Entries and Statement of Activities for an Other Not-for-Profit Organization [AICPA Adapted]
A group of civic-minded merchants in Eldora organized the “Committee of 100” for the purpose of establishing the Community Sports Club, a not-for-profit sports organization for local youth. Each of the committee’s 100 members contributed $1,000 toward the club’s capital and, in turn, received a participation certificate. In addition, each participant agreed to pay dues of $200 a year for the club’s operations. All dues have been collected in full by the end of each fiscal year ending March 31. Members who have discontinued their participation have been replaced by an equal number of new members through transfer of the participation certificates from the former members to the new ones. Following is the club’s trial balance for April 1, 20X2:
| Debit | Credit |
Cash | $ 9,000 |
|
Investments (at market, equal to cost) | 58,000 |
|
Inventories | 5,000 |
|
Land | 10,000 |
|
Building | 164,000 |
|
Accumulated Depreciation—Building |
| $130,000 |
Furniture and Equipment | 54,000 |
|
Accumulated Depreciation—Furniture and Equipment |
| 46,000 |
Accounts Payable |
| 12,000 |
Participation Certificates (100 at $1,000 each) |
| 100,000 |
Cumulative Excess of Revenue over Expenses |
| 12,000 |
Total | $300,000 | $300,000 |
Transactions for the year ended March 31, 20X3, were as follows:
Collections from participants for dues | $20,000 |
Snack bar and soda fountain sales | 28,000 |
Interest and dividends received | 6,000 |
Additions to voucher register: |
|
House expenses | 17,000 |
Snack bar and soda fountain | 26,000 |
General and administrative | 11,000 |
Vouchers paid | 55,000 |
Assessments for capital improvements not yet incurred (assessed on March 20, |
|
20X3; none collected by March 31, 20X3; deemed 100% collectible during |
|
year ending March 31, 20X4) | 10,000 |
Unrestricted bequest received | 5,000 |
Adjustment Data
1. Investments are valued at market, which amounted to $65,000 on March 31, 20X3. There were no investment transactions during the year.
2. Depreciation for year:
Building | $4,000 |
Furniture and equipment | 8,000 |
3. Allocation of depreciation:
House expenses | $9,000 |
Snack bar and soda fountain | 2,000 |
General and administrative | 1,000 |
4. Actual physical inventory on March 31, 20X3, was $1,000 and pertains to the snack bar and soda fountain.
Required
a. Record the transactions and adjustments in journal entry form for the year ended March 31, 20X3. Omit explanations.
b.Prepare the appropriate all-inclusive statement of activities for the year ended March 31, 20X3.
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