Assignment #1: Transaction Analysis
After another successful year, Good Works Nonprofit was able to report back to its donors about all the great work they did in 2015 (their fiscal year is the calendar year). The next year, they were awarded another foundation grant to continue their work, this time for $10,000. They received the payment for the grant on January 15, and immediately bought $6,000 of program supplies on credit (due in 30 days). They paid their bill in full on February 10. They also started a fundraising appeal in February and were successful in receiving contributions of $2,000 at the end of February and at the end March. Other expenses they incurred during the year were half-yearly rent payments of $1000, paid June 30 and December 31 and postage of $200 for the appeal on February 15. On December 31, they purchased $3,000 of supplies on credit (due in 30 days). At the end of the year, they have ‘used up’ one year of the vehicle’s useful life and record one year of depreciation expense, calculated as $1,000.
Within the narrative above, there are ten accounting transactions that you can record on your transaction analysis worksheet (assume these were the only transactions in the fiscal year for the sake of the exercise).
Instructions
(1) Write out the ten transactions, and then record them in the transaction analysis worksheet. Remember to start with the ending balances from the previous year for your asset, liabilities and net asset accounts. The revenue and expense accounts start at zero at the beginning of each new year. Then, calculate the ending balances of each account.
(2) Prepare a Statement of Financial Position and Statement of Activities for the end of the fiscal year.
Good Works Nonprofit
Statement of Financial Position
As at December 31
2016
2015
ASSETS
Cash
$24,000
Vehicle
$6,000
Accumulated Depreciation
($1,000)
Total Assets
$29,000
LIABILITIES
Accounts Payable
$0
Total Liabilities
$0
NET ASSETS
Beginning Balance, Unrestricted
$27,000
Change in Net Assets, Unrestricted
$2,000
Ending Net Assets, Unrestricted
$29,000
Total Net Assets
$29,000
Total Liabilities and Net Assets
$29,000
Good Works Nonprofit
Statement of Activities
January 1 to December 31, 2016
REVENUES
Total Revenues
EXPENSES
Total Expenses
Change in Net Assets (Surplus)
1
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