From the following list of items select those items requiring recognition on the activity statement of a
Question:
From the following list of items select those items requiring recognition on the activity statement of a private not-for-profit entity (other than a hospital). Prepare an appropriate activity statement on the next page using the items you select. Make sure to use the corresponding numbers on the activity statement in column 1. There is no need to type the descriptions. Journal entries are not required.
1. | $ 200,000 | Gift of cash for classroom building construction. | |
2. | $ 50,000 | Pledge of contribution for research. | |
3. | $ 750,000 | Gift of marketable securities for endowment. Income to be used for scholarships. | |
4. | $1,000,000 | Program Fees earned. | |
5. | $ 20,000 | Endowment dividends restricted for scholarships are received. | |
6. | $ 75,000 | Unrealized gains on endowment investments to be retained in the fund. | |
7. | $ 95,000 | Depreciation. | |
8. | $ 800,000 | Operating expenses (all paid in cash). | |
9. | $ 50,000 | Awards of previous restricted gifts for scholarships -- not included in the above operating expenses. | |
10. | $ 20,000 | Loss on disposal of equipment. | |
11. | $ 10,000 | Pledge of contribution if the democrats win the next presidential election. | |
12. | $ 40,000 | Donated services of program administrator.(Would have hired position) | |
13. | $ 125,000 | Receipt of construction invoices for land grading and the pouring of the foundation on the classroom building. (See #1 above) | |
14. | $ 500,000 | The board of trustees designates unrestricted resources for completion of the classroom building. | |
15. | $ 5,000 | Collection of a prior year pledge receivable restricted for use in the current year (19x1). | |
16. | $1,700,000 | Unrestricted net assets at 1/1/x1. | |
17. | $ 175,000 | Temporarily restricted net assets at 1/1/x1. | |
18. | $2,000,000 | Permanently restricted net assets at 1/1/x1. |
STATEMENT OF ACTIVITIES | |||
For the Year Ended December 31, 20x1 | |||
Numbered items are required in this column | Unrestricted | Temporarily | Permanently Restricted |
Restricted | |||
Revenues, Contributions and Gains: (Description) | |||
Reclassifications: (Description) | |||
Expenses and Losses: (Description) | |||
Increase(decrease) in Net Assets | |||
Net Assets at beginning of Year | $1,700,000 | $175,000 | $2,000,000 |
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren