Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are the CFO of the Concern for the Black History and Culture (CBHC) that began operations on January 1, 2020 with a fiscal year
You are the CFO of the Concern for the Black History and Culture (CBHC) that began operations on January 1, 2020 with a fiscal year ending December 31, 2020. CBHC uses accrual accounting. During the fiscal year, the following events occurred:
- A foundation gave CBHC $100,000 in cash for general operating purposes.
- A building was leased for $1,000 per month for 12 months. Monthly rent payments were all made at the beginning of each month. You may show all of the lease payments for the fiscal year in a single transaction.
- As part of the lease agreement, CBHC gave the building owner a $2,000 security deposit. (Hint: think about whether this is a resource that would be used up or not)
- Staff were hired and earned $60,000 during the year. CBHC paid $40,000 of those salaries during the year.
- $15,000 of supplies was purchased throughout the year. All supplies were paid for.
- CBHC attracted 200 members during the year. The annual membership fee is $100 per person. The membership bills were sent out to members.
- Management estimates that 10% of the members will not be able to pay their bills.
- On December 31, 2020, the year-ending supplies inventory was $5,000.
- $10,000 of the membership bills was collected.
(1) Record these transactions in a worksheet. Then, prepare (2) a year-ending Balance Sheet and (3) Activity Statement for the fiscal year ending December 31, 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