Statement of cash flows, activities and financial position
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Exercise 4.1
Table 4.9 is a list of the transactions for the Portland after School Program for the second six months of operations. Prepare the journal entries for each transaction including an identification of the t-accounts that will be debited and credit for each transaction.
TABLE 4.9 Journal of the Portland After School Program
July 1, 20XX-December 31, 20XX
(a) July 1, 20XX? Received unrestricted donation check in the amount of $15,000 from
the Multnomah County Department of Health and Human Services.
(b) July 19, 20XX?Paid Great Northwest Insurance Company $9,000 for six more
months of fire and liability insurance coverage.
(c) July 15, 20XX?Paid Portland Arts & Crafts Company $3,000 for additional arts and
crafts supplies.
(d) July 15, 20XX?Transferred temporarily restricted funds in the amount of $3,000
from investments to pay for additional arts and crafts supplies.
(e) July 30, 20XX?Paid Oregon Sporting Goods $5,000 for additional recreational
equipment.
(f) December 31, 20XX?Received fees from parents in the amount of $40,000.
(g) December 31, 20XX?To account for $1,750 in fees from parents earned in the first six
months of operations, but collected in the second six months.
(h) December 31, 20XX?To account for $3,000 in parent fees earned in the second six
months of operations, but not yet collected.
(i) December 31, 20XX?To account for expenses (John's Deli) in the amount of $1,500
incurred during the first six months of operations, but paid in the second six months.
(j) December 31, 20XX?Paid Portland Gas & Electric Company $7,500 for utilities.
(k) December 31, 20XX?Paid salaries and employee-related expenses in the amount of
$55,000.
(l) December 31, 20XX?Paid Pacific Bell Telephone Company $750 for telephone
services.
(m) December 31, 20XX?To expense prepaid insurance in the amount of $9,000.
(n) December 31, 20XX?To expense arts and crafts supplies in the amount of $2,000.
Exercise 4.2
Using the Portland After School Program general ledger (Table 4.10), post the debits and credits for the journal entries from Exercise 4.1 to their appropriate t-accounts.
Exercise 4.3
Prepare a trial balance for the Portland After School Program for the second six months of operation following the format shown in this chapter.
TABLE 4.10 Portland After School Program
General Ledger
(Beginning July 1, 20XX)
Cash Net Assets
$ 64,500 $ 75,250
Prepaid Insurance Investments
$ 0 $10,000
Arts and Crafts Supplies Accounts Payable
$ 500 $ 1,500
Accounts Receivable Expenses
1,750 $ 0
Revenue
$ 0
Exercise 4.4
Prepare a statement of cash flows, a statement of activities (profit and loss summary), and a statement of financial position (balance sheet) for the Portland After School Program for the second six months of operation. Follow the formats shown in Tables 4.6, 4.7, and 4.8.
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4.1
Sr. No. Date Accounts and Explanations Debit Credit
a 1-Jul Cash 15,000
Revenue 15,000
b 19 Prepaid Insurance 9,000
Cash 9,000
c 15 Arts & Crafts Supplies 3,000
Cash 3,000
d 15 Cash 3,000 Funds are transferred from investment to cash
Investments 3,000
e 30 Expense 5,000 The equipment is in the nature which will be used
Cash 5,000 within a year and so is taken as expense
f 31-Dec Cash 40,000
Revenue 40,000
g 31 Cash 1,750
Accounts Receivable 1,750
h 31 Accounts Receivable 3,000
Revenue 3,000
i 31 Accounts Payable 1,500
Cash 1,500
j 31 Expense 7,500
Cash 7,500
k 31 Expense 55,000
Cash 55,000
l 31 Expense 750
Cash 750
m 31 Expense 9,000
Prepaid Insurance 9,000
n 31 Expense 2,000
...
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