Step 2
Step 2
We will now enter the opening balances for SpringTime, as taken from the 1999 trial balance.
Note that we must first "close out" the operating and capital funds to arrive at our ending fund balances. The fund balances on the trial balance provided are the opening fund balances. (The opening balance is the balance at the beginning of the period, before the revenues, expenses and transfers for the year have been applied to arrive at the ending, or closing balance.)
dr (cr) | |
---|---|
Operating fund - opening balance | (15) |
Flower Pin Revenue | (450) |
Flower Pin cost of sales | 150 |
Spring Fling contributions | (500) |
Unrestricted contributions | (100) |
Administration | 65 |
Spring Fling expenses | 400 |
Operating fund - closing balance | (450) |
dr (cr) | |
---|---|
Capital fund - opening balance | (885) |
Capital contributions | - |
Amortization | 100 |
Interest expense | 65 |
Capital fund - closing balance | (720) |
We now have all the opening balances which we can enter to the general ledger.
dr | cr | |
---|---|---|
Bank - operating fund | 350 | |
Bank - capital fund | 150 | |
Contributions receivable | 100 | |
Flower Pin inventory | 300 | |
Capital assets | 2000 | |
Accumulated amortization | 800 | |
Accounts payable | 100 | |
Bank loan - current portion | 130 | |
Bank loan (for capital assets) | 500 | |
Deferred contributions | 200 | |
Operating fund - opening balance | 450 | |
Capital fund - opening balance | 720 |