Question

Record the eight transactions (1-8) below on the worksheet provided with the exam.

Be sure to identify the accounts impacted by each transaction and show that the

transactions are balanced. You must enter each transaction in the worksheet provided.

1) Took out a $50,000 bank loan. SF also signed a contract with a local car

dealer to buy a van for their summer program and gave the dealer a $1,000

deposit.

2) Received $50,000 in contribution pledges and cash contributions from

members of the Konkuk community. $25,000 of the contributions were

received in cash. KF expects that 20% of the remaining pledges will not be collected.

3) Received a check for $10,000 from the Korea Society. This amount includes

the final payment of $2,000 from a grant made by the Korea Society in 2015 as

well as new grant for the remainder.

4) Purchased a van for $50,000. The van is expected to have a useful life of 10

years and no residual value. KF uses straight-line depreciation. The van

was purchased at the beginning of the year.

5) Purchased $5,000 worth in supplies for the Summer Camp. KF paid 80% of

the cost of the supplies in cash.

6) KF paid its employees $30,000 in wages during the fiscal year. Wage expense

for the year was $25,000. The payment included the wages payable balance

outstanding from fiscal year 2017.

7) By the end of the year, LU used $4,000 worth of supplies to operate their

summer camp.

8) Complied with terms of the bank loan, which require KF to pay the bank

$1,400. That includes interest for the year at an annual rate of 2% plus a

portion of the principal.

29. Prepare a Balance Sheet for KF as of December 31, 2018, the last day of fiscal

year, along with a comparative balance sheet for the prior fiscal year, 2017.

30. Prepare an Activity Statement for KF for the fiscal year ending December 31,

2018.

31. Prepare a Cash Flow Statement for KF for the fiscal year ending December 31,

2018.

28. Konkuk Foundation (KF) began operations on January 1st 2018, the first day of its fiscal year with the assets, liability and net asset balances shown in the following table Beginning Balance Account Cash 25,000 2,000 2,000 Grants Receivable Inventory Unrestricted Net Assets Pledges Receivable Property, plant, and equipment Wages Payable S S S 50,000 1,000 25,000 S 5,000

Answer 1

In. The given activity statement is not prepared because the sales for the particular is not give i required more info to prepare this is prepared inthe basis of available info .

inthe below balance sheet value taken by direct computation

and not showed the individual calculation etc

Duinal entries Boot Ate 10 Bant toanAle Being te amant a loantatan oY S0,000 $S0,000 Aramce forehicle Ate TOBancte Gshtu Ov 3 Ranbte ops o Pledge Au (reing Goh Contobdon Pledge 9 So reannd Re Ceved $D,0 Rantau Gvant rece valblete Gsan t vecavei Dr Sood KOYeusoiet) (Ieina Gvant recaircd Karea socet PulclakkAu Reing pesclamd) appiicAe DV J240 $G0 Pdelinash) Are oV 30,00 WangesAte 7 . PBanrAu Contal tobich asasRate p 1400 Rankloan Ae 70Bankstu Ov 00 Prine pal t vehiceAu 9. TO Tanttu raing enle peschtes)

Babme shaer bnetsal 1-13 eatoi tihes ACler 904-n 9a-19 $ ut Ant ins Tin GupThel Ospoo 66600 19,00 Gvut 9090 Wase pauable Bantion C960aventor Brwelticta netaikr 3030 2600 Cheditors helees vEcivales 300 Propesty pianE 2-59.90 Canabl ahttow statement forta ras 2a13 Pashae from acivity Paid osupplies wases GAh from knance Necerve fogm Banc to0 CO hasi Aeantins 2000 (39a0 34000 Potyment af intpncipalnt Rcavel foom Gvont plele Recoiva from checie (400