On January 1, 2020, some residents of the community of Kiterup,B.C., formed the Kiterup Winter Sports Association (KWSA) which was organized as a not-for-profit organization which has as its purposes encouraging participation in outdoor winter sports. In its first year, the board decided to restrict its activities to ice skating and skiing.
Initial funding was provided by a wealthy individual who made an endowment contribution of $200,000 which was invested in bonds and generated income during the year of $8,000. The donor placed no restrictions on the use of the income produced by the investment of the endowment contribution which were to be divided evenly between all programs undertaken by the Association.
During the year donations of $750,000 were received and a further $150,000 of pledges was outstanding of which the board estimated $130,000 would be collected. It was agreed that such donations, all of which were unrestricted, would be divided evenly between the skating and skiing programs. As a practical matter, donations not yet received at year-end were considered to be restricted for use in the following year. A special fund drive was undertaken to raise money to provide skates to needy youngsters and skiing equipment to needy senior citizens. During the year $25,000 was received in contributions for skates and $15,000 for contributions towards purchasing skis.
During the year ended December 31, 2020, the organization incurred the following costs.
$35,00039,000$352,000$254,000\begin{array}{|l|r|r|}\hline & \text { Ice Skating } & \text { Skiing } \\\hline & \text { Program } & \text { Program } \\\hline \text { Wages and salaries } & \$ 193,000 & \$ 81,000 \\\hline \text { Ice skates } & 8,000 &\\\hline \text { Skiing equipment } & & 9,000 \\\hline \text { Other equipment and supplies } & 58,000 & 75,000 \\\hline \text { Transportation } & 43,000 & 35,000 \\\hline \text { Rent } & 15,000 & 15,000 \\\hline \text { Other expenses } & 35,000 & 39,000 \\\hline & \$ 352,000 & \$ 254,000 \\\hline\end{array}$ At December 31, 2020, the only outstanding payables were for $30,000 relating to the skiing program (the costs are included in the table above). The ice skates and skiing equipment were paid for out of the funds raised by the special fund drive and were expensed as acquired.
KWSA does not use fund accounting but uses the deferral method to account for restricted donations and uses programmatic reporting to report the results of its activities.
Prepare a statement of financial position of the Kiterup Winter Sports Association as at December 31, 2020. Statements for the individual programs are not required.

Question

On January 1, 2020, some residents of the community of Kiterup,B.C., formed the Kiterup Winter Sports Association (KWSA) which was organized as a not-for-profit organization which has as its purposes encouraging participation in outdoor winter sports. In its first year, the board decided to restrict its activities to ice skating and skiing.
Initial funding was provided by a wealthy individual who made an endowment contribution of $200,000 which was invested in bonds and generated income during the year of $8,000. The donor placed no restrictions on the use of the income produced by the investment of the endowment contribution which were to be divided evenly between all programs undertaken by the Association.
During the year donations of $750,000 were received and a further $150,000 of pledges was outstanding of which the board estimated $130,000 would be collected. It was agreed that such donations, all of which were unrestricted, would be divided evenly between the skating and skiing programs. As a practical matter, donations not yet received at year-end were considered to be restricted for use in the following year. A special fund drive was undertaken to raise money to provide skates to needy youngsters and skiing equipment to needy senior citizens. During the year $25,000 was received in contributions for skates and $15,000 for contributions towards purchasing skis.
During the year ended December 31, 2020, the organization incurred the following costs.

35,00039,000$352,000$254,000\begin{array}{|l|r|r|}\hline & \text { Ice Skating } & \text { Skiing } \\\hline & \text { Program } & \text { Program } \\\hline \text { Wages and salaries } & \$ 193,000 & \$ 81,000 \\\hline \text { Ice skates } & 8,000 &\\\hline \text { Skiing equipment } & & 9,000 \\\hline \text { Other equipment and supplies } & 58,000 & 75,000 \\\hline \text { Transportation } & 43,000 & 35,000 \\\hline \text { Rent } & 15,000 & 15,000 \\\hline \text { Other expenses } & 35,000 & 39,000 \\\hline & \$ 352,000 & \$ 254,000 \\\hline\end{array}

At December 31, 2020, the only outstanding payables were for $30,000 relating to the skiing program (the costs are included in the table above). The ice skates and skiing equipment were paid for out of the funds raised by the special fund drive and were expensed as acquired.
KWSA does not use fund accounting but uses the deferral method to account for restricted donations and uses programmatic reporting to report the results of its activities.
Prepare a statement of financial position of the Kiterup Winter Sports Association as at December 31, 2020. Statements for the individual programs are not required.

Thidar Thein · Accepted Answer

Final Answer :  Kiterup Winter Sports AssociationStatement of Financial PositionAs at December 31, 2020  Assets:   Cash  $ 222 , 000  Pledges receivable (net)  130 , 000  Investments  200 , 000  Total Assets  $ 552 , 000  Liabilities and Net Assets:   Accounts payable  $ 30 , 000  Deferred contributions-2021 programs  130 , 000  Deferred contributions-skates  17 , 000  Deferred contributions-skiing equipment  6 , 000 183 , 000  Net assets:   Unrestricted  $ 169 , 000  Endowment  200 , 000 369 , 000  Total Liabilities and Net Assets  $ 552 , 000 \begin{array}{|l|l|r|}\hline 	ext { Assets: }  &   &  \\hline 	ext { Cash }  &   &  \$ 222,000 \\hline 	ext { Pledges receivable (net) }  &   &  130,000 \\hline 	ext { Investments }  &   &  200,000 \\hline 	ext { Total Assets }  &   &  \$ 552,000 \\hline 	ext { Liabilities and Net Assets: }  &   &  \\hline 	ext { Accounts payable }  &   &  \$ 30,000 \\hline 	ext { Deferred contributions-2021 programs }  &   &  130,000 \\hline 	ext { Deferred contributions-skates }  &   &  17,000 \\hline 	ext { Deferred contributions-skiing equipment }  &   &  6,000 \\hline  &   &  183,000 \\hline 	ext { Net assets: }  &  \\hline 	ext { Unrestricted }  &  \$ 169,000 \\hline 	ext { Endowment }  &  200,000  & 369,000\\hline 	ext { Total Liabilities and Net Assets }  & & \$552,000 \\hline\end{array}  Assets:   Cash   Pledges receivable (net)   Investments   Total Assets   Liabilities and Net Assets:   Accounts payable   Deferred contributions-2021 programs   Deferred contributions-skates   Deferred contributions-skiing equipment   Net assets:   Unrestricted   Endowment   Total Liabilities and Net Assets  ​ $169 , 000 200 , 000 ​ $222 , 000 130 , 000 200 , 000 $552 , 000 $30 , 000 130 , 000 17 , 000 6 , 000 183 , 000 369 , 000 $552 , 000 ​ ​

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