Question
The Puck School (TPS) is a private, not-for-profit pre-school that operates all year long. It concluded FY 2019 with the following account balances: TPS Account
The Puck School (TPS) is a private, not-for-profit pre-school that operates all year long. It concluded FY 2019 with the following account balances: TPS Account Balances TPS experienced the following financial events during FY 2020, which ended December 31, 2020 TPS sent each of its students a $2,500 tuition bill on the last day of each quarter. Quarterly tuition was $2,375 in FY 2019. There were 100 students enrolled in TPS in FY 2019 and in FY 2020, and TPS receives payments 1 month after tuition is billed. TPS held its annual fundraiser December 1. It received $50,000 in pledges, of which $40,000 was collected by the end of the year. TPS expects 90% of the $10,000 in outstanding pledges from the fundraiser will be collected in FY 2021; the remaining 10% has been deemed uncollectible. On the first day of FY 2020, 10 parents paid $50 each to join TPS's parent-teacher association (PTA). On the first day of FY 2019, 20 parents paid $50 each to join the PTA. All PTA memberships last 2 years, and membership benefits are spread evenly between the two years. TPS recorded annual depreciation for its building and equipment, which had (as of January 1, 2020) a net book value of $300,000, no salvage value, and a remaining useful life of 5 years. TPS received $500 in donated school supplies. In addition, TPS purchased $500 in supplies on account in December. TPS used a total of $1,000 in supplies during FY 2020. TPS earned a 10% return on its investments. No investments were bought or sold. TPS's full-time teachers and administrative staff earned $50,000 monthly, plus benefits valued at 30% of their salaries. Both salary and benefit levels were unchanged from FY 2020. Full-time employees are paid with a one-month lag. [Use "Full-time salaries and benefits" as the line item in the financial statements, as appropriate.] Each of TPS's 10 part-time teaching assistants earned $13 per hour, and each worked 500 hours, spread evenly throughout the year. In FY 2019, part-time teaching assistants earned the same hourly wage and worked the same number of hours, but there were only 8 teaching assistants instead of 10. Part-time employees are paid every two weeks, with a two-week lag. [Use "Part-time wages" as the line item in the financial statements, as appropriate.] Your Task: Record these events in a transactions worksheet and use that sheet to create the Balance Sheet, Activity Statement, and the Cash Flow Statement for TPS for FY 2020.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started