Union Seminary Uses the Fund Basis of Accounting for Internal

question 38

Essay

Union Seminary uses the fund basis of accounting for internal record keeping.Presented below is the fully adjusted 12/31/2012 balance sheet for Union,prepared using funds and account groups.The following are fund descriptions:
● Operating Fund - the fund used for transactions not falling within the definition of other funds.There are no restrictions on these resources.
● Memorial Fund - Used to account for resources donated from outside parties for specific capital additions.
● Endowment Fund - Assets received from an outside donor for permanent investment,only the earnings may be expended.
● Scholarship Fund - Cash set aside by the Seminary's governing board for use as scholarships and student aid.
● Fixed Assets Account Group - A record of the Seminary's fixed assets and long-term debt.
Required:
Prepare a Statement of Financial Position following the guidelines provided in FASB Statements 116 and 117 for private not-for-profits and assuming Union does not classify plant assets as temporarily restricted.

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Definitions:

Pharmaceutical Company

A business involved in the research, development, manufacturing, and distribution of medications.

Self-Employment Income

Self-Employment Income refers to earnings derived from one’s own business, professional practice, or freelance work, as opposed to earning a salary or wages from an employer.

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. for tax purposes, allowing for accelerated asset expense deductions over time.

5-Year Property

Property that is classified under MACRS (Modified Accelerated Cost Recovery System) as having a recovery period of 5 years for depreciation purposes.