Do-Gooder Workshop (DGW) is a not-for-profit organization that provides manufactures and provides home furnishings in economically...

   

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Do-Gooder Workshop (DGW) is a not-for-profit organization that provides manufactures and provides home furnishings in economically depressed areas. In addition, the workshop has a contract to furnish state government agencies located nears its headquarters. DGW prepares its financial statements on the accrual basis of accounting and follows the GAAP for non-for-profit organizations. It ended FY 2019 with the following account balances (in no particular order): Accounts Payable Contract Receivable, net Cash Pledges Receivable, net Inventory Notes Payable PP&E, net Prepaid Expenses Net Assets Without Donor Restrictions Wages Payable . 15,750 30,000 125,250 127,000 40,500 150,000 65,000 3,000 185,000 40,000 The following financial events occurred during FY 2020, which ended June 30, 2020: 1. On the first day of FY 2020, DW took out a $100,000 loan with an annual interest rate of 3.5%. o Interest must be paid in full on the last day of the fiscal year. In addition, interest on outstanding principal from a loan taken out in a prior fiscal year, which has an annual interest rate of 5%, is also due on June 30. 2. DGW immediately used the proceeds from the new loan to purchase equipment to speed up the production of home furnishings. o The equipment has no salvage value and an estimated useful life of 10 years. Capital assets purchased in prior fiscal years depreciated by $12,000 in FY 2020. DGW calculates depreciation using the straight-line method. 4. Sales revenue totaled $450,000 in FY 2020 and was received in cash. o [Use "Sales" as the line item in the financial statements, as appropriate.] 5. DGW earned $160,000 in state contract revenue in FY 2020, up from the $120,000 the organization earned in FY 2019. o The contract revenue is paid with a one-quarter lag. o [Use "Contract Revenue" as the line item in the financial statements, as appropriate.] 6. DGW's employees earned $235,000 in total, spread evenly throughout the year. o Employees are paid timely. 7. DGW rents office space with payment made one month in advance. o In FY 2020, DGW's rent was $3,000 per month, and rent will increase to $3,250 per month in FY 2021. o DGW also used $350 per month during the year in utilities, which were paid timely. [Record rent and utilities separately in the financial statements, as appropriate.] 8. A licensed, professional contracting company installed DGW's new equipment during the fiscal year free of charge. o The service is valued at $5,500 and DGW would have otherwise had to pay for comparable professional services. 9. In FY 2020, DGW ordered $4,500 worth of supplies each month. • Supplies are paid timel, and the organization ended FY 2020 with an ending inventory balance of $9,000. In addition, DGW fully paid off prior fiscal years' obligations to its vendors. Your Task: Record these events in a transactions worksheet and use that sheet to create the Balance Sheet, Activity Statement, and the Cash Flow Statement for DGW for FY 2020. • Round your answers to the nearest WHOLE number and DO NOT include any decimal places-e.g., 28.75 would be 29 . Do not include symbols ($) or commas in your answers • Indicate negative numbers with a hyphen or dash - e.g. -50.85 • Make sure you still write a 0 (zero) in the blank if you believe the value should be 0. . Empty blanks will be marked incorrect Do-Gooder Workshop (DGW) is a not-for-profit organization that provides manufactures and provides home furnishings in economically depressed areas. In addition, the workshop has a contract to furnish state government agencies located nears its headquarters. DGW prepares its financial statements on the accrual basis of accounting and follows the GAAP for non-for-profit organizations. It ended FY 2019 with the following account balances (in no particular order): Accounts Payable Contract Receivable, net Cash Pledges Receivable, net Inventory Notes Payable PP&E, net Prepaid Expenses Net Assets Without Donor Restrictions Wages Payable . 15,750 30,000 125,250 127,000 40,500 150,000 65,000 3,000 185,000 40,000 The following financial events occurred during FY 2020, which ended June 30, 2020: 1. On the first day of FY 2020, DW took out a $100,000 loan with an annual interest rate of 3.5%. o Interest must be paid in full on the last day of the fiscal year. In addition, interest on outstanding principal from a loan taken out in a prior fiscal year, which has an annual interest rate of 5%, is also due on June 30. 2. DGW immediately used the proceeds from the new loan to purchase equipment to speed up the production of home furnishings. o The equipment has no salvage value and an estimated useful life of 10 years. Capital assets purchased in prior fiscal years depreciated by $12,000 in FY 2020. DGW calculates depreciation using the straight-line method. 4. Sales revenue totaled $450,000 in FY 2020 and was received in cash. o [Use "Sales" as the line item in the financial statements, as appropriate.] 5. DGW earned $160,000 in state contract revenue in FY 2020, up from the $120,000 the organization earned in FY 2019. o The contract revenue is paid with a one-quarter lag. o [Use "Contract Revenue" as the line item in the financial statements, as appropriate.] 6. DGW's employees earned $235,000 in total, spread evenly throughout the year. o Employees are paid timely. 7. DGW rents office space with payment made one month in advance. o In FY 2020, DGW's rent was $3,000 per month, and rent will increase to $3,250 per month in FY 2021. o DGW also used $350 per month during the year in utilities, which were paid timely. [Record rent and utilities separately in the financial statements, as appropriate.] 8. A licensed, professional contracting company installed DGW's new equipment during the fiscal year free of charge. o The service is valued at $5,500 and DGW would have otherwise had to pay for comparable professional services. 9. In FY 2020, DGW ordered $4,500 worth of supplies each month. • Supplies are paid timel, and the organization ended FY 2020 with an ending inventory balance of $9,000. In addition, DGW fully paid off prior fiscal years' obligations to its vendors. Your Task: Record these events in a transactions worksheet and use that sheet to create the Balance Sheet, Activity Statement, and the Cash Flow Statement for DGW for FY 2020. • Round your answers to the nearest WHOLE number and DO NOT include any decimal places-e.g., 28.75 would be 29 . Do not include symbols ($) or commas in your answers • Indicate negative numbers with a hyphen or dash - e.g. -50.85 • Make sure you still write a 0 (zero) in the blank if you believe the value should be 0. . Empty blanks will be marked incorrect

Answer rating: 100% (QA)

Transaction Worksheet for FY 2020 Date Account Debit Credit Description 070120 Cash 100000 Loan proceeds received 070120 Equipment 100000 Purchase of ... View the full answer