Financial Management
Homework #7
Forever Friends Rescue
Forever Friends Rescue is a not-for-profit rescue shelter dedicated to helping rehabilitate and find homes for previously neglected dogs. The organization ended FY 2024 on December 31, 2024 with the following account balances (in alphabetical order):
|
Accounts Payable
|
10,350
|
|
Cash
|
13,500
|
|
Contracts Receivable
|
9,000
|
|
Equipment
|
120,000
|
|
Inventory
|
4,200
|
|
Net Assets
|
99,850
|
|
Notes Payable
|
45,000
|
|
Pledges Receivable
|
8,500
|
1. Use the information above to fill in the beginning balances on the transactions worksheet.
2. On the balance sheet, fill in the FY 2023 column by linking to the beginning balances on the transactions worksheet.
3. On the transactions worksheet, record the following financial events, which Forever Friends Rescue experienced during FY 2024, as appropriate:
a. On the first day of the fiscal year, Forever Friends Rescue borrowed $12,750 from a bank.
b. The organization then used the loan to purchase $12,750 in new veterinary equipment.
c. The organization received a $7,000 contract payment from the city for services delivered in the previous fiscal year. The organization anticipates receiving the remaining amount due next fiscal year.
d. Forever Friends Rescue collected 80% of outstanding pledges earned in the previous fiscal year. The organization anticipates collecting the remaining 20% next fiscal year.
e. The organization ordered and received $4,500 worth of supplies, as well as an invoice from the supplier.
f. The organization sent its suppliers a check for $8,700.
g. On the last day of the fiscal year, Forever Friends Rescue signed a contract to purchase an additional $3,000 in veterinary equipment.
4. Calculate the ending balances and then fill in the FY 2024 column of the balance sheet by linking to the ending balances on the transactions worksheet.