Not for Profit Financial Statements. Renfrow Rehabilitation Center uses fund accounting for internal purposes. Presented is the December 31, 2011 balance sheet prepared from the funds the center uses.
Required
The controller asks that you prepare an aggregated balance sheet in accordance with current financial reporting standards for a not for profit health care organization using SFAS No. 117 and the AICPA Audit and Accounting Guide, Health Care Organizations. Based on additional information provided, you determine that
1. The cash and investments of the plant are restricted under the terms of several gifts to use for plant expansion, with income from plant fund investments restricted to the same purpose.
2. Income from endowment fund investments may be used at the discretion of the center’s governing board.
|
RENFROW REHABILITATION CENTER |
||||
|
Assets |
Liabilities and Fund Balances |
|||
|
Operating Fund |
||||
|
Cash |
$ 120,000 |
Accounts payable |
$ 516,000 |
|
|
Short term investments |
500,000 |
Accrued expenses payable |
96,000 |
|
|
Accounts receivable |
$ 137,000 |
|||
|
Less: Allowance for |
||||
|
uncollectible |
||||
|
accounts |
27,000 |
110,000 |
Total liabilities |
612,000 |
|
Inventory of supplies |
74,000 |
Fund balance |
192,000 |
|
|
Total |
$ 804,000 |
Total |
$ 804,000 |
|
|
Plant Fund |
||||
|
Cash |
$ 53,800 |
Mortgage bonds payable |
$ 950,000 |
|
|
Investments |
871,200 |
|||
|
Land |
400,000 |
|||
|
Buildings |
$2,750,000 |
|||
|
Less: Accumulated |
Fund balance: |
|||
|
depreciation |
525,000 |
2,225,000 |
Investment in plant |
2,621,000 |
|
Equipment |
1,380,000 |
Reserved for plant improvement |
||
|
Less: Accumulated |
and replacement |
925,000 |
||
|
depreciation |
434,000 |
946,000 |
Total fund balance |
3,546,000 |
|
Total |
$4,496,000 |
Total |
$4,496,000 |
|
|
Endowment Fund |
||||
|
Cash |
$ 6,000 |
|||
|
Investments |
1,260,000 |
Fund balance—income unrestricted |
$1,266,000 |
|
|
Total |
$1,266,000 |
Total |
$1,266,000 |
|