Question

1 Exercise 10-10 The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management The Foundation had the following preclosing trial balance at December 31, 2017, the end of Its fiscal year 10 polnts Credits 25,300 Debits Trial Balance-December 31, 2817 Accounts payable Accounts receivable (net) Accrued interest receivable Accumulated depreciation Cash $ 48,608 16,700 eBook 3,502, 288 117,408 27,188 2,492,e0e 846,e08 2,872,e08 Contributed services-unrestricted Contributions-unrestricted Contributions-temporarily restricted Contributions-permanently restricted Currer Ask pledges receivable (net) 81,300 1,631,300 125,600 Education progran expenses Fund-raising expense Grant revenue-temporarily restricted Training seninar expenses Land, buildings, and equipment Long-term investments Managenent and general expense Print 93,200 4,829, 280 5,960,500 2,915,300 395,600 References Net assets: Unrestricted (January Temporarily restricted (January 1) Permanently restricted (Januaryy 1) Net gains on endowment investnents-unrestricted 496,400 714,200 1,354,708 18,700 Noncurrent pledge receivables (net) Progran service revenue-unrestricted Postemployment benefits payable (noncurrent) Reclassifications: 390,288 5,978,108 288,908 Satisfaction of program restrictions Satisfaction of time restrictions 267,408 219,108 Satisfaction of program restrictions Satisfaction of time restrictions Research progran expenses 267,488 219,10e 1,323,388 752,e88 Short-term investments Supplies inventory 33,800 $19,187,300 $19, 187,388 Totals Required: a. Prepare closing entrles for the year-end, using separate entrles for each net asset classificaton. b. Prepare a Statement of Activitles for the year ended December 31, 2017. c. Prepare a Statement of Financlal Position as of December 31, 2017

Answer 1

Ombudsman Foundation Requirement 1 Requirement 2 Closing Enteries Trans Statement of Activities Debit in $ Credit in $ Particulars For the Year ended 31.12.2017 Reclassification to Unrestricted Net Assets- Temporarily Permanently 1 Expiration of Time Restrictions a/c Dr. Unrestricted Restricted Restricted Total 219100 Reclassification to Unrestricted Net Assets- Revenues Satisfaction of Program Restrictions a/c Dr. 267400 Program Service Revenue 5978100 5978100 Contributions Unrestricted a/c Contributions Revenue 2872000 Dr. 2492000 2492000 846000 6210000 Program Service Revenue Unrestricted a/c Dr. Net Gains on Endowment Investments Unrestricted a/c Dr. 5978100 Contributed Services 27100 27100 18700 Grant Revenue 93200 93200 Contributed Services Unrestricted a/c Net Gains on Endowment Investments 18700 Dr. 27100 18700 Net Assets Released from Restrictions To Training Seminar Expense 4829200 To Education Program Expense Satisfaction of Time Restrictions 1631300 219100 -219100 0 To Research Program Expense Satisfaction of Program Restrictions 1323300 267400 -267400 0 12327100 To Management and General Expense Total Revenues 395600 9002400 452700 2872000 To Fund Raising Expense 125600 To Net Assets Unrestricted 697400 Expenses 4829200 Training Seminar Expense 4829200 Contributions- Temporarily Restricted a/c Grant Revenue- Temporarily Restricted a/c Education Program Expense Research Program Expense 1631300 2 Dr. 846000 1631300 93200 1323300 Dr. 1323300 To Reclassification from Temporarily Restricted Total Program Service Expense 7783800 7783800 Fund Raising Net Assets-Expiration of Time Restrictions 125600 219100 125600 To Reclassification to Unrestricted Net Assets- Administration 395600 395600 Satisfaction of Program Restrictions Total Supporting Service Expenses Total Expenses 521200 267400 521200 To Net Assets - Temporarily Restricted 8305000 452700 8305000 Contributions - Permanently Restricted a/c 452700 2872000 4022100 3 Dr. 2872000 Increase in Net Assets 697400 Net Assets January 1 To Net Assets Permanently Restricted 496400 714200 1354700 2872000 2565300 Net Assets December 31 1166900 4226700 6587400 1193800

Statement of Financial Position As at 31.12.2017 Current Assets: Cash 117400 Short Term Investments 752000 Supplies Inventories 33800 Receivables Accounts (Net) 48600 Pledges (Net) 81300 Accrued Interest 16700 Total Current Assets 1049800 Non Current Assets: Pledges Receivable 390200 Long Term Investments Land, Buildings and Equipment (Net) 2915300 2458300 5763800 Total Assets 6813600 Current Liabilities: Accounts Payable 25300 Total Current Liabilities 25300 Non Current Liabilities Post Employment Benefits Payable 200900 200900 Total Liabilities 226200 Net Assets Unrestricted 1193800 Temporarily Restricted Permanently Restricted 1166900 4226700 Total Net Assets 6587400 Total Liabilities and Net Assets 6813600