Statement of activities, closing entries. The Caring Clinic, a VHWO, conducts two programs: Alcohol and Drug Abuse and Outreach to Teens. It has the typical supporting services of management and fund raising. The condensed trial balances after allocable expenses have been assigned and are presented as follows:
|
Caring Clinic |
||
|
Debit |
||
|
Assets |
|
716,000 |
|
Endowment Assets |
|
256,000 |
|
Alcohol and Drug Abuse Program |
|
322,200 |
|
Outreach to Teens Program |
|
184,100 |
|
Management and General Services |
|
27,600 |
|
Fund-raising Services |
|
50,100 |
|
Cost of Special Events |
|
18,000 |
|
Reclassification Out—Temporarily Restricted— |
|
|
|
Satisfaction of Program Restrictions |
|
143,000 |
|
Reclassification Out—Temporarily Restricted— |
|
|
|
Satisfaction of Equipment Acquisition Restrictions |
|
20,000 |
|
Totals |
|
1,737,000 |
|
Credit |
||
|
Liabilities |
|
179,000 |
|
Unrestricted Net Assets |
|
202,000 |
|
Temporarily Restricted Net Assets |
|
196,000 |
|
Permanently Restricted Net Assets |
|
201,000 |
|
Contributions—Unrestricted |
|
407,000 |
|
Contributions—Temporarily Restricted |
|
254,000 |
|
Special Events Support—Temporarily Restricted |
|
48,000 |
|
Legacies and Bequests—Permanently Restricted |
|
30,000 |
|
Investment Revenue—Unrestricted |
|
13,000 |
|
Investment Revenue—Temporarily Restricted |
|
11,000 |
|
Gain on Sale of Investments—Temporarily Restricted |
|
8,000 |
|
Gain on Sale of Investments—Permanently Restricted |
|
25,000 |
|
Reclassification In—Unrestricted— |
|
|
|
Satisfaction of Program Restrictions |
|
143,000 |
|
Reclassification In—Unrestricted— |
|
|
|
Satisfaction of Equipment Acquisition Restrictions |
|
20,000 |
|
Totals |
|
1,737,000 |
1. Prepare a statement of activities in the format shown in Illustration 18-2 on page 18-20.
2. Prepare closing entries for each net asset classification.