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 $200,000 bank loan with an annual interest rate of 4.5 percent. SRS's prior outstanding loan ($50,000 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 $0 when it is disposed of). SRS also recorded $5,000 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 entitles the member to benefits for 2 years. SRS sold and received payment for 50 memberships. 4. SRS sold $375,000 in tickets. All tickets were paid for in cash 5. SRS receiveda $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 S25,000 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. 125% Search in Sheet AHome Layout SmartArt Tablas Charts Formulas Data Beview Numr fomat Timen New Romane 11 A A- Wrap Tast Ourrency Nomal Bad Gd Paste Clear B I U Cend Merge- Neurl Check Cel Formating Insert Deleter Formet F43 Di H K 1 Exercise 7 2. 3 The Science Road Show, Transactions Worksheet, FY 2021 4 Assets Liabilities Net Assets Grants Receivable, Prepaid Wages Accounts Deferred PP&E, Net Payable Payable Revenue Payable Notes 5 Cash Receivable Net Inventory Rent Without Donor Restrictions 9 Record new loan Record interest on new loan Record interest on old loan 200,000 200,000 10 -3,000 -3,000 11 9,000 9,000 12 13 Purchase of assets Rocord 1/2 year deprecation on new assets Record full year depreciation on old assets 14 15 16 3 17 Record membership revenue for current year 18 Record membership revenue for future year 19 4 20 Record ticket revenae 21 Record receipt of foundation check from prior year grant Record revenue from new grant 22 23 24 6 Record revene from new donor 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 25 26 27 28 29 7 Record program booklets paid for in the current year 30 Record program booklets used in the current year 31 Balance Sheet Activity Statement Cash Flow Stanement Transactions Sum-D Normal Vew Ready MacBook Air Hioma adias Charis SmariAri Formuias Data Pleviaw Font Aignment Nmben Formal Cela Fil Times New Roman 11 abc Wrap Teat General Noml Bad Good Claar B Conditional Formating aste Merge Neutral Chesk Cell Insart Deleta Forma The (fx A B C D E F G K L M. Exercise 7 The Science Road Show, Transactiens Worksheet, FY 2021 Assets Liabilities Net Assets Grants Receivable, Prepaid Accounts Deferred Wages PP&E, Net Payable Payable Notes Cash Receivable Net Inventory Rent Revenue Payable Without Donor Restrictions Write off old donor pledges deemed uncollectible 7 Record program booklets paid for in the current year Record program booklets used in the current 1 year Record program booklets bought for the next fiscal year 2 3 8 Record total wages due to employees for the year Record wages from prior year paid during the current year Record current year wages not yyet paid (will be paid in the next fiscal year-1 months worth) 4 6 Recond reet expense from prior year that was 8 Record current year rent payments (hint for 11 paid in advance months) Record rent paid in current year that relates to the 40 next fiacal year (hint: 1 month aat new rate) 1 10 #2 Recond the payment of the old note payable Question: Do you need so recond anything for the payment that will be made on the new loan on 3 4 5 46 September 1, 2021 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 $200,000 bank loan with an annual interest rate of 4.5 percent. SRS's prior outstanding loan ($50,000 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 $0 when it is disposed of). SRS also recorded $5,000 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 entitles the member to benefits for 2 years. SRS sold and received payment for 50 memberships. 4. SRS sold $375,000 in tickets. All tickets were paid for in cash 5. SRS receiveda $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 S25,000 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. 125% Search in Sheet AHome Layout SmartArt Tablas Charts Formulas Data Beview Numr fomat Timen New Romane 11 A A- Wrap Tast Ourrency Nomal Bad Gd Paste Clear B I U Cend Merge- Neurl Check Cel Formating Insert Deleter Formet F43 Di H K 1 Exercise 7 2. 3 The Science Road Show, Transactions Worksheet, FY 2021 4 Assets Liabilities Net Assets Grants Receivable, Prepaid Wages Accounts Deferred PP&E, Net Payable Payable Revenue Payable Notes 5 Cash Receivable Net Inventory Rent Without Donor Restrictions 9 Record new loan Record interest on new loan Record interest on old loan 200,000 200,000 10 -3,000 -3,000 11 9,000 9,000 12 13 Purchase of assets Rocord 1/2 year deprecation on new assets Record full year depreciation on old assets 14 15 16 3 17 Record membership revenue for current year 18 Record membership revenue for future year 19 4 20 Record ticket revenae 21 Record receipt of foundation check from prior year grant Record revenue from new grant 22 23 24 6 Record revene from new donor 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 25 26 27 28 29 7 Record program booklets paid for in the current year 30 Record program booklets used in the current year 31 Balance Sheet Activity Statement Cash Flow Stanement Transactions Sum-D Normal Vew Ready MacBook Air Hioma adias Charis SmariAri Formuias Data Pleviaw Font Aignment Nmben Formal Cela Fil Times New Roman 11 abc Wrap Teat General Noml Bad Good Claar B Conditional Formating aste Merge Neutral Chesk Cell Insart Deleta Forma The (fx A B C D E F G K L M. Exercise 7 The Science Road Show, Transactiens Worksheet, FY 2021 Assets Liabilities Net Assets Grants Receivable, Prepaid Accounts Deferred Wages PP&E, Net Payable Payable Notes Cash Receivable Net Inventory Rent Revenue Payable Without Donor Restrictions Write off old donor pledges deemed uncollectible 7 Record program booklets paid for in the current year Record program booklets used in the current 1 year Record program booklets bought for the next fiscal year 2 3 8 Record total wages due to employees for the year Record wages from prior year paid during the current year Record current year wages not yyet paid (will be paid in the next fiscal year-1 months worth) 4 6 Recond reet expense from prior year that was 8 Record current year rent payments (hint for 11 paid in advance months) Record rent paid in current year that relates to the 40 next fiacal year (hint: 1 month aat new rate) 1 10 #2 Recond the payment of the old note payable Question: Do you need so recond anything for the payment that will be made on the new loan on 3 4 5 46 September 1, 2021
