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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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: Restricted For Endowment Purposes 87,000 Unrestricted 290,870 Total $439,370 U namortized deferred contributions amount are calculated as follows:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/18/2012 for the course ACCT 4650 taught by Professor Jemery during the Spring '12 term at Kwantlen Polytechnic University.

Page1 / 6

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online