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Accounting Tutorial

Using the fictitious results of a fictitious organization named SpringTime, we have a chance to:

SpringTime is a small non-profit organization with a December 31 year end and is located in Springfield, Alberta. It runs one major program each year called the "Spring Fling." In the fall of every year, SpringTime begins collecting donations for the Spring Fling. SpringTime sometimes receives donations of capital assets, and has a loan for some major capital assets purchased years ago. Throughout the year, SpringTime sells flower pins to promote the event and raise additional revenues.

In posting the year 2000 journal entries for SpringTime we will:

To process the entries, we will continue with the accounting we began for SpringTime in our discussion of Fund Accounting.

In our discussion of fund accounting, we presented the 1999 results in three formats:

Accounting for the results using these three different approaches will result in three different sets of financial statements.

The journal entries we must post where we have no funds and where we have two general funds will be identical, except where we post the opening balances, as our opening fund balances have been separated into two funds. As mentioned above, the real differences in accounting treatment will occur when we employ restricted funds.