Without Fund Accounting
Without Fund Accounting
Here we will prepare a set of financial statements for SpringTime without using fund accounting. With the information below we will prepare journal entries which we will post to a general ledger. Using our final trial balance and the 1999 trial balance we used in our Fund Accounting discussion, we will create the financial statements.
General Ledger
Financial Statements
December 31, 2000
- Statement of Financial Position
- Statement of Operations
- Statement of Changes in Net Assets
- Statement of Cash Flows
- Notes to the Financial Statement
Let us first enter the synoptic journal totals for all the cash transactions during the year. Below are the totals of the year’s cash transactions:
SpringTime
Synoptic Journal Totals - Operating Account - Dr (Cr)
December 31, 2000
| Bank | Admin Expense | Spring Fling Expenses | Spring Fling Receipts | Unrestricted receipts | Flower Pin receipts | Endowment receipt | Bond Purchase |
|---|---|---|---|---|---|---|---|
| 500 | 400 | 100 | (700) | (100) | (200) | (10,200) | 10,200 |
SpringTime
Synoptic Journal Totals - Capital Account - Dr (Cr)
December 31, 2000
| Bank | Debt Contribution | Debt Payment |
|---|---|---|
| (60) | (100) | 160 |
- Enter the opening balances using the attached trial balance taken from our Fund Accounting discussion.
- Just before the 1999 year-end, someone pledged to give SpringTime $100 and paid the amount in January 2000 before the 1999 statements were completed. In 2000, the Board decided the money should be used for capital expenditures.
- Of the Spring Fling expenditures recorded in the 2000 synoptic, $100 related to the 1999 program. Also just before the 2000 year-end, SpringTime received an invoice for $100 for the 2001 Spring Fling expenses, the invoice was payable on receipt.
- At the year-end, SpringTime was still owed $100 from flower pin sales from various distributors. One of the flower pin distributors, owing $50, is having serious financial difficulties and SpringTime’s directors doubt they will ever receive the money.
- The value of flower pins in the ending inventory was $200.
- In the fall of 2000 SpringTime received $300 for its spring 2001 Spring Fling, in the prior fall it received only $200 for the spring 2000 program.
- During the year, SpringTime was given a desk with a fair value of $200. Amortization expense for the year amounted to $110, of which $60 related to contributed or funded assets.
- During the year SpringTime received a $10,200 endowment from a donor who cried "SpringTime forever" and directed SpringTime to invest in bonds and add half the interest to the endowment and use the other half on annual Spring Fling expenses. On June 30, 2000, SpringTime purchased a new issue of ten year bonds for $10,200, paying interest annually at 5% on June 30. The bond has a face value of $10,000, maturing June 30, 2010. The bond had a market price of $10,000 at December 31, 2000, however most leading analysts expect that bond prices will be increasing over the next few years.
- Bank loan payments of $100 plus 10% interest are due every June 30. At the beginning of the year someone contributed $100 to help repay the debt.