White Sands Homeowner's Society (the Society) is a Not-for-Profit Organization that maintains a community on the shores of one of the best lakes in Canada. The community includes public walking trails, tennis courts, white sand beaches and a playground open to the public. The community owns and operates a hall that can be rented out to the public or used for the Society's events. There are two full time employees to perform maintenance on the common areas, one full time employee to run the office and two part time employees to run the summer camp that is operated over the summer months and environmental education programs year-round.

Homeowner fees are the main source of consistent revenue for the Society. They also receive donation revenue from time to time. Since the organization provides access to the public and operates educational programming, they generate some revenue from provincial and federal grants. The Society is required to follow GAAP and have chosen ASNPO for guidance. Since the activities of the organization benefit the community at large, they are considered a registered charity.

The organization is now entering fiscal year 2020, the Sage file you have been given to start with, gives you the organization's opening balances as at January 1, 2020. The organization uses the restricted fund method and the sage file has been set up with the appropriate accounts and funds(departments) for you to start this case.

The organization has 3 funds: A general fund, a capital fund and an endowment fund. The organization reports on each fund in the Statement of Financial Position, the Statement of Operations and the Statement of Changes in Fund balances. The funds have been set up as Departments in Sage 50: 2 For simplicity, most modules in Sage are not used by the organization. Instead they use the general journal to record their transactions, ensuring that the appropriate account and department codes are used in all entries. The Capital fund tracks all restricted capital contributions and records the capitalization and amortization of all other capital assets. The Endowment fund tracks all endowment contributions. The General fund is used to track everything else. Ignore payroll tax and sales tax throughout this case. Accrual accounting is used. Each fund has its own bank account, tracked in account 1060 using the department code as appropriate (1000, 2000, 3000).

Excerpts of significant accounting policies adopted by the Society:

Recognize contributed goods that would have otherwise been purchased at their estimated fair value.

Do not recognize the value of contributed services.

Straight line amortization for all depreciable capital assets beginning in the month acquired.

Part 1: Transactions (35 marks) Restore the "Starting File Sage Case 2020.cab" file from back up. You are the office manager and an active member of the society. Record the following transactions in the general journal related to January 2020, in Sage 50

The hall rental rate is $1,500 per day or $200 per hour. In the month of January, the hall was rented out for 15 days by external parties, there were no hourly renters. All but $2,000 in cash was collected in January, the remainder is expected to be collected in February. Record this transaction using January 31st as the transaction date.

3. The term deposit and related interest is unrestricted and is held in the general fund. According to the January statement, $100 was earned and received in the term deposit account, use January 31st as the transaction date.

4. During January, the organization increased their efforts to attract individual donors by setting up donation booths at the local grocery stores once a week. Individuals were able to specify if the donation was for general purposes (Unrestricted), to build a playground (Externally restricted - Capital Fund) or to run the kids camp which doesn't start up until July (Externally restricted - No Specific Fund). Record the donation revenue listed above (for the month of January) using January 31st as the transaction date. Cash was deposited into the appropriate bank account for each item listed.

-Unrestricted $ 2,500

-Restricted for playground $ 1,400

-Restricted for summer camp $ 1,500

5. On January 15th, a local fundraising group contributed $6,000 cash specifically to be used for the purchase of the new playground. Cash was deposited into the appropriate bank account.

6. On January 1st, one of the Society's members donated a new snow blower with an estimated fair value of $2,000 and an estimated useful life of 5 years. The Society needed a new snow blower and would have purchased a similar blower if this had not been donated.

7. Annual membership fees were collected from the 200 homes in the community on January 1st . The fee was $1,000/home in 2019. In 2020, the Society opted for a 2% fee increase. The fees cover January 1, 2020 to December 31, 2020 and are prorated evenly over the 12 months.

8. On January 16th, a single private donor provided the Society with an endowment of $150,000 as he was committed to keeping the community vibrant. The cash was deposited into the appropriate bank account. Any interest earned on the endowment can be used at the Society's discretion. The endowment must be invested in specific long-term investments as outlined in the agreement. You go to the bank on January 18th to transfer the money into the designated investment.

9. The Society has been searching for ways to make the canal that runs through the community clearer, as algae continues to grow in the summer months. January 8th the organization pays $6,000 on account to have a study completed on the effectiveness of an aeration process.

10. The salaries and benefits for general operations staff for the month of January is $10,500, paid from the chequing account. Additionally, volunteers spent 15 hours on the set up, operation and take down of the donation booths at the local grocery stores in January. Minimum wage in Alberta is $15/hour. Record the appropriate entry on January 31st . Restrictions Amount Unrestricted $ 2,500 Restricted for playground $ 1,400 Restricted for summer camp $ 1,500

11. The following operating expenses were incurred in January (record on January 31st) but have not yet been paid for:

Janitorial fees for hall rental - $5,000

Office expenses - $1,110

Advertising - $1,000

Utilities - $1,000

12. Record the amortization expense for all depreciable capital assets for the month of January 2020.

Hall $850,000 - Straight line 30 years, no residual value

Furnishings $50,000 - Straight line 10 years, no residual value

Other equipment recorded prior to Fiscal 2020 was $25,000 - Straight line 5 years, no residual value

Other equipment recorded in January 2020 was $2,000 - Straight line 5 years, no residual value

13. January 31st the society received a letter from the provincial government indicating that the Society was awarded a $55,000 grant which will be received in February. The grant can be used for general operations and the Society is certain it will be received.

14. A federal grant for $5,000 was received January 20th. It was restricted to help the society pay for summer camp activities. The Society plans to spend the majority of this cash in May as they ramp up for the camp. However, there was a good deal on educational materials that could be used for the camp, so later in the day on January 20th the Society spent $1,000 of these restricted funds, paid in cash.