Non Profit Accounting



Non Profit Accounting

Answer 1)

The City of Cricket Hill

Statement of Activities

Fiscal Year Ended December 31, 2009

Temporary

Permanent

Un-restricted-Net- Assets

Restricted -Net- Assets

Restricted-Net-Assets

Total

 

 

 

 

 

 

 

 

REVENUES

 

General property taxes revenue

$13,000,000

$13,000,000

State Grants

$ 4, 000,000

$4,000,000

Foundation Contri - public safety

$ 1, 200, 000

$ 1, 200, 000

Corp Contri - grants for highways

$300,000

$300,000

Enhancement - invesmnet fair value

$70,000

$70,000

Interest on investments

$108,000

$108,000

Principal paid - long liabilities

$ 1, 100, 000

$1,100,000

Interest expense - long-term liabilities

$ 100, 000

$100,000

 

 

TOTAL REVENUES

$19,878,000

 

 

EXPENSES

 

Expenses for general administration

$1,700,000

$1,700,000

Public safety expenditure

$ 4, 200, 000

$ 4, 200, 000

Expenses for highways and streets

$2,100,000

$2,100,000

Expenses for health and welfare

$3,000,000

$3,000,000

Fees - health and welfare programs

$270,000

$270,000

Transfer to Enterprise Fund

$2,500,000

$2,500,000

Collection of interfund

$1,000,000

$1,000,000

Proceeds from sale of capital assets

$7,000

$7,000

Net assets, governmental activities

$3,017,000

$3,017,000

 

 

TOTAL EXPENSES

$17,794,000

 

 

 

 

SURPLUS / (DEFICIT)

$2,084,000

 

 

 

 

 

 

 

 

Answer 2)

What are the eligibility requirements of this grant?

The eligibility requirement for this grant is that the child family income should be less than $25,000 as they consider coming low income families and are very much devoted towards studies. The child will be given up to $1,000 per for the education purpose. The grant offers reimbursement for the entire allowable costs for leading the program twice a month.

On 2/1/2005, should the Town of Elmwood enter any journal entry into the accounting system?

Yes, the Town of Elmwood shall enter journal entry in to the accounting system for proper contribution given by the stat of government. The following is the journal entry of this grant given by the government:

Unrestricted award

Notification of award

 

 

Receivable

$100,000

 

Contribution Revenue

 

$100,000

 

 

 

Receipt of fund

 

 

Cash

$100,000

 

Receivable

 

$100,000

As it is not clear which award has been provided in such cases, the grants are considered to be unrestricted award.

On 12/31/2005, Town of Elmwood shall enter the following journal entry into the accounting system as the grants have been transfer to the beneficiaries and cash/investment account will reduce.

Cost reimbursable grants

When Award Received

 

 

Cash/investment

$100,000

 

Due to beneficiary

 

$100,000

 

 

 

When funds are transferred to beneficiary

 

 

Due to beneficiary

$100,000

 

Cash/investment

 

$100,000

As of 12/31/2005, identify the following:

Cash Received

The cash received was $ 100, 000 out of which $ 74, 000 had been finished in providing recreational services for eligible beneficiaries. Hence, at this date repayment of $ 71, 000 had been received from the state by this date.

Program Revenue

At this date the program revenue was $26,000 as $ 74, 000 and had already been finished in providing recreational services for eligible beneficiaries. Moreover, such grants are offered for nonprofit purpose, so there would be no such program revenue for these recreational programs.

Expenditures

The expenditure at this date is $ 74, 000, this amount was given to the child worth of $1,000 per provided that family annual income is less than $25,000. By 12/31/2005, Elmwood's fiscal year-end, $74,000 had been finished in providing recreational services for eligible beneficiaries.

Answer 3)

City of Buffalo River

Statement of Revenues & Expenses

Year ended 2009

Revenues

$ 4, 200, ...