Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

that is the full question. need help with A, C, and D. For a number of years, a private not-for-profit entity has been preparing financial

image text in transcribed
that is the full question. need help with A, C, and D. image text in transcribed
image text in transcribed
For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1 financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total expenses for Year 2 were $500,000 and reported under net assets without donor restrictions. Each part that follows should be viewed as an independent situation Assume that, at the beginning of Year 1, the entity received $50,000 in cash as a donation with the stipulation that the money be used to buy a bus or be returned to the donor. At that time, the entity increased cash and increased contributed revenue under net assets with donor restrictions. On the first day of Year 2, the $50,000 was spent on the bus. The entity reclassified $50.000 from net assets with donor restrictions to net assets without donor restrictions. At the end of Year 2. the entity recorded $5,000 as depreciation expense, a figure that was shown as a reduction under net assets without donor restrictions. Required: a. What was the appropriate amount of net assets with donor restrictions to be reported at the end of Year 1? Net assets with donor restrictions to be reported at the end of Year 1 b. What was the appropriate amount of net assets without donor restrictions to be reported at the end of Year 2? Net assets without donor restrictions to be reported at the end of Year 2 c. What was the appropriate amount of expenses to be reported under net assets without donor restrictions for the year ending December 31, Year 2? Expenses to be reported d. What was the appropriate amount of net assets with donor restrictions to be reported at the end of Year 2? Net assets with donor restrictions to be reported at the end of Year 2 The following information applies to the questions displayed below.) For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total expenses for Year 2 were $500,000 and reported under net assets without donor restrictions. Each part that follows should be viewed as an independent situation. Assume that, at the beginning of Year 1, the entity received $50,000 in cash as a donation with the stipulation that the money be used to buy a bus or be returned to the donor. At that time, the entity increased cash and increased contributed revenue under net assets with donor restrictions. On the first day of Year 2, the $50,000 was spent on the bus. The entity reclassified $50,000 from net assets with donor restrictions to net assets without donor restrictions. At the end of Year 2, the entity recorded $5,000 as depreciation expense, a figure that was shown as a reduction under net assets without donor restrictions. Required: a. What was the appropriate amount of net assets with donor restrictions to be reported at the end of Year 1? Niet met with donde restrictions to be reported at the end of Year 1 b. What was the appropriate amount of net assets without donor restrictions to be reported at the end of Year 2? Nets without donor restrictions to be reported at the end of Yoar 2 $ 400,000 c. What was the appropriate amount of expenses to be reported under net assets without donor restrictions for the year ending December 31, Year 2? Experts to be reported d. What was the appropriate amount of net assets with donor restrictions to be reported at the end of Year 2? Net me with donar restriction to be reported at the end of Year 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Transformation In Accounting

Authors: Richard Busulwa, Nina Evans

1st Edition

0367362090, 9780367362096

More Books

Students also viewed these Accounting questions