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

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