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:
Trial Balance—December 31, 2017 | Debits | Credits | ||||
Accounts payable | $ | 23,900 | ||||
Accounts receivable (net) | $ | 45,800 | ||||
Accrued interest receivable | 15,800 | |||||
Accumulated depreciation | 3,313,400 | |||||
Cash | 111,100 | |||||
Contributed services—unrestricted | 25,500 | |||||
Contributions—unrestricted | 2,346,000 | |||||
Contributions—temporarily restricted | 796,000 | |||||
Contributions—permanently restricted | 2,704,000 | |||||
Current pledges receivable (net) | 76,500 | |||||
Education program expenses | 1,535,100 | |||||
Fund-raising expense | 118,300 | |||||
Grant revenue—temporarily restricted | 87,700 | |||||
Training seminar expenses | 4,544,100 | |||||
Land, buildings, and equipment | 5,608,700 | |||||
Long-term investments | 2,743,200 | |||||
Management and general expense | 372,200 | |||||
Net assets: | ||||||
Unrestricted (January 1) | 467,000 | |||||
Temporarily restricted (January 1) | 671,900 | |||||
Permanently restricted (January 1) | 1,274,500 | |||||
Net gains on endowment investments—unrestricted |
17,800 | |||||
Noncurrent pledge receivables (net) | 371,300 | |||||
Program service revenue—unrestricted | 5,688,500 | |||||
Postemployment benefits payable (noncurrent) |
191,200 | |||||
Reclassifications: | ||||||
Satisfaction of program restrictions | 254,300 | |||||
Satisfaction of time restrictions | 208,500 | |||||
Satisfaction of program restrictions | 254,300 | |||||
Satisfaction of time restrictions | 208,500 | |||||
Research program expenses | 1,282,700 | |||||
Short-term investments | 750,400 | |||||
Supplies inventory | 32,200 | |||||
Totals | $ | 18,070,200 | $ | 18,070,200 | ||
Required:
a. Prepare closing entries for the year-end, using
separate entries for each net asset classification.
b. Prepare a Statement of Activities for the year
ended December 31, 2017.
c. Prepare a Statement of Financial Position as of
December 31, 2017.
Solution A: Closing Entries | Solution B | ||||||||
Particular(s) | Debit (in $) | Credit (in $) | Statement of Activities during the year 31st Dec., 2017 | ||||||
Expenditures | Amount (in $) | Incomes | Amount (in $) | ||||||
Statement of Activities A/c Dr.. | 7,852,400 | To Education program expenses | 1,535,100 | By Net gains on endowment investments—unrestricted | 17,800 | ||||
To Education program expenses | 1,535,100 | To Fund-raising expense | 118,300 | By Program service revenue—unrestricted | 5,688,500 | ||||
To Fund-raising expense | 118,300 | To Training seminar expenses | 4,544,100 | By Contributed services—unrestricted | 25,500 | ||||
To Training seminar expenses | 4,544,100 | To Management and general expense | 372,200 | By Contributions—unrestricted | 2,346,000 | ||||
To Management and general expense | 372,200 | To Research program expenses | 1,282,700 | By Contributions—temporarily restricted | 796,000 | ||||
To Research program expenses | 1,282,700 | To Excess of Incomes over expenditure (balancing figures) | 3,813,100 | By Contributions—permanently restricted | 2,704,000 | ||||
(Being expenses transferred to statement of activities) | By Grant revenue—temporarily restricted | 87,700 | |||||||
Net gains on endowment investments—unrestricted A/c Dr.. | 17,800 | 11,665,500 | 11,665,500 | ||||||
Program service revenue—unrestricted A/c Dr.. | 5,688,500 | ||||||||
Contributed services—unrestricted A/c Dr.. | 25,500 | Solution C | |||||||
Contributions—unrestricted A/c Dr.. | 2,346,000 | Statement of Finanacial Possition as on 31st Dec., 2017 | |||||||
Contributions—temporarily restricted A/c Dr.. | 796,000 | Liabilities | Amount (in $) | Assets | Details | Amount (in $) | |||
Contributions—permanently restricted A/c Dr.. | 2,704,000 | Excess of Incomes over expenditure (balancing figures) | 3,813,100 | Land, buildings, and equipment | 5,608,700 | ||||
Grant revenue—temporarily restricted A/c Dr.. | 87,700 | Accounts payable | 23,900 | Less: Accumulated depreciation | (3,313,400) | 2,295,300 | |||
To Statement of Activities A/c | 11,665,500 | Postemployment benefits payable (noncurrent) | 191,200 | Long-term investments | 2,743,200 | ||||
(Being Incomes transferred to statement of activities) | Other liabilities | Noncurrent pledge receivables (net) | 371,300 | ||||||
Unrestricted (January 1) | 467,000 | Accounts receivable (net) | 45,800 | ||||||
Statement of Activities A/c Dr.. | 3,813,100 | Temporarily restricted (January 1) | 671,900 | Accrued interest receivable | 15,800 | ||||
To Excess of Incomes over expenditure (balancing figures) | 3,813,100 | Permanently restricted (January 1) | 1,274,500 | Current pledges receivable (net) | 76,500 | ||||
(Being net surplus transferred to Balance sheet) | Short-term investments | 750,400 | |||||||
Supplies inventory | 32,200 | ||||||||
Cash | 111,100 | ||||||||
6,441,600 | 6,441,600 |
The Ombudsman Foundation is a private not-for-profit organization providing training in dispute r...
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