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Kids Minor Hockey (DM Fund acctg) - Question

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School
Northern Alberta Institute of Technology**We aren't endorsed by this school
Course
JRSB ACCT3351
Subject
Accounting
Date
Dec 16, 2024
Pages
7
Uploaded by doreidagj345
Kids Minor Hockey AssociationCash Flow SummaryJE RefFundYear ended, December 31, 2020Capital FundCash Inflows1Government grant for operating costs$ 45,000 $ - 2Government grant for hockey arena400,000 3Corporate donations for hockey arena200,000 4Registration fees20,000 5Contributions to fund tournament travel35,000 6Rental of hockey arena40,000 7Interest received- 2,100 105,000 600,000 37,100 Cash Outflows8Operating expenses102,000 9Construction of hockey arena600,000 10Purchase of corporate bonds35,000 11Travel costs for tournament2,100 102,000 600,000 37,100 Cash, end of year$ 3,000 $ - $ - AJE 11213AJE 2AJE 3AJE 4AJE 5Operating FundEndowment Fund
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Kids Minor Hockey AssociationDeferral Method (With Fund Accounting)J/EGeneral Journal#DateAccount NameDebit Credit 2020Fund: Operating Fund1Cash$ 45,000 Deferred Contribution Revenue - op cost$ 45,000 To record government grant for operating costs.Fund: Capital Fund2Cash$ 400,000 Deferred Contribution Revenue - Arena$ 400,000 To record government grant for hockey arena.Fund: Capital Fund 3Cash$ 200,000 Deferred Contribution Revenue - Arena$ 200,000 To record corporate donations for hockey arena.Fund: Operating fund4Cash$ 20,000 Unearned Revenue$ 20,000 To record receipt of registration fees from players for the season.Fund: Endowment Fund5Cash$ 35,000 Net Assets$ 35,000 To record initial contribution to be held as endowment.Fund: Operating Fund6Cash$ 40,000 Unearned Revenue$ 40,000 To record rental fees for arena for the season.Fund: Endowment Fund7Cash $ 2,100 Deferred Contribution - future travel$ 2,100 To record interest earned on endowments restricted for travel costs.Fund: Operating Fund8Operating Expense$ 102,000 Cash$ 102,000 To record payment of operating expenses.Fund: Operating Fund8Deferred Contribution - op cost$ 45,000 Contribution Revenue$ 45,000 To record revenue from government grant used for operating costs.
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Kids Minor Hockey AssociationDeferral Method (With Fund Accounting)J/EGeneral Journal#DateAccount NameDebit Credit Fund: Capital Fund9Hokey Arena$ 600,000 Cash$ 600,000 To record construction of hockey arena.Fund: Endowment Fund10Long Term Investment $ 35,000 Cash$ 35,000 To record purchase of corporate bonds.Fund: Endowment Fund11Travel Expense$ 2,100 Cash$ 2,100 To record out of town travel expenses.Fund: Endowment Fund11Deferred Contribution - Future Travel$ 2,100 Contribution Revenue$ 2,100 To amortize deferred revenue to match the travel costs incurred.Fund: Capital Funds12Land$ 70,000 Net Assets $ 70,000 To record donated land appraised at 70k.Fund:13Equpment - Ice making$ 60,000 Deferred Contribution Revenue - Equipment$ 60,000 To record donations of ice equipment at FMV.Year-End AJEFund:AJE #1Amortization expense$ 5,000 Accumulated Amortisation - hokey Arena$ 5,000 To record amortization of arena for 4 months in 2020.Amortization expense =(600,000/40 years) x (4/12) Fund:Deferred Contribution revenue - arenacontribution RevenueTo amortize revenue of related to deferred contributions of hockey arena.Fund: Capital Fund AJE #2Amortization Expense $ 2,000 Acumulated Amortization - Equipment $ 2,000 To record amortization of ice equipment for 4 months in 2020.Amortization expense = 60,000/10 years x 4/12Fund:
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Kids Minor Hockey AssociationDeferral Method (With Fund Accounting)J/EGeneral Journal#DateAccount NameDebit Credit Deferred Contribution Revenue - Equipment $ 2,000 Contribution Revenue $ 2,000 To amortize revenue related to deferred contributions for ice equipment.Fund: Operating Fund AJE #3Contribution Receivable$ 5,000 Deferred Contribution Revenue$ 5,000 To accrue contributions receivable from annual grant.Fund: Operating Fund Deferred Contribution Revenue$ 5,000 Contribution Revenue$ 5,000 To amortize operating grant revenue that was used in current year operations.Fund: Operating Fund AJE #4Unearned Revenue - registration fee$ 10,000 Registration Fee revenue$ 10,000 To adjust for registration fee revenue earned by Dec 31st.Calculation = 20,000 x 4/8Fund: Operating Fund Unearned Revenue - rental fee$ 20,000 Rental Revenue$ 20,000 To adjust for rental fee revenue earned by Dec 31st.Calculation = 40,000 x 4/8Fund:AJE #5Operating Expense$ 3,000 Acct Payable$ 3,000 To accrue amounts owning for services received in December.
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Kids Minor Hockey AssociationDeferral Method (With Fund Accounting)As at Dec 31, 2020Account NameFundCashOperating3,000 Contribution Revenue - Operating GrantOperating5,000 Accounts PayableOperating3,000 Unearned RevenueOperating30,000 Deferred Contributions - Operating GrantOperating- Net AssetsOperating- Registration Fee RevenueOperating10,000 Rent RevenueOperating20,000 Contr. Rev. from Def. Cont. - Operating GrantOperating50,000 Operating expensesOperating105,000 TOTALS113,000 113,000 CashCapital- LandCapital70,000 Hockey ArenaCapital600,000 Accum. Dep - Hockey ArenaCapital5,000 Ice EquipmentCapital60,000 Accum. Dep - Ice EquipCapital60,000 Deferred Contributions - Hockey ArenaCapital600,000 Deferred Contributions - Ice EquipCapital60,000 Net Assets - Land DonationCapital70,000 Contr. Rev. from Def. Cont. - Hockey ArenaCapital- Contr. Rev. from Def. Cont. - Ice EquipCapital2,000 Amortization ExpenseCapital65,000 TOTALS795,000 797,000 CashEndowment- InvestmentsEndowment35,000 Deferred Contributions - Future TravelEndowment- Net Assets (Endowments)Endowment35,000 Contr. Rev. from Def. Cont. - TravelEndowment2,100 Travel ExpenseEndowment2,100 TOTALS$ 37,100 $ 37,100 AdjustedTrial BalanceDebit BalancesCredit Balances
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Kids Minor Hockey AssociationStatement of OperationsDeferral Method (with Fund Acctg)Year ended, December 31, 2020Capital FundTotalsREVENUESRegistration Fees$ 10,000 $ 10,000 Rent Revenue (Arena)20,000.00 20,000 Interest Revenue- Contribution Revenue from Def. Cont.50,000 2,000 2,100 54,100 TOTAL REVENUES80,000 2,000 2,100 84,100 EXPENSESOperating expenses105,000 105,000 Amortization expense65,000 65,000 Tournament travel expenses2,100 2,100 TOTAL EXPENSES105,000 65,000 2,100 172,100 Surplus (Deficit)$ (25,000)$ (63,000)$ - $ (88,000)Kids Minor Hockey AssociationStatement of Changes in Net AssetsDeferral Method (with Fund Acctg)Year ended, December 31, 2020Capital FundTotalsBalance, Jan. 1$ - $ - Surplus (Deficit)(25,000) (63,000) - (88,000)Donations-in-Kind (Land)70,000 70,000 Endowment contribution35,000 35,000 Internal transfers- Balance, Dec. 31$ (25,000)$ 7,000 $ 35,000 $ 17,000 Operating FundEndowment FundOperating FundEndowment Fund
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Kids Minor Hockey AssociationStatement of Financial PositionDeferral Method (with Fund Acctg)As at December 31, 2020ASSETSCapital FundTotalsCurrent Assets:Cash$ 3,000.00 $ - $ - $ 3,000.00 Contribution Receivable5,000 5,000 Total current assets8,000 - - 8,000 Capital AssetsLand70,000 70,000 Hockey Arena600,000 600,000 Less: Accum. Depreciation(5,000)(5,000)Ice Equipment60,000 60,000 Less: Accum. Depreciation(60,000)(60,000)Total capital assets- 665,000 - 665,000 Long-Term InvestmentsInvestments (endowment funds)35,000 35,000 Total Assets8,000 665,000 35,000 708,000 LIABILITIESCurrent Liabilities- Accounts Payable3,000 3,000 Unearned Revenue30,000 30,000 Deferred Contributions - Grant- Total current liabilities33,000 - - 33,000 Long-Term LiabilitiesDeferred Contributions - Arena600,000 600,000 Deferred Contributions - Ice Equip60,000 60,000 Total long-term liabilities- 660,000 - 660,000 Total liabilities33,000 660,000 - 693,000 NET ASSETSUnrestricted(25,000)(25,000)Invested in capital assets7,000 7,000 Restricted for endowment35,000 35,000 Total Net Assets(25,000) 7,000 35,000 17,000 Total Liabilities & Net Assets$ 8,000.00 $ 667,000.00 $ 35,000.00 $ 710,000.00 Operating FundEndowment Fund
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