Assume Help & Save pays $1.05 million in cash from its net assets without donor restrictions to gain complete control over Swim For Safety. If it is not assumed that Swim For Safety will be predominantly supported by contributions and Investment Income in the future, what balances will appear on the statement of financial position Immediately after control is gained? (Enter your answers in dollars not in millions of dollars.) S 600,000 380.000 520 000 1,340.000 $ 2.840.000 Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Goodwill Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and net assets s 0 is s 0 0 b. Assume Help & Save pays $1.014,000 in cash from its net assets without donor restrictions to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the statement of financial position immediately after control is gained? Answer is not complete s 0 HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and net assets $ 0 $ 5 0 0 C. Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help-Swim-Save. A new governing body wil be formed to manage and operate this new organization. What balances will appear on the statement of financial position immediately after control is gained? Answer is not complete. HELP-SWIM-SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets S Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities S Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets $ Total liabilities and net assets IS 0 0 0
