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Problem 3 The following adjusted trial balance is taken from the General Fund of Banner City for the year ended June 30. Prepare a (post-closing) Balance sheet in good form. Allowance for uncollectible taxes Cash Due from capital projects fund Due to debt service fund Encumbrances Encumbrances outstanding Expenditures Fund Balance, nonspendable Fund Balance, unassigned Inventory of supplies Other financing sources - bond proceeds Other financing uses - transfers out Revenues Taxes receivable Uneamed (unavailable) grant revenues Vouchers payable 5,000 126,000 22,000 20,000 31,000 31,000 66,000 10,000 17,000 10,000 16,000 9,000 125,000 29,000 45,000 24,000 Problem 4. At the beginning of the year, Scenic Valley Health Services, a health and welfare not-for- profit entity, had the following Net Assets balances: Net Assets: Without donor restriction With donor restriction $2,200,000 $760,000 During the year a number of transactions occurred. Using a 2-column schedule, show how each of the following transactions would affect the organization's two categories of Net assets. Show any reclassification necessary. Number each entry on your schedule to match the numbering below and provide a final total. Put your answers in order from 1 to 10. Do not net amounts together. 1. Received cash gifts without donor restriction of $285,000. 2. Paid salaries of $30,000 with $5,000 of that amount coming from restricted funds. 3. Equipment is bought for $105,000 by signing a long-term note for $55,000 and using funds subject to donor restriction for the remainder. 4. Received a contribution without donor restriction of $92,000. It is expected that the entire amount will be collected in three years. Present value is $75,000. 5. Received a cash gift of $14,000 that must be conveyed to another charity. However, the board has the right to choose which other charity ultimately receives the donation. 6. Depreciation of $32,000 on the entity's equipment is recorded. 7. Interest of $50 and principal of $2,000 is paid on the note previously signed when the equipment was purchased. 8. A donor gives an investment worth $190,000 that must be kept invested forever, but any interest or dividends can be used for any legitimate purpose of the entity 9. Collected membership dues of $25,000. The members receive a reasonable amount of value in exchange for these dues including a monthly newsletter describing research activities 10. Investment income of $1,800 is generated from the investment received in item (8) above

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