Preparation of not-for-profit journal entries and financial statements Music and Math Camp, Inc. is a not-for-profit...

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Preparation of not-for-profit journal entries and financial statements Music and Math Camp, Inc. is a not-for-profit organization dedicated to the development of music skilis in kids through weekend and summer camp experiences. Research shows that leaming to read music and play an instrument helps the brain work with the body leading to stronger memory and math skills. The organization reported the following post-closing trial balance at the end of last year: Beginning Balances: DR CR $ 234,000 Cash.. Investments Contributions receivable. Property, plant and equipment, net. Payables. Long-term liabilities. Net assets-without donor restrictions. Net assets-with donor restrictions . 3,120,000 676,000 1,560,000 $ 520,000 1,040,000 2,080,000 1.950.000 $5.590,000 $5,590,000 The organization reported a cash investment return of 4% during the subsequent year, and the invest- ments are allocated as follows: Investment-Withou Donor Restrictions - 20% Investment-With Donor Restrictions= B0% In addition to the recognition of investment returns, the organization reported the following revenues and expenses, all on account: Support-contributions (without donor restrictions). Support-contributions (with donor restrictions). Expenses-program.. Expenses-support $3.640,000 422,500 3,380,000 481,000 Of the total expenses, $260,000 relate to uses that are paid from net assets with donor restrictions in accordance with the stipulations of the donors and are, therefore, released from restriction. During the year, the organization collected $3,900,000 of receivables and paid $3,770.000 of ac- counts payable. In addition, it purchased long-term assets for cash in the amount of $169,000 and rec- ognized depreciation expense of $117.000 (of which 88% relates to program expenses and 12% relates to support expenses), The organization also purchased additional investments with excess cash in the amount of $156,000 and repaid $149,500 principal amount of long-term debt. a. Prepare joumal entries for the organization's financial activities during the year. b. Prepare the year-end statement of activities and statement of financial position. Preparation of not-for-profit journal entries and financial statements Music and Math Camp, Inc. is a not-for-profit organization dedicated to the development of music skilis in kids through weekend and summer camp experiences. Research shows that leaming to read music and play an instrument helps the brain work with the body leading to stronger memory and math skills. The organization reported the following post-closing trial balance at the end of last year: Beginning Balances: DR CR $ 234,000 Cash.. Investments Contributions receivable. Property, plant and equipment, net. Payables. Long-term liabilities. Net assets-without donor restrictions. Net assets-with donor restrictions . 3,120,000 676,000 1,560,000 $ 520,000 1,040,000 2,080,000 1.950.000 $5.590,000 $5,590,000 The organization reported a cash investment return of 4% during the subsequent year, and the invest- ments are allocated as follows: Investment-Withou Donor Restrictions - 20% Investment-With Donor Restrictions= B0% In addition to the recognition of investment returns, the organization reported the following revenues and expenses, all on account: Support-contributions (without donor restrictions). Support-contributions (with donor restrictions). Expenses-program.. Expenses-support $3.640,000 422,500 3,380,000 481,000 Of the total expenses, $260,000 relate to uses that are paid from net assets with donor restrictions in accordance with the stipulations of the donors and are, therefore, released from restriction. During the year, the organization collected $3,900,000 of receivables and paid $3,770.000 of ac- counts payable. In addition, it purchased long-term assets for cash in the amount of $169,000 and rec- ognized depreciation expense of $117.000 (of which 88% relates to program expenses and 12% relates to support expenses), The organization also purchased additional investments with excess cash in the amount of $156,000 and repaid $149,500 principal amount of long-term debt. a. Prepare joumal entries for the organization's financial activities during the year. b. Prepare the year-end statement of activities and statement of financial position.

Answer rating: 100% (QA)

Solution a Music and Math Camp Inc General Journal Debit Credit Cash 4087460 Support Contributionswithout donor restriction 3640000 Support Contributi... View the full answer