Martha Engel started up a new nonprofit organization name Concern for Animal Shelter and Habitats (CASH). The
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Question:
Martha Engel started up a new nonprofit organization name Concern for Animal Shelter and Habitats (CASH). The organization places homeless animals in permanent homes. Transactions during the first month of operations were as follows:
- CASH borrowed $50,000 from a local bank. No interest is due on the loan during the first month, and the principal does not have to be paid back for 2 years.
- CASH signed a contract with a local carpenter to build a fence to enclose the backyard. The carpenter charges $250 per hour and expects the fence to take 10 hours to complete. He expects to begin work next month.
- CASH bought 50 bags of dog food and 25 bags of cat food. Dog food costs $20 per bag, while cat food costs $30 per bag. The pet food was bought on credit (i.e., CASH has not yet paid for the supplies).
- CASH bought a sign to hang in front of its building. The sign cost $5,000 and CASH paid for it when it was received.
- CASH purchased and received an office computer, server, printer, and copier. The total cost of the equipment was $10,000, half of which was paid, and the other half was still owed.
- Show the impact of these transactions on the fundamental equation of accounting. Use the template provided to document your answers.
provide formulas
TEMPLATE | |||||||||
Assets | = | Liabilities and Net Assets | |||||||
Liabilities | Net Assets | ||||||||
Without | With | ||||||||
Office | Accounts | Loan | Donor | Donor | |||||
Cash | Supplies | Equipment | Office Sign | Payable | Payable | Restrictions | Restrictions | ||
Beginning Balance | |||||||||
Transaction # 1 | |||||||||
Transaction # 2 | |||||||||
Transaction # 3 | |||||||||
Transaction # 4 | |||||||||
Transaction # 5 | |||||||||
Ending Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
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