The Following Statement of Cash Receipts and Disbursements Was Prepared

question 86

Essay

The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of The Anchorage Arboretum Authority.The Arboretum Authority is a component unit of the City of Anchorage and must be included in the City's financial statements.It began operations on January 1,2014 with no outstanding liabilities or commitments and only 2 assets:
(1)$15,000 cash and (2)land that it had paid $ 23,000 to acquire.
•The loan from the bank is dated April 1 and is for a five year period.Interest (4% annual rate)is paid on Oct.1 and April 1 of each year,beginning October 1,2014.
•The machinery was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of 10 years.(straight-line basis)
•Supplies on hand amounted to $ 3,760 at December 31,2014.These included $650 of fertilizer that was received on December 29 and paid in January 2015.All other bills and salaries related to 2014 had been paid by close of business on December 31.
Required:
Part A.Prepare a Statement of Revenues,Expenses and Changes in Net Assets for the year ended 12-31-09 for the Arboretum assuming the City plans to account for its activities on the accrual basis.
Part B.Prepare a Statement of Revenues,Expenditures and Changes in Fund Balance for the year ended 12-31-09 for the Arboretum assuming the City plans to account for its activities on the modified accrual basis.

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Definitions:

Composition

A term referring to the arrangement or makeup of something's parts or elements, often used in contexts ranging from music to writing, and to the chemical makeup of substances.

Maladaptation

Behavior or traits that are counterproductive to an individual's well-being or survival in a particular environment.

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Inspecting

The process of examining something closely in order to gain information.