Question: A group of civic minded merchants in Eldora organized the Committee

A group of civic-minded merchants in Eldora organized the Committee of 100 for establishing the Community Sports Club, a not-for-profit sports organization for local youth. Each of the committee’s 100 members contributed $1,000 toward the club’s capital and, in turn, received a participation certificate. In addition, each participant agreed to pay dues of $200 a year for the club’s operations. All dues have been collected in full by the end of each fiscal year ending March 31.
Members who have discontinued their participation have been replaced by an equal number of new members through transfer of the participation certificates from the former members to the new ones. Following is the club’s trial balance for April 1, 20X2:

Transactions for the year ended March 31, 20X3, follow:

Adjustment Data
1. Investments are valued at market, which totaled $65,000 on March 31, 20X3. There were no investment transactions during the year.
2. Depreciation for year:
Building .......... $4,000
Furniture & equipment ..... 8,000

3. Allocation of depreciation:
House expenses ...... $9,000
Snack bar & soda fountain ... 2,000
General and administrative ... 1,000
4. Actual physical inventory on March 31, 20X3, was $1,000 and pertains to the snack bar and soda fountain.

a. Record the transactions and adjustments in journal entry form for the year ended March 31, 20X3. Omit explanations.
b. Prepare the appropriate all-inclusive statement of activities for the year ended March 31,20X3.

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  • CreatedMay 23, 2014
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