ACC - Chapter 10 Problem Jefferson Animal Rescue
Question # 00058693
Posted By:
Updated on: 04/02/2015 02:22 AM Due on: 04/29/2015
Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2014, the organization had the following account balances:
Debits Credits
Pledges Receivable $3,500
Cash 25,000
Land Buildings & Equipment 14,000
Supplies Inventory 4,000
Accounts Payable $5,800
Accrued Wages Payable 500
Accumulated Depreciation 19,300
Notes Payable to Bank 25,000
Net Assets – Temporarily Resticted
for use in KADC Program 2,500
for purchase of Capital Assets 7,200
Unrestricted Net Assets 13,200
Total $73,500 $73,500
.:.
The following took place during 2015:
1. Additional supplies were purchased on account in the amount of $17,020.
2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 3 percent is expected to be uncollectible. The remainder is expected to be collected in 2015.
3. Supplies used for animal care amounted to $16,700.
4. Payments made on accounts payable amounted to $17,725.
5. Cash collected from pledges totaled $94,500.
6. Salaries were paid in the amount of $47,000. Included in this amount is the accrued wages payable at the end of 2014. (The portion of wages expense attributable to administrative expense is $15,000 and fund-raising expense is $2,000. The remainder is for animal care.)
7. Jefferson Animal Rescue entered an agreement with KDAC, Channel 7 News, to find more homes for shelter pets. This special adoption program highlights a shelter animal in need of a home on the evening news the first Thursday of each month. The program was initially funded by a restricted gift. During 2015, Jefferson Animal Rescue paid $1,800 ($150 per month) for the production of the monthly videos. In December 2015, the original donor unconditionally pledged to support the project for an additional 20months by promising to pay $3,000 in January 2016 (all of this is expected to be collectible).
8. The shelter’s building was partially financed by a bank note with an annual interest rate of 6 percent. Interest totaling $1,500 was paid during 2015. Interest is displayed as Other Changes in the Statement of Activities.
9. Animal medical equipment was purchased during the year in the amount of $5,500. Funding came from a special capital campaign conducted in 2014.
Additional information includes:
10. Depreciation for the year amounted to $6,000. (The portion of depreciation expense attributable to administrative is $2,000, and the remainder is related to animal care.)
11. Unpaid wages relating to the final week of the year totaled $686 (all animal care).
Using the information above and the Excel template provided:
a. Prepare journal entries and post entries to the T-accounts.
b. Prepare closing entries.
c. Prepare a Statement of Activities, Statement of Financial Position, and Statement of Cash Flows for the year ending December 31, 2015.
Debits Credits
Pledges Receivable $3,500
Cash 25,000
Land Buildings & Equipment 14,000
Supplies Inventory 4,000
Accounts Payable $5,800
Accrued Wages Payable 500
Accumulated Depreciation 19,300
Notes Payable to Bank 25,000
Net Assets – Temporarily Resticted
for use in KADC Program 2,500
for purchase of Capital Assets 7,200
Unrestricted Net Assets 13,200
Total $73,500 $73,500
.:.
The following took place during 2015:
1. Additional supplies were purchased on account in the amount of $17,020.
2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 3 percent is expected to be uncollectible. The remainder is expected to be collected in 2015.
3. Supplies used for animal care amounted to $16,700.
4. Payments made on accounts payable amounted to $17,725.
5. Cash collected from pledges totaled $94,500.
6. Salaries were paid in the amount of $47,000. Included in this amount is the accrued wages payable at the end of 2014. (The portion of wages expense attributable to administrative expense is $15,000 and fund-raising expense is $2,000. The remainder is for animal care.)
7. Jefferson Animal Rescue entered an agreement with KDAC, Channel 7 News, to find more homes for shelter pets. This special adoption program highlights a shelter animal in need of a home on the evening news the first Thursday of each month. The program was initially funded by a restricted gift. During 2015, Jefferson Animal Rescue paid $1,800 ($150 per month) for the production of the monthly videos. In December 2015, the original donor unconditionally pledged to support the project for an additional 20months by promising to pay $3,000 in January 2016 (all of this is expected to be collectible).
8. The shelter’s building was partially financed by a bank note with an annual interest rate of 6 percent. Interest totaling $1,500 was paid during 2015. Interest is displayed as Other Changes in the Statement of Activities.
9. Animal medical equipment was purchased during the year in the amount of $5,500. Funding came from a special capital campaign conducted in 2014.
Additional information includes:
10. Depreciation for the year amounted to $6,000. (The portion of depreciation expense attributable to administrative is $2,000, and the remainder is related to animal care.)
11. Unpaid wages relating to the final week of the year totaled $686 (all animal care).
Using the information above and the Excel template provided:
a. Prepare journal entries and post entries to the T-accounts.
b. Prepare closing entries.
c. Prepare a Statement of Activities, Statement of Financial Position, and Statement of Cash Flows for the year ending December 31, 2015.
-
Rating:
/5
Solution: ACC - Chapter 10 Problem Jefferson Animal Rescue (Solution)