(Solved by Humans)-Use the following information to answer questions 3 - 10 below:
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??????????????????????????????????? ??Use the following information to answer questions 3 ? 10 below:
The Lancaster Relief Foundation (LRF) is a privately funded voluntary health and welfare organization.? Its trial balance at the beginning of 2014 is as follows:
|
| Dr (Cr) |
| Cash | $395,000? |
| Contributions receivable | 460,000 |
| Investments | 200,000 |
| Buildings & equipment, net | 540,000 |
| Accounts payable | (160,000) |
| Unrestricted net assets???????????? | (680,000) |
| Temporarily restricted net assets | (415,000) |
| Permanently restricted net assets | (340,000) |
The following events occurred during 2014:
1.??????????????? Cash contributions of $3,000,000 were received.? They consist of:
(a)????????????? $1,500,000 received from the public as general contributions,
(b)????????????? $600,000 received from a grant to support programs to finance higher education for single parents, and
(c)?????????????? $900,000 received as a permanent endowment; this money was invested in securities, and the donor specified that investment income and gains and losses are to be used to support LRF?s programs to provide tutoring in the public schools.
2.??????????????? LRF received payments of $50,000 on contribution promises made in previous years.? The present value of these promises increased by $35,000.? Additional documented promises, with a present value of $95,000, were received at the end of 2014.
?3.?????????????? At the end of 2014, the fair value of LRF?s investments in 1(c) is $920,000.? Investment income on the securities is $25,000, all received in cash.? The investments on hand at the beginning of the year were investment of excess cash, sold during 2014 for $210,000.
4.??????????????? Expenses for the year were as follows:
| Educational programs | $? 1,050,000 |
| Financial relief programs | 930,000 |
| Administrative | 370,000 |
| Fund-raising | ???? 65,000 |
| Total | $2,415,000 |
These expenses were paid in cash, except for $200,000 still owing on purchased supplies, salaries, etc., and $40,000 in depreciation on buildings and equipment, which is included as part of administrative expense.? All unpaid bills outstanding at the beginning of the year were paid in 2014.
$20,000 of the investment income in 3. above was used for tutoring expenditures, and $450,000 of the government grant in 1(b) above was used for financial relief programs.? All these expenditures are already included in the expenses listed above.
3.??????????????? Topic:??????? Temporarily restricted contributions
??????????????????? On LRF?s 2014 statement of activities, the net increase in temporarily restricted net assets is:
a.??????????????? $280,000
b.??????????????? $775,000
c.???????????????? $210,000
d.??????????????? $255,000
4.??????????????? Topic:??????? Temporarily restricted contributions
??????????????????? On LRF?s 2014 statement of activities, total net assets released from use restrictions are:
a.??????????????? $450,000
b.??????????????? $520,000
c.???????????????? $470,000
d.??????????????? $? 20,000
5.??????????????? Topic: Unrestricted net assets, statement of activities
??????????????????? On LRF?s 2014 statement of activities, the net change in unrestricted net assets is:
a.??????????????? $(395,000)
b.??????????????? $(385,000)
c.???????????????? $ 135,000
d.??????????????? $?? 85,000
6.??????????????? Topic: Permanently restricted net assets, statement of activities
??????????????????? On LRF?s 2014 statement of activities, the net change in permanently restricted net assets is:
a.??????????????? $900,000
b.??????????????? $910,000
c.???????????????? $920,000
d.??????????????? $930,000
7.??????????????? Topic: Statement of cash flows
On LRF?s 2014 statement of cash flows, cash from contributions, reported in cash from operating activities using the direct method, is:
a.??????????????? $2,250,000
b.??????????????? $2,000,000
c.???????????????? $2,150,000
d.??????????????? $2,100,000
8.??????????????? Topic: Statement of cash flows
On LRF?s 2014 statement of cash flows, cash paid for operating expenses, reported in cash from operating activities using the direct method, is:
a.??????????????? $2,575,000
b.??????????????? $2,175,000
c.???????????????? $2,335,000
d.??????????????? $2,415,000
9.??????????????? Topic: Statement of cash flows
On LRF?s 2014 statement of cash flows, a reconciliation of the change in net assets to net cash from operating activities includes all of the following except:
a.??????????????? Subtract unrealized gains on investments, $20,000
b.??????????????? Subtract endowment contribution, $900,000
c.???????????????? Add depreciation, $40,000
d.??????????????? Add increase in contributions receivable, $80,000
10.????????????? Topic: Statement of cash flows
??????????????????? On LRF?s 2014 statement of cash flows, cash from financing activities is:
a.??????????????? $0
b.??????????????? $900,000
c.???????????????? $920,000
d.??????????????? $690,000
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This question was answered on: 10 May, 2025
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