Question

Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2011.




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The following transactions occurred during the fiscal year ended February 28, 2012.
1. Fees were billed as follows:
Service fees........... $30,000
Book rentals........... 43,000
Book fines........... 78,000
2. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.
3. Contributions in the amounts summarized below were received:
Unrestricted........... $215,000
Restricted............ 108,000
4. Investment income totaled $75,000 for the year.
5. Vouchers for the year were approved as follows:
Circulating library........... $189,000
Research library........... 74,000
Exhibits............. 15,000
Community services......... 12,000
General and administrative..... 166,000
Fund raising ........... 103,000
Total............... $559,000
6. During the year, $500,000 worth of vouchers were paid.
Adjustment Data
7. Accounts Payable and Accrued Expenses at February 28, 2012, should be $217,000. The difference should be allocated to the following expenses:
Research library........... $5,000
General and administrative...... 3,000
8. Additions to the research library in the amount of $68,000 that were approved in (5) above were made in accordance with the terms of a contribution that had been received earlier and that was restricted for that purpose.
9. The current market value of the investments is $1,035,000 (no investment transactions occurred).
10. Depreciation amounted to $9,000 for the year. It should be allocated as follows:
Circulating library......... $3,500
Research library.......... 2,900
General and administrative.... 2,600
11. Prepaid Expenses should be $60,000. The difference should be allocated to:
Exhibits............ $3,700
General and administrative..... 1,300

Required:
A. Prepare journal entries to record the transactions.
B. Prepare the statement of financial position and the statement of activities for the year ended February 28,2012.


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  • CreatedMarch 16, 2015
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