WSS-1_-_Solution - ACCT 4650 WSS 1 Solution Part A As WSS...

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ACCT 4650 WSS- 1 Solution - Part A As WSS is not using fund accounting, they will have to use the deferral method of revenue recognition. Based on this approach, the required financial statements are as fol lows: WSS Organization Statement of Operations and Fund Balances Year Ending December 31, 2009 Revenues: Unrestricted Contributions ($726,000 + $56,000) $782,000 Amortization of Deferred Contributions* 210,500 Investment Income 4,370 Total Revenues $996,870 Expenses: Wages And Salaries $244,000 Cost Of Materials Provided 306,000 Transportation Costs 74,000 Rent 24,000 Other Expenses 58,000 Total Expenses $706,000 Excess of Revenues over Expenses $290,870 Opening Unrestricted Net Assets Nil Closing Unrestricted Net Assets $290,870 "Contributions restricted to skiing activity can be recognized to the extent of expenses incurred out of restricted funds. For WSS, this amount would be $210,500 [(50%)($421,000)]. WSS Organization Statement of Cash Flows Year Ending December 31, 2009 Cash Flows from Operating Activities: Unrestricted Contributions $726,000 Restricted Contributions 242,000 Investment Income 4,370 Expenses ($706,000 - $30,000) (676,000) Total $296,370 Cash Flows from Financing and Investing: Endowment Contributions 87,000 Investment of Endowment Contributions (87,000) Increase in Cash $296,370 Opening Cash Balance Nil Closing Cash Balance $296,370
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ACCT 4650 WSS Organization Statement of Financial Position As at December 31, 2009 Cash (See Statement Of Cash Flows) $296,370 Investments 87,000 Contributions Receivable 56,000 Total $439,370 Accounts Payable $ 30,000 Deferred Contributions* 31,500 Net Assets:
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