WSS-2_-_Solution - ACCT 4650 WSS 2 Solution Part A As WSS...

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ACCT 4650 WSS 2 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 follows: WSS Organization Statement of o perations and Fund Balances Year Ending December 31, 2010 Revenues: Unrestricted Contributions ($842,300 + $53,250) $ 895,550 Amortization of Deferred Contributions' 262,192 Investment Income 4,820 Total Revenues $1,162,562 Expenses: Wages and Salaries $ 378,000 Cost of Materials Provided 410,500 Transportation Costs 41,000 Amortization Expense [($105,000/20)(1/2)) 2,625 Rent 12,000 Other Expenses 69,200 Total Expenses $ 913,325 Excess of Revenues Over Expenses $ 249,237 Invested in Capital Assets (Net) (139,375) Opening Unrestricted Net Assets 290,870 Closing Unrestricted Net Assets $ 400,732 Contributions restricted to skiing activity can be recognized to the extent of expenses incurred. For WSS, this amount would be $262,192 [(56%)($468,200)). WSS Organization Statement of Cash Flows Year Ending December 31, 2010 Cash Flows from Operating Activities: Unrestricted Contributions ($842,300 + $56,000) $898,300 Restricted Contributions 317,600 Investment Income 4,820 Expenses ($442,500 + $468,200 + $30,000 - $32,430) (908,270) Total $312,450 Cash Flows from Financing And Investing: Purchase Of Building (142,000) Increase in Cash $170,450 Opening Cash Balance 296,370 Closing Cash Balance $466,820 The Unrestricted Contributions have been increased by the $56,000 of contributions re- ceivable from the preceding year. The expenses have been increased by the $30,000 Accounts Payable from the preceding year.
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ACCT 4650 WSS 2 Solution WSS Organization Statement of Financial Position as at December 31, 2010 Cash (See Statement Of Cash Flows) $466,820 Investments 87,000 Contributions Receivable 53,250 Capital Assets: Land 37,000 Building $105,000
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WSS-2_-_Solution - ACCT 4650 WSS 2 Solution Part A As WSS...

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