The Science Road Show (SRS) is a not-for-profit organization that puts on traveling science demonstrations throughout the state. SRS operates on a September 1* to August 31" fiscal year. The organization began the year with the following account balances: Cash Grants Receivable Inventory Net Assets without Donor Restrictions Notes Payable Pledges Receivable, net Property, Plant & Equipment, Net Prepaid Rent Wages Payable $40,000 100,000 4,000 169,000 50,000 75,000 75,000 10,000 20,000 These beginning balances have already been recorded on the template provided to you for completion of this exercise. SRS recorded the following financial events during the 2021 fiscal year (September 1, 2020 through August 31, 2021): 1. On September 1, 2020, SRS took out a S200,000 bank loan with an annual interest rate of 4.5 percent. SRS's prior outstanding loan (550,000 as reflected above) has an annual interest rate of 6.0 percent. Annual interest payments on both loans are due August 31, 2021. 2. Halfway through the fiscal year, SRS used the new loan proceeds to purchase a new asset that is expected to last 10 years and have no salvage value (it will be worth So when it is disposed of). SRS also recorded S5,000 in depreciation on its existing equipment, per its policy of recording depreciation annually. 3. On the first day of the fiscal year, SRS held a membership drive. Each 2-year membership is priced at $1,000 and entities the member to benefits for 2 years. SRS sold and received payment for 50 memberships. 4. SRS sold 5375,000 in tickets. All tickets were paid for in cash. 5. SRS received a $100,000 check for a foundation grant that was awarded in the previous fiscal year. During the year, SRS was awarded another $50,000 foundation grant. Payment on the second grant is expected in October 2021. 6. During the fiscal year, SRS received $60,000 in new donor pledges and collected 75% of those pledges. SRS also collected 60 percent of the outstanding pledges from the previous fiscal year. Based on past experience, SRS expects that none of the remaining outstanding pledges from the prior fiscal year will be collected. 7. Throughout the year, SRS ordered, paid for, and used $15,000 of program booklets. In August, SRS ordered (on account) $5,000 of programs for the following fiscal year (on account means they did not pay for these programs and still owes the supplier). 8. SRS's employees earned $25,000 per month. Employees are paid with a 1-month lag. SRS also fully paid its prior-year obligations to employees. 9. Payments on SRS's operating leased vehicles and equipment are due 1 month in advance. Currently lease payments totaled $10,000 per month. Next year, they will rise to $12,000 per month 10. On August 31, in addition to making annual interest payments SRS repaid the loan outstanding prior to FY 2021 in full (the $50,000 loan in the beginning balance). A $25,000 principal repayment on the loan taken out at the beginning of the fiscal year is due on September 1, 2021. To complete this exercise: 1. Record the above transactions on the "Transactions" tab in the template provided. Remember that every entry must affect at least two accounts to remain in balance! Transaction 1 is done for you to remind you how this works. 2. Use the ending balance from the "Transactions" tab to complete the 2021 column on the balance sheet located in the "Balance Sheet" tab. 3. Use the activity from the "Transactions" tab to complete the Statement of Activities in the "Activity Statement" tab. Note that when you record transactions on the "Activity Statement" you do not need to enter expense amounts as negative. Enter everything as a positive number since expenses are deemed to be negative in that statement. 4. Use the information from the Balance Sheet and Activity Statement tabs to complete the Statement of Cash Flows on the Cash Flow Statement" tab. The Science Road Show, Transactions Worksherd FY 2021 Receivable, Grints Receivable 100,000 Cao 40,000 Prepaid Rent 10,000 Wigs Accou Payable Payable 20,000 PPE, Net 75.000 Deferred Revenue Bening Balances Transaction Number Notes Payable 50,000 4,000 without Donor Restrictions 169.000 Recondsew loan Roceed interest on new loan Record interests old low 200,000 -3,000 200,000 Purchase of assets Record 1/2 year deprecation on new assets Record fall your depreciation on old assets Record membership revenue for current year Record membership revenue for future your Record ticket revenue Record receipt of foundation check from prior year grant Record revenue from new grant Record revenue from new dance pledges Record cash received from new donor pledges Record cash received from last years balance of donor pledges Write off old donor pledges deemed uncollectible Record program booklets paid for in the Current year Record program booklets used in the current Record program booklets bought for the next fecal year Record total wages due to employees for the Records from yor year paid during the Record current year was not yet paid will be Transactions tions Balance Sheet Balance Sheet Normal View Activity Statement Cash Flow Statement 1 Exercise 7 The Science Road Show, Transactions Worksheet, FY 2021 Grants Receivable Receivable N et Prepaid Rent Wages PP&E, NetPayable abilities Accounts Deferred Payable Revenue Notes Payable Inventory Without Donor Restrictions Record total wapes due to employees for the Record wages from prior your paid during the Record current year was not yet paid will be paid in the s cale moth worth) Reccedent expense from prior year that was Recordement year pymes Chint for 11 mon) Recordent padis year tha t the yout 1 month we Record the payment of the old sote payable Question: Do you need to record anything for the pay that will be made on the AB 2020 The Science Road Show Statements of Financial Position As of August 31, 2021 and August 31, 2020 Assets 2021 Current Assets Cash Grants Receivable Pledges Receivable, Net Inventory Prepaid Rent Total Current Assets So Long-Term Assets PP&E, Net Total Assets $40,000 100,000 10,000 4,000 10,000 $164,000 $75,000 $239,000 $20,000 Liabilities Current Liabilities Wages Payable Accounts Payable Deferred Revenue Notes Payable--Current Portion Total Current Liabilities Long-Term Liabilities Notes Payable-Long-Term Portion Total Liabilities Net Assets Total Liabilities and Net Assets 50,000 S70,000 SO SO SO $70,000 $169,000 S239,000 SO The Science Road Show Statement of Activities For the Year Ending August 31, 2021 Revenues and Support Ticket Sales Memberships Grants Donations Total Revenue and Support SO Expenses Wages Rent Supplies Interest Bad Debts Depreciation Total Expenses Change in Net Assets Net Assets, Beginning Net Assets, Ending $169,000 S169,000 The Science Road Show Statement of Cash Flows For the Year Ending December 31, 2021 Cash From Operating Activities Change in Net Assets Adjustment for Non-Cash Expense: Depreciation (Increases)/Decreases in Non-Cash Current Assets: Grants Receivable Pledges Receivable, Net Inventory Prepaid Rent Increases/(Decreases) in Current Liabilities: Wages Payable Accounts Payable Deferred Revenue Net Cash From Operating Activities Cash From Investing Activities Purchase of Equipment Net Cash (Used For) Investing Activities Cash From Financing Activities Loan Proceeds Principal Repayment Net Cash From/(Used For) Financing Activities Net Increase/(Decrease) in Cash Cash, Beginning of Year Cash, End of Year 40,000 S40,000 The Science Road Show (SRS) is a not-for-profit organization that puts on traveling science demonstrations throughout the state. SRS operates on a September 1* to August 31" fiscal year. The organization began the year with the following account balances: Cash Grants Receivable Inventory Net Assets without Donor Restrictions Notes Payable Pledges Receivable, net Property, Plant & Equipment, Net Prepaid Rent Wages Payable $40,000 100,000 4,000 169,000 50,000 75,000 75,000 10,000 20,000 These beginning balances have already been recorded on the template provided to you for completion of this exercise. SRS recorded the following financial events during the 2021 fiscal year (September 1, 2020 through August 31, 2021): 1. On September 1, 2020, SRS took out a S200,000 bank loan with an annual interest rate of 4.5 percent. SRS's prior outstanding loan (550,000 as reflected above) has an annual interest rate of 6.0 percent. Annual interest payments on both loans are due August 31, 2021. 2. Halfway through the fiscal year, SRS used the new loan proceeds to purchase a new asset that is expected to last 10 years and have no salvage value (it will be worth So when it is disposed of). SRS also recorded S5,000 in depreciation on its existing equipment, per its policy of recording depreciation annually. 3. On the first day of the fiscal year, SRS held a membership drive. Each 2-year membership is priced at $1,000 and entities the member to benefits for 2 years. SRS sold and received payment for 50 memberships. 4. SRS sold 5375,000 in tickets. All tickets were paid for in cash. 5. SRS received a $100,000 check for a foundation grant that was awarded in the previous fiscal year. During the year, SRS was awarded another $50,000 foundation grant. Payment on the second grant is expected in October 2021. 6. During the fiscal year, SRS received $60,000 in new donor pledges and collected 75% of those pledges. SRS also collected 60 percent of the outstanding pledges from the previous fiscal year. Based on past experience, SRS expects that none of the remaining outstanding pledges from the prior fiscal year will be collected. 7. Throughout the year, SRS ordered, paid for, and used $15,000 of program booklets. In August, SRS ordered (on account) $5,000 of programs for the following fiscal year (on account means they did not pay for these programs and still owes the supplier). 8. SRS's employees earned $25,000 per month. Employees are paid with a 1-month lag. SRS also fully paid its prior-year obligations to employees. 9. Payments on SRS's operating leased vehicles and equipment are due 1 month in advance. Currently lease payments totaled $10,000 per month. Next year, they will rise to $12,000 per month 10. On August 31, in addition to making annual interest payments SRS repaid the loan outstanding prior to FY 2021 in full (the $50,000 loan in the beginning balance). A $25,000 principal repayment on the loan taken out at the beginning of the fiscal year is due on September 1, 2021. To complete this exercise: 1. Record the above transactions on the "Transactions" tab in the template provided. Remember that every entry must affect at least two accounts to remain in balance! Transaction 1 is done for you to remind you how this works. 2. Use the ending balance from the "Transactions" tab to complete the 2021 column on the balance sheet located in the "Balance Sheet" tab. 3. Use the activity from the "Transactions" tab to complete the Statement of Activities in the "Activity Statement" tab. Note that when you record transactions on the "Activity Statement" you do not need to enter expense amounts as negative. Enter everything as a positive number since expenses are deemed to be negative in that statement. 4. Use the information from the Balance Sheet and Activity Statement tabs to complete the Statement of Cash Flows on the Cash Flow Statement" tab. The Science Road Show, Transactions Worksherd FY 2021 Receivable, Grints Receivable 100,000 Cao 40,000 Prepaid Rent 10,000 Wigs Accou Payable Payable 20,000 PPE, Net 75.000 Deferred Revenue Bening Balances Transaction Number Notes Payable 50,000 4,000 without Donor Restrictions 169.000 Recondsew loan Roceed interest on new loan Record interests old low 200,000 -3,000 200,000 Purchase of assets Record 1/2 year deprecation on new assets Record fall your depreciation on old assets Record membership revenue for current year Record membership revenue for future your Record ticket revenue Record receipt of foundation check from prior year grant Record revenue from new grant Record revenue from new dance pledges Record cash received from new donor pledges Record cash received from last years balance of donor pledges Write off old donor pledges deemed uncollectible Record program booklets paid for in the Current year Record program booklets used in the current Record program booklets bought for the next fecal year Record total wages due to employees for the Records from yor year paid during the Record current year was not yet paid will be Transactions tions Balance Sheet Balance Sheet Normal View Activity Statement Cash Flow Statement 1 Exercise 7 The Science Road Show, Transactions Worksheet, FY 2021 Grants Receivable Receivable N et Prepaid Rent Wages PP&E, NetPayable abilities Accounts Deferred Payable Revenue Notes Payable Inventory Without Donor Restrictions Record total wapes due to employees for the Record wages from prior your paid during the Record current year was not yet paid will be paid in the s cale moth worth) Reccedent expense from prior year that was Recordement year pymes Chint for 11 mon) Recordent padis year tha t the yout 1 month we Record the payment of the old sote payable Question: Do you need to record anything for the pay that will be made on the AB 2020 The Science Road Show Statements of Financial Position As of August 31, 2021 and August 31, 2020 Assets 2021 Current Assets Cash Grants Receivable Pledges Receivable, Net Inventory Prepaid Rent Total Current Assets So Long-Term Assets PP&E, Net Total Assets $40,000 100,000 10,000 4,000 10,000 $164,000 $75,000 $239,000 $20,000 Liabilities Current Liabilities Wages Payable Accounts Payable Deferred Revenue Notes Payable--Current Portion Total Current Liabilities Long-Term Liabilities Notes Payable-Long-Term Portion Total Liabilities Net Assets Total Liabilities and Net Assets 50,000 S70,000 SO SO SO $70,000 $169,000 S239,000 SO The Science Road Show Statement of Activities For the Year Ending August 31, 2021 Revenues and Support Ticket Sales Memberships Grants Donations Total Revenue and Support SO Expenses Wages Rent Supplies Interest Bad Debts Depreciation Total Expenses Change in Net Assets Net Assets, Beginning Net Assets, Ending $169,000 S169,000 The Science Road Show Statement of Cash Flows For the Year Ending December 31, 2021 Cash From Operating Activities Change in Net Assets Adjustment for Non-Cash Expense: Depreciation (Increases)/Decreases in Non-Cash Current Assets: Grants Receivable Pledges Receivable, Net Inventory Prepaid Rent Increases/(Decreases) in Current Liabilities: Wages Payable Accounts Payable Deferred Revenue Net Cash From Operating Activities Cash From Investing Activities Purchase of Equipment Net Cash (Used For) Investing Activities Cash From Financing Activities Loan Proceeds Principal Repayment Net Cash From/(Used For) Financing Activities Net Increase/(Decrease) in Cash Cash, Beginning of Year Cash, End of Year 40,000 S40,000