One world not three an international nonprofit relief agency

Assignment Help Accounting Basics
Reference no: EM131107961

One World Not Three (OWNT) Relief is an international nonprofit relief agency base in the United States.  OWNT recently celebrated its tenth anniversary and is in the middle of trying to expand its operations and funding sources.  OWNT uses accrual accounting and follows all US GAAP and FASB accounting rules when reporting its financial situation.  During its 2006 fiscal year (July 1, 2005-June 30, 2006), OWNT recorded the following financial events: 

1.  Earned $250,000 by providing disaster readiness training programs.  Received $235,000 in cash. 

2.  Took out a $500,000 bank loan.  OWNT is hoping to buy the building next door for $500,000 in order to double its office space.

 3.  Received $200,000 in contribution pledges.  $150,000 of which was received in cash.  OWNT expects that 10% of the pledges not immediately collected in cash will not be collected. 

4.  Received a final payment of $350,000 from a three-year grant made three years ago.

 5.  Purchased the building next door for $560,000.  OWNT expects that its current building will last another 20 years and that the new building has a life of 35 years.  OWNT uses straight-line depreciation. 

6.  Purchased $175,000 in first aid kit inventory.  Paid 80% of the inventory in cash.  The 20% balance will be paid in August 2006. 

7.  OWNT paid its employees $580,000 in wages.  Wage expense for the year was $600,000.  The payment included the wages payable balance outstanding from fiscal year 2005. 

8.  First aid kits inventory equals $12,000 at the end of the year. 

9.  Complied with the terms of the bank loan, which require OWNT to repay $28,000 of the loan at the end of the fiscal year 2006 plus pay 7% interest on the outstanding principal balance carried during the year. 

Using the enclosed OWNT Relief Fund's Statement of Financial position from fiscal year 2005, prepare the following financial statements for One World Not Three Relief Fund's fiscal year 2006:

1.    Show the entries above using transaction worksheet

2.    Balance Sheet as of June 30, 2005

3.    Activity Statement for period 

 

One World Not Three Relief Fund Statement of Financial Position As of June 30, 2005 

Assets

Cash                                           142,000

A/R                                             3,000

Pledges Receivables, net              394,000

(note:  $6000 allowance for

pledges not collectible)

Inventory                                      28,000

Property, Plant and Equipment        240,000

Total Assets                                  $807,000

 

Liabilities

A/P                                              120,000

Wages Payable                              14,000

Total Liabilites                               134,000 

Net Assets

Unrestricted                                 373,000

Permanently restricted                  300,000

Total Net Assets                           $673,000

Total Liabilities and Net Assets     $807,000

Reference no: EM131107961

Questions Cloud

Determine the common speed of the blocks : Use the principle of conservation of linear momentum to determine the common speed of the blocks just after the collision. (carry the answer to one decimal place.) height = .60 m
Favourite dungeons and dragons character : You are a hero with a broken sword (Conan, Boromir, or your favourite Dungeons and Dragons character) being chased by a troop of bad guys (bandits, orcs, . . .). Fortunately you are on a horse and they are not. Unfortunately your horse is tired and t..
Write a quadratic function that gives the area : Write a quadratic function that gives the area A of the frame as a function of x.
One world not three an international nonprofit relief agency : One World Not Three (OWNT) Relief is an international nonprofit relief agency base in the United States.  OWNT recently celebrated its tenth anniversary and is in the middle of trying to expand its operations and funding sources.  OWNT uses accrual a..
Question regarding the municipal garbage-collection : Due City has decided to shift municipal garbage-collection financing from the property tax to user chargers. Describe some ways in which such a system could be implemented. Make certain that your system is primarily one of use charge, not a disgui..
How much energy is delivered to the unfortunate enemy : How much energy is delivered to the unfortunate enemy with a single pulse, assuming a steady current?
Explain the striking similarity between these two documents : Read the Egyptian Hymn to Aton and Psalm 104 from the Torah (first 5 books of the Hebrew Bible/Old Testament). How do you explain the striking similarity between these two documents
Three-year projection of the income of the business : Based on the information provided, do a three-year projection of the income of the business and the total taxes for a partnership and for a corporation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd